AlwaysFree: Argentina’s Energy Plans Clouded By Political Row

Argentina’s President Alberto Fernandez recently reshuffled the country’s cabinet after a public row with his powerful vice president Cristina Fernandez de Kirchner. The row began after a crushing defeat in nationwide primaries on September 12. In the next following days, many ministers and officials allied with Fernandez de Kirchner offered their resignation. On September 16, Fernandez de Kirchner issued an open letter blaming Fernandez’ economic policies for the “political catastrophe.”

A day later, President Fernandez announced the cabinet overhaul and new ministers were sworn on September 20. Analysts said that the row could remove the ruling Peronist coalition’s control over Congress in the upcoming legislative election on November 14. This will likely force the ruling coalition to prioritise social spending over economic initiatives to win electorates.

Analysts said the prospects for the bill to promote oil and gas investment and a proposal to slash costly energy-sector subsidies would likely dim. Last week, the government proposed a 2022 budget that envisages a reduction in energy subsidies from 2.2% of GDP to 1.5%. However, lawmakers allied with Fernandez de Kirchner are expected to oppose plans to slash subsidies amid a lengthy economic recession and annual inflation of over 50%.

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