MercoPress. South Atlantic News Agency

Argentine industry warns of “political crisis”, more serious than “economic crisis

Hector Mendez claims the electoral campaign debate has been driven into a situation of extreme tension for the whole community.

The head of Argentina’s powerful Industrial Union, UIA, said the country is going through “a political crisis” which is more severe than the economic crisis and ventured that the current electoral climate “does not offer significant political alternatives or leaderships”.

Héctor Mendez, UIA president admitted having no dialogue with President Cristina Fernandez de Kirchner and denied manufacturers are asking for a massive devaluation of the Argentine peso on June 29th following next Sunday’s mid term election.

“We haven’t asked anything from government; I don’t have a dialogue with the President”, said Hector Mendez, adding that “yes following June 29th we’ll have to reconsider the whole situation. Talking about devaluation is a dreadful simplicity of the situation”.

However he did insist that Argentina is suffering a political crisis because in the current electoral campaign “everything is driven to a situation of extreme tension, instead of addressing issues with a serene, calm approach”.

“I can’t see significant (political) alternatives or leaderships in the current climate”, underlined Mendez.

”We would like to see a strong government, but which at the same time has the willingness and initiative to introduce changes”.

Asked specifically about the US dollar and if the UIA had requested a strong devaluation of the Argentine peso, Mendez denied point blank such a proposal “we’ve asked for nothing; I don’t have a dialogue with the president”.

Even when thinking a devaluation “could repair some of the damage” inflicted to the economy, it would be stubborn since what really matters is the “political crisis; it’s more important than the economic crisis”.

Asked to expand about the “political crisis”, Mendez said “elections are clearly showing Argentina is in a situation where debating is too emphatic: all is driven to a maximum tension, instead of keeping calm and sending a message of reassurance”.

After all elections “are something you must transit but in Argentina they are taken as a life or death issue, and this makes the situation extremely tense”. Mendez said the UIA would like to see a “strong democracy, a strong government and that changes to be done are effectively undertaken”.

“We would like to know which outlays the government is going to privilege, political positions before different challenges, foreign relations, because decisions are needed, urgently in a rapidly changing world”, insisted Mendez.

Nevertheless Mendez admitted that Argentine industry can’t complain, “it would be unfair to say we have been mistreated by this government”. He insisted that “things must not be addressed in absolute terms; not all is terrible, not all is wonderful, but the overall situation is difficult, like in the rest of the world”.