Argentina Prepares for a New Phase, Again

The transition to a new but familiar phase in Argentina's political and economic cycle is beginning. In October, Argentina will hold elections to determine the successor to President Cristina Fernandez de Kirchner, who has reached her term limit. Argentina has enough financial leeway to delay a settlement for its 2014 technical default with holdout lenders until after the end of the Fernandez presidency. However, the state-centric economic model used to recover from the 2002 crisis is struggling. The major presidential candidates are known for their ideological flexibility. Ultimately, the next president will be guided by necessity rather than ideology in resolving Argentina's debt burden and attracting new investment, especially in the energy sector.