Il Argentine Economy Minister Martin Guzmán resigns, marking the biggest exit from President Alberto Fernandez's government after escalating fighting within the governing coalition over how to handle the growing economic crisis in Argentina struggling with skyrocketing inflation and diesel shortages. Furthermore, Guzmán's resignation caps off a tense week in the currency markets, with the dollar at historic highs after the Central Bank's decision to impose greater restrictions on companies' access to foreign currency to pay for imports, a measure aimed at protecting the country's scarce foreign exchange reserves.
Guzmán gives in to the pressures of Kirchnerism and resigns
Minister since late 2019 and close ally of President Alberto Fernandez, XNUMX-year-old Guzmán did not explain the reasons for his resignation. But in a seven-page letter posted to Twitter, he suggested internal battles were at least part of the reason for his decision, asking Fernandez to mend the divide so the "next minister doesn't suffer" the same hardships he has. had him.
Guzmán, who had clashed with the vice president Cristina Fernandez de Kirchner, leader of the far-left wing, said he maintains "confidence in my vision of the path that Argentina should follow." "From the day we understood that you could become the president of the nation, I decided to try to become the minister of the economy of your government," she added.
The minister – a favorite pupil of the 2001 US Nobel Prize in Economics, Joseph Stiglit – has come under pressure as Argentines struggle with inflation exceeding 60% (which could reach 2022% by the end of 70). The shock also raises questions about Argentina's ability to comply with the recent negotiations debt refinancing – contract in 2018 – worth 45 billion dollars with the International Monetary Fund, whose goals for the second half of the year are considered by private economists “too demanding to achieve”.
But lawmakers allied with Vice President de Kirchner, who has called for more spending to alleviate poverty levels, voted against the IMF deal, which passed through Congress only thanks to the support of the centre-right opposition.
Kirchner herself criticized the government's handling of inflation, the foreign exchange market and reserves last May. In a speech on Saturday to commemorate the 48th anniversary of Juan Domingo Perón's death - before the publication of Guzmán's resignation letter - you again criticized economic policy.
Second resignation in a month: before Guzmán also Kulfas
The move also deals a blow to Fernandez's power base, which is weakening. Guzmán's resignation is the second in less than a month from the government cabinet.
In early June, again following tensions with the vice president, Matias Kulfas, another man close to the president and a key figure in the management of industrial policy, has resigned as Minister of Productive Development.
The president's office said it did not yet know when the replacement will be announced. Fernandez has summoned members of his cabinet and his allies to an emergency meeting, a government source said.
