This Tuesday, November 21, the outgoing president, Alberto Fernández, and the elected one, the far-right Javier Milei, met for the first time at the presidential residence as the first step in the transfer of power. In addition, the Argentine stock market opened in green after the announcement of privatizations of Milei, specifically of the state oil company YPF, and of the first names of his government cabinet.
“The final presidential vote,” is how the Argentine journalist defined it Leila Guerriero the election date last Sunday. So it was. This Tuesday, November 21 – after yesterday’s holiday for National Sovereignty Day – the first signs of the result of the vote have already begun to be seen: the outgoing president, Alberto Fernández, met for the first time with the incoming president of the extreme right, Javier Milei, at the Quinta de Olivos presidential residence.
It is the first step in the government transition ahead of December 10, when Milei will be sworn in as president of Argentina.
“The meeting was held at the Olivos presidential residence with the aim of beginning the institutional transition process between the teams designated by both in the different areas of government,” reported the Presidency of Argentina in a brief statement that makes clear the differences between the outgoing government—Peronist—and the incoming one.
President @alferdez received this morning the President-elect @JMilei. The meeting took place at the Olivos presidential residence, to begin the institutional transition process between the teams designated by both in the different areas of government. pic.twitter.com/SltQJsFiOe
— Gabriela Cerruti (@gabicerru) November 21, 2023
And this is also shown in the photo that accompanies the statement: Fernández and Milei, serious, sitting in front of a table with glasses of water and the garden of the presidential residence in the background. “Institutional” and “respectful” were some of the adjectives used to describe the meeting, which lasted more than two hours.
“We committed to starting the transition teams with links in all areas,” official sources told the Argentine newspaper ‘Clarín’.
One of those who will contribute to this transfer of power is the current Minister of Economy and former presidential candidate Sergio Massa who, despite announcing his retirement from politics after his defeat on Sunday, will accompany the government until the end of the mandate.
In addition, a subsequent discussion arose that has to do with the libertarian leader’s intention that the ruling party contribute votes for the approval of the 2024 Budget, something that appears complex if the project that he proposes to discuss in Congress includes an adjustment in public spending. 15% as LLA claims.
Green opening of the Argentine economy
This Tuesday, there were many eyes on the Argentine market. And it is no wonder, since this has been one of the main issues – perhaps the most important – of the national campaign, in a country that faces an annual inflation of 142.7%, 40.1% poverty and a exchange gap of 200%.
And, initially, the behavior of the stock and currency markets have reacted favorably to Milei’s election: it has opened in green, with increases of more than 20% in Argentine stocks.
A reaction that has been expected since Monday. Since yesterday there were strong increases in Argentine shares on Wall Street, with a 39.9% rise in those of the oil company YPF, now controlled by the Argentine State, but which the president-elect has promised to privatize. Also with increases of up to 7.6% in sovereign bonds under foreign law.
The informal currency market also shows expectations of devaluation with an increase from 100 pesos to 1,050 pesos per unit of the US dollar. Argentina’s country risk index also fell this Tuesday from 2,411 basis points—which it registered last Friday—to 2,198.
Experts point out that Milei’s economic promises of “change” are one of the main factors that have secured her position in the Casa Rosada. The country’s critical economic situation has redoubled calls for urgent measures to reverse it. Among the promises of the incoming far-right president are some, such as the dollarization of the economy or the closure of the Central Bank of Argentina, which seduced many voters.
Privatizations and cabinet appointments
President-elect Javier Milei comes from proposals that, according to the winner of the Argentine elections, are “innovative” and will help get the nation out of the economic crisis. A promise that will be fulfilled or not with the passage of time.
For the moment, the privatization of public companies is a promise that the elected president promises is imminent. This is a proposal that many experts call anarcho-capitalism, which advocates the deregulation of markets and that they be governed by the law of supply and demand.
Milei has already announced that it plans to privatize the state oil company YPF, a key energy company, with control of the second largest gas reserve in the world and the fourth largest oil reserve. A declaration of intent that had already advanced.
“Everything that can be in the hands of the private sector, will be in the hands of the private sector,” said the president-elect after his victory.
It also plans to do so with public media such as Radio Nacional, TV Pública or Télam, among others, as well as with dozens of other state companies.
But doing so will not be so easy: YPF’s 51% public participation is protected in the Argentine Congress, and to overthrow it, two-thirds of the support of the Chamber of Deputies is needed. In the case of public media, a simple majority is enough, which Milei does not have either.
The libertarian will have only 38 of the 257 deputies in the Chamber of Deputies. To have more options for governance he will need the support of the 33 of Together for Change – which is also unclear due to an internal dispute between supporting Milei or not. His political nemesis, Kirchnerism, has no more and no less than 108 legislators. So the negotiation to approve each law with what he has called “shit lefties” is going to be necessary.
On the other hand, the far-right has advanced some names of his future cabinet. For the moment, Guillermo Ferraro will be in charge of the Ministry of Infrastructure, Mariano Cúneo of the Justice portfolio and Guillermo Francos of the Interior.
Sandra Pettovello would be the Minister of Human Capital – which will combine employment and education –, Diana Mondino will be the new head of Foreign Relations. Nicolás Posse, the strong man of his campaign, sounds like a possible Chief of Staff, a fact that has not yet been confirmed.
The head of La Libertad Avanza also confirmed that his cabinet will be made up of only eight Ministries. Which means a cut of 12 portfolios: Transportation, Public Works, Health, Social Development and Women, Gender and Diversity, among others. It is not yet clear whether these will become secretariats or how these matters that concern the Argentine State will be managed.
With EFE and local media
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