In Argentina, an Economic Crisis Portends Political Chaos
Oct 26, 2019 | 13:31 GMT
(RONALDO SCHEMIDT/AFP/Getty Images)
- Argentina's worsening financial crisis has increased the chances that a protectionist opposition government will successfully unseat President Mauricio Macri's pro-business administration in the country's Oct. 27 presidential election.
- To prevent capital flight amid the peso's slide, the Argentine government may tighten currency controls in the weeks leading up to the election, a measure that would likely remain in place after the vote.
- If opposition leader Alberto Fernandez wins the presidency, he will try to renegotiate the austerity measures tied to Argentina's rescue program with the International Monetary Fund.
- A return to protectionist policies under a Fernandez-led government would put the future of the Mercosur-EU free trade deal at risk, as well as strain Brazilian-Argentine trade ties.