Argentine President's Coalition Wins Midterm Elections
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Argentine President’s Coalition Wins Midterm Elections Mauricio Macri’s Let’s Change group garners broad backing in key provinces, easing his path to new tax cuts and other market-friendly policies Argentine President Mauricio Macri at campaign rally on Tuesday. PHOTO: MARCOS BRINDICCI/REUTERS Wall Street Journal By Taos Turner Updated Oct. 23, 2017 12:15 a.m. ET BUENOS AIRES—President Mauricio Macri won broad backing from Argentines in a key midterm election, paving the way for tax cuts and other pro-business policies. Mr. Macri’s Let’s Change coalition won elections in Argentina’s five leading congressional districts on Sunday, including the capital and its four most populated provinces—the first time any party has done so since 1985. With nearly 99% of the votes counted in most provinces, the coalition appeared on track to win 12 of 16 Senate seats up for grabs. Nationwide, Let’s Change won about 41% of the vote, something that has happened only twice since the return of democracy in 1983, administration officials said. “Let’s Change is now much stronger nationwide,” said Sergio Berensztein, a political analyst. “We’re entering a political cycle where President Macri will have many more resources to carry out his reforms.” Mr. Macri plans to submit bills to Congress soon to overhaul the tax code, reduce the federal budget deficit and make it less expensive to hire and employ workers, officials say. Mr. Macri’s top Senate candidate in Buenos Aires province, Esteban Bullrich, outpolled former president Cristina Kirchner by about 41% to 37%, hindering her hopes of regaining control over the Peronist political movement. Though Mrs. Kirchner won one of three Senate seats at play in the province, her failure to best Mr. Bullrich will likely embolden her Peronist rivals, many of whom support Mr. Macri and don’t want her to seek the presidency again. “When you’ve already been president twice, that’s enough,” Salta Gov. Juan Manuel Urtubey, himself a Peronist presidential hopeful, said recently. The election also seems certain to increase investor confidence that Argentina will continue pursuing market- oriented measures and avoid a return to Mrs. Kirchner’s populist preferences. That could make it easier for Mr. Macri to attract foreign investment, something investors have delayed amid concerns of a comeback by Mrs. Kirchner. “Macri is the Messi of Argentine politics,” Enrique Canals, a 49-year-old import business owner, said after voting for Let’s Change candidates. “I think he needs more time to carry out structural reforms, like tax and labor reform, but things are going very well.” The election was critical to the future of Peronism, an ideologically diverse political movement that has dominated Argentine politics since its founding by Juan Domingo Perón in the 1940s. The movement now has no clear frontrunner to challenge Mr. Macri if he runs for re-election in 2019. Mrs. Kirchner, a fierce critic of Mr. Macri, maintains a loyal following in Buenos Aires province and will likely lead opposition to his congressional initiatives. But she is deeply unpopular nearly everywhere else in Argentina, giving other Peronists an incentive to oppose and isolate her in Congress. Mrs. Kirchner’s legal future is also in doubt. She has been indicted in several cases and is scheduled to testify on Thursday in a case involving alleged obstruction of justice. She has denied all accusations and says she will hold Mr. Macri responsible for her fate. The performance of Mr. Macri’s coalition on Sunday represents a stark turnaround. A year ago, many Argentines openly questioned whether he would even finish his term: No non-Peronist leader elected president has completed his term in generations. But those fears have faded. The economy, stagnant in mid-2016 when annual inflation surged to nearly 45%, expanded 4.9% in July from the year before. Manufacturing was up 5.1% on the year in August. Salaries are rising and inflation is decelerating to about 23%. After surging to 32.2% last year, poverty has fallen to 28.6% and the unemployment rate is declining. Those numbers are benefiting Mr. Macri, whose approval rating rose to 54% in September, up from 45% in July, according to pollster Poliarquia. Business leaders are more upbeat about the economy than they have been in two decades. About 86% of executives expect the economy to improve over the next six months, according to a recent survey by D’Alessio IROL, a local consulting firm. Executives say they expect to invest more and create new jobs. For the first time since Argentina’s economy collapsed in 2001, banks are also offering home loans to middle- class Argentines. That is boosting property sales, which here in the capital are up 42% from a year ago. “I don’t think Macri is very charismatic but he’s the best thing that’s happened to this country,” said María de las Mercedes, 30, after voting for Let’s Change candidates. —Alberto Messer contributed to this article. Write to Taos Turner at [email protected] http://www.miamiherald.com/news/nation-world/article180283721.html#0 https://www.wsj.com/articles/argentine-voters-seen-increasing-presidents-sway-over-congress-1508680809 .