MercoPress. South Atlantic News Agency

With Redrado out of the way, Cobos is the next Kirchners’ target

Julio Cobos will again almost certainly have to cast a decisive vote

The institutional crisis facing Argentina remains open in spite of the resignation of the Central Bank president Martin Perez Redrado and is centred on whether the Executive can put its hands on the international reserves to pay sovereign debt.

The decision could depend on Vice-president Julio Cobos who although elected in the ticket with President Cristina Fernandez de Kirchner, has since mid 2008 marked his own path when he cast the decisive vote in the Senate favouring protesting farmers in a long dispute with the government over taxes.

“For the government there is no such resignation, it can’t be accepted because the special Congressional commission must take position on the issue”, said cabinet Chief Anibal Fernandez in a new escalation of the month long crisis.

The special congressional commission must decide next Tuesday on Perez Redrado’s ousting by a decree signed by President Cristina Kirchner and which argues “poor performance of his duties” by the banker.

The government had to back step on the sacking decree and have it put to congressional consideration following Perez Redrado’s request, and support from a court, that such a measure be considered by Congress as established in the bank’s charter.

However opposition Senator Ernesto Sanz said that what really matters, “is not whether Redrado goes or is sacked, the core of the issue is the use of the bank’s reserves and it is on this that Congress must take a decision”.

Perez Redrado shook the administration of Mrs. Kirchner when he refused to comply with a “necessity and urgency” decree ordering the Central Bank to supply 6.5 billion US dollars for a Bicentennials Fund, with international reserves, to pay for government international debts.

However on forcing the three member commission to take a vote on Redrado’s resignation, since one of its members represents the government and the other the opposition, it will be Vice president Cobos who will be interpreting if Mrs. Kirchner is entitled to sack the president of the Central Bank.

If he accepts the principle, his image and the presidential-hopeful best positioned for 2011 could crumble; if he rejects it and insists that the final decision on autarchic Central Bank issues rests on Congress, there will be mounting pressure from the Kirchner couple’s for his ousting since he’s an “enemy”, a “conspirator” who really wants to end the current presidential mandate (by having Mrs. Kirchner ousted or forced to resign).

That was part of the heavy barrage fired on Cobos when Mrs. Kirchner decided at last minute to cancel a much expected and announced week’s visit to China, Argentina’s second most important trade partner.

“I can’t travel overseas when I have someone in my post who I can’t trust”, said Mrs. Kirchner at the moment.

The truth is Cobos would rather let the Kirchners standing continue to deteriorate and have Cristina Kirchner end her four year term, while his institutional stature keeps gaining public opinion support.

“If they want me out they can ask Congress to impeach me”, replied Cobos.