Peronists return to power in Argentina as Macri concedes defeat

28/10/2019

Alberto Fernández secures 48 per cent share of vote with country in economic crisis

Argentina’s Mauricio Macri has conceded defeat in Sunday’s presidential elections, ushering in a return to power for the populist Peronist party that has governed Latin America’s third-largest economy for all but six of the past 30 years.

Alberto Fernández, the 60-year-old former cabinet chief from 2003 to 2008, triumphed with 48 per cent of the vote, while Mr Macri’s centre-right coalition received 40.5 per cent, with 95 per cent of the ballots counted.

“The times ahead will not be easy,” Mr Fernández told rapturous supporters who waved Argentine flags and chanted, “We are coming back!”

He said that he would meet Mr Macri on Monday to smooth the transition. “I hope that those who will now be our opponents are aware of the situation they have left us and that they help us to rebuild the country,” said the president-elect.

Mr Macri conceded defeat in an emotional address to supporters and vowed to “continue working for Argentines through a healthy, constructive and responsible opposition”.

The Peronist victory was vindication for former president Cristina Fernández de Kirchner’s decision to invite the lesser known and more moderate Mr Fernández, who is no relation, to run for the presidency, while she became his running mate.

The strategy enabled the reunification of the Peronist movement after it was deeply divided just two years ago — when the two Fernándezes were not even on speaking terms.

The new government will inherit an economy in crisis: the country is on the brink of its ninth debt default, is in recession and inflation sits at about 55 per cent. Although Mr Macri also faced a disastrous economic situation when he took power four years ago, most headline macroeconomic statistics are now considerably worse after a bruising currency crisis that forced Argentina to seek a record $57bn bailout from the IMF.

The market-friendly Mr Macri’s performance at the ballot box improved considerably after primaries in August, which Mr Fernandez won by 16 points. That is in spite of the peso plunging in value by more than 30 per cent following the primary, fuelling inflation as investors took fright at the prospect of a return to the Peronists’ populist economic policies.

The Fernández duo amply surpassed the 45 per cent threshold to avoid a runoff vote in late November.

Elections were also held for half of the seats in the lower house of congress and a third of the senate. Early results suggest that the Peronists and the centre-right opposition will have similar representation, with each group controlling almost half of both chamber.

Although many of the seats for provincial governors were already filled in separate elections, Mr Macri’s coalition lost control on Sunday of the province of Buenos Aires, Argentina’s most populous province. María Eugenia Vidal lost by about 13 points to Axel Kicillof, who served as economy minister under Ms Fernández.

Horacio Rodríguez Larreta, a member of Mr Macri’s inner circle who succeeded him as mayor of Buenos Aires in 2015, was re-elected in the capital city and might become the de facto leader of the centre-right coalition if the outgoing president withdraws from politics.

Πηγή