Elections and then some in Argentina
I never knew midterm elections could be so important. In the US, the ruling party usually takes a shellacking, but that didn’t happen here. The President’s party won the majority of the provinces.
The elections were important both internally and externally. Inside, the win allowed the president to start meeting just a few days later with the Governors and others to go after some real changes. The big reforms are, cutting government spending, making hiring and firing easier, and jailing the crooked fat cats.
From the outside, investors were waiting for a clearer validation of the president’s pro business orientation. Now you read names like George Soros (via Reuters) investing in mobile banking startups. That idea, while still shocking to me for three reasons (Soros, mobile banking, startup) would have been much harder if they had lost.
Speaking of losers, remember the last president who robbed the country blind? She came in second place for Senate in the province of Buenos Aires, but still gets a place in the legislature since there were a couple of seats to be awarded. The rub is now she has legislative immunity which is much like diplomatic immunity. She is facing three ongoing investigations into her “what happened to all the money?” past administration. While she may be found guilty of one or all (all!), she won’t serve any time. However, the spotlight is on her and her cronies (who are being scooped up every other day).
The resulting division among the former ruling Peronists helps President Macri and it looks like this country has the best chance it has seen in generations.
