Argentina: the economy’s afraid of the left pivot

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After the unexpected victory of the Peronist most in the presidential pre-election, the government of Mauricio Macri has announced an immediate package of measures. However, the Argentine economy is already in the descent.

The Argentine economy after the pre-election rout of President Mauricio Macri last Sunday, in a deep abyss: the national currency, The Peso crash, the country risk, the credit rating of a country abroad is assessed, amounts to almost 2000 points, and Inflation is heading towards the 50-percent mark.

On Wednesday, Macri apologized for his Remarks shortly after the election, when his opponent Alberto Fernandez won with 47 percent of the votes the pre-election for the presidency unexpectedly clear. In a press conference, Macri, reached only 32 percent of the vote, had invited the winners to self-criticism. “On Monday I was taken very of the result of Sunday, with no sleep and sad about the consequences. But I wanted to face the press to answer”.

Promise in contradiction to its own policy: The Argentine President Mauricio Macri

Subsequently, he announced a package of measures, which violates the Orthodox austerity policy of his government, and then phoned Alberto Fernández. As a result, he tweeted: “We have agreed to be in direct contact with each other”.

Macri in the quandary

“What happens now, depends on how the government is: Are you as a candidate in the election campaign, or assumes responsibility, the role of the Executive?”, Alfredo Meyer, a former chief of a metallurgical company, and coordinator of the corporate network, Vistage asks.

Macri is still President of the country, but its government is set up with the slap in the face from the Sunday until the presidential elections in October, as good as checkmate. In the Argentine economy, the uncertainty increases under the.

Jorge Göttert, entrepreneur and President of the Argentine chamber for mechanical engineering CARMAHE manifests itself in a DW interview “very concerned. There are serious fears that Argentina operates soon to be a economy, distance and world foreign policy and that soon we will have Venezuela and Iran as friends. We don’t want to lose our jobs, we have invested in countries such as Japan, Italy or the United States,” he says. Economic relations with Germany, insured Göttert, would not have existed in the time of President Cristina Fernández de Kirchner from 2011 to 2015″, and (to be constructed) only in the last three years”.

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Despite the Worries about the future of the country, the two Argentine business people are agreed that Macri had failed to achieve their objectives. “I have to admit that Macri has made his case very bad, but we saw at least a light on the horizon,” says Göttert. Alfredo Meyer says: “Macri has scored in some very specific areas of sporadic successes, but this was not enough.”

32 percent live below the poverty line

In view of the dramatic levels of unemployment and poverty figures – by the end of 2018, with 32 percent of Argentines and every second child lived below the poverty line – the government is ultimately for the difficult Situation of the country.

A future left-wing government in Argentina, the entrepreneur Göttert looks without hopes: “Should Alberto Fernández want the wheel to turn back, fall back, we for many years. The economy is tired all the time, the rules of the game are changed. Many industries are already weakened. And every company that closes, it means even more unemployed people on the street”.

Alfredo Meyer stresses the urgency of a national Alliance to tackle the crisis. “There are three or four areas where we can be competitive, if we organize ourselves: In agriculture, where we have both raw materials as well as in food production is an excellent Basis in Research, and energy export, if we develop a coherent concept for the oil Shale Deposit ‘Vaca Muerta’.”