Politics Economy Local 2025-12-21T13:45:14+00:00

Argentina's Government Risks Its Political Capital

Despite its election victory, Argentina's government lacks a majority in Congress. Legislative errors and questionable alliances with opponents like Kirchnerism pose risks to the economy and erode voter trust.


Argentina's Government Risks Its Political Capital

The government achieved good results in the elections, but it does not have an automatic majority in Congress. This week showed that, even with more legislators, it needs to refine its legislative technique, otherwise it will face defeats or end up making alliances with Kirchnerism, which is something that should not be done in politics. The government had given the impression that it had everything under control, but it had to postpone the labor reform to February because it did not have the necessary number of senators to process it. The labor reform issue is serious, as there will be no investments without this law, and it cedes political initiative to the labor unions, which live on extortion, as shown by the march of recent days. The mistaken inclusion of the repeal of university funding and the disability emergency in the budget generated an affirmative vote in general, but the rejection of an entire chapter that included these two repeals that had already been negatively treated in Congress. Obsessions are never good in politics, and by doing it badly, the budget was left in a dangerous situation. One might think that there are shady dealings in universities; what cannot be done is to risk the budget by including things that had already been rejected. What happened this week shows that winning the elections is not enough if things are not done well, and this government has a tendency to fall into the arms of Peronism, which will welcome it and then betray it. The bad thing happened in a vote to appoint auditors. The issue was not on the extraordinary session agenda, and the ruling coalition arranged a deal with Kirchnerism, favoring it, and now Peronism has a majority in the audit office. A complete absurdity and a betrayal of the alliance with PRO. PRO, the Civic Coalition, and UCR left the chamber, accusing the move of being unconstitutional. The government has a dangerous tendency regarding alliances because it likes to show that it makes agreements with republican sectors, but quickly betrays them and makes bad deals with Peronism. Continuing to give institutional positions to Kirchnerism is a foolishness. It is about reducing them to a marginal role, which corresponds to a political force whose leader is convicted of corruption. The government needs laws for investments to arrive and for the economy to reactivate. They have achieved some things in the economy, but the middle classes are still very bad off. Peronism plays to extract things from them, but when the situation gets bad, it will betray the government. But they have so many Peronists inside who betray their allies for outlandish deals with PJ. The presidency of the chamber held by Martín Menem shows that he is easily fooled by PJ. Down this path, the government will quickly spend the political capital it won in the elections. In a fateful week, the Congress showed that with its failed alliances and bad practices, it gave a boost to the worst unionism and Kirchnerism. It is necessary for the government to reflect on the disasters that Peronism caused in the country. It is about governing with the good people and not giving an advantage to the usual suspects.