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Macri — Pichetto a new right-wing Peronism?

Questions that leaves the turn towards the president's traditional politics.

Politics and Economics

One day before the closure of the alliances, President   Mauricio Macri  announced his partner from formula, who will be nothing less than  Michelangelo Pichetto , a  Peronist  with recognized political trajectory. For the “  black palate nucleus” of change this represents a transcendental turn.  Having Peronism in power once again  exercising vice-presidency implies the death of the ideal of “new politics” as the framework within which one can govern from “non-politics”. If there is re-election  it will be a government that will seek to close political agreements  to implement its measures.  Goodbye to “magical realism,” and welcome to the pragmatic application of power as a concept for governing the country.

And it is precisely this that was read positively.  “ Cambiemos” not only seeks the re-election of the president, but seeks to consolidate itself as a space that has political projection beyond the next presidency.

 Markets were  the first to issue signs of satisfaction.  They see in Pichetto someone aligned with a  right-wing speech  that also adds  negotiating capacity in the  congress   , something necessary to implement structural reforms that considered essential. They understand that Pichetto's election is based on the idea of  governance for a second term  and  are excited  to have the best of two worlds, a government that has real power (Peronism) to take measures that were postponed (macrisist liberal reform).

However, in the  election  , the move is not so clear. While it can indirectly help stabilize economic volatility and  consolidate liberal expectations  for a second term, in practice  Pichetto does not force any representative peronist space at the polls, but it could drive  away more conservative voters. On the other hand, the nomination of Pichetto cannot be understood without the previous announcement of  Alberto  and Cristina's formula that reconfigured the political spaces adding the support of the governors  Peronists . There he must make his contribution today's candidate for vice, trying to attract the  Peronists who do not feel identified  with the formula of Alberto and Cristina.

The hard task of explaining that a government he always criticized now represents the real alternative for the country, something overcoming than a party alternative. In that regard, I was able to rely on facts of current management and show that the provinces received  more federal funds  and that most have  surplus accounts  , in addition to guaranteeing governors an interlocutor in a second term. It will be difficult to convince governors to support a government that is obliged by its financial needs to  advance a liberal agenda  underpinned by  labor, tax and pension reform.  

With regard to the need to regain the initiative on the political agenda, the  government formula is a well-thought-out move  taking into account the current situation,  but it can be counterproductive  if it lays the basis for electorally speculation.  Governors   could well close their incorporation into Alberto Fernández's space with whom direct participation and programmatic affinity of his future government could be guaranteed  . Alberto does not carry on continuity commitments and is therefore not conditioned to negotiate in the event of winning the elections.  Peronism now knows he can play winner because  in case Macri wins they can sit down and negotiate from the congress.

Argentina 's current economic and political situation  should call for caution  , but that does not win elections and what matters today for the government is generating positive expectations about the future. What today generates  illusion is actually a sign of weakness  that tomorrow can generate disappointment because Pichetto's true usefulness as vice president  will depend that Peronism does not make him a power vacuum  and leave him without the attribute by which he was called. But there will be time to deal with reality from December if Pichetto fails to generate the expected influence and ends up transforming into  “Michetto”. 

Publication Date: 16/06/2019

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