Argentina's Fernandez Considers Scrapping Term Limits

Lawmakers from both branches of Argentina's legislature who back Argentine President Cristina Fernandez de Kirchner intend to begin debating a constitutional amendment in mid-November that would permit indefinite presidential re-election, though the actual changes could be delayed until late 2013, Argentine newspaper La Nacion has reported. Rumors have also surfaced that to gain provincial support for eliminating term limits, Fernandez's government may be willing to advocate changing the fiscal pact that regulates revenue sharing between the federal and provincial governments so provincial governments receive a greater share of tax revenues.

Such a deal could significantly improve the outlook for Argentina's cash-strapped provincial governments. At the same time, it would further strain the federal government's finances and could force the government to push responsibility for funding part of the budget onto the provinces.