Argentine Economy Minister Martín Guzmán resigned this Saturday (2).
The decision was communicated through social networks, at the same time that the country’s former president and current vice president, Cristina Kirchner, was making a speech in which she criticized the management of the economy.
Guzmán published a lengthy letter to President Alberto Fernández, which he posted on Twitter. “With the deep conviction and confidence in my vision about the path that Argentina should follow, I will continue working and acting for a more just, free and sovereign homeland”, he said in the message, highlighting the achievements of his administration.
The minister’s administration was marked by negotiations with the IMF (International Monetary Fund) in an attempt for the country to achieve balance in public accounts in 2024.
A specialist in foreign debt renegotiation processes, Guzmán was tasked with delivering a new payment schedule for Argentine bonds that Mauricio Macri’s government had left in default. On August 31, 2020, after months of intense negotiations and eight months after taking office, the minister successfully closed the dollar debt restructuring.
The success of this negotiation ended up being hampered by the economic consequences of the pandemic. Argentina’s GDP (Gross Domestic Product) fell by almost 10% in 2020, while the renegotiation was postponed.
This renegotiation also marks the beginning of the deterioration in the relationship between Fernández and Kirchner. In a speech on Saturday, she said that “the fiscal deficit is not responsible for inflation.”
According to a survey by Management & Fit, inflation is now the main concern of 43.4% of Argentines. In 2020, this share represented 9.9%.
On his Twitter profile, Guzmán thanked Fernández for the opportunity to have been the country’s minister and mentioned the troubled period he faced as a minister.
“Argentina has plunged into a deep economic, social and debt crisis, to which is added a global pandemic and a war in Ukraine.”
“The first time I spoke to Argentina as the nation’s Minister of Economy, I said that our goal was to calm the economy. a true epic,” he added.
He also stressed the importance of working on a political agreement within the ruling coalition, “so that whoever replaces me will have the centralized management of the macroeconomic policy instruments necessary to consolidate the progress described and face future challenges.”
According to the former minister, this measure will help his successor to carry out efforts that lead to economic and social progress with the political support necessary for them to be effective, Guzman also said in his resignation letter.
In May, in an interview with a television program, Guzmán had already stated that inflation has “external components”, such as the war in Europe, but he also stressed that divisions within the government alliance itself are one of the reasons for not providing answers. more concrete. He was referring to the internal conflict that exists between the president and his vice president, Cristina Kirchner.
In fact, the only action to try to reduce prices came with the freezing attempts imposed by the secretary of commerce. Guzmán considered that this resource alone was not enough.
According to the Argentine newspaper La Nación, the former minister had been resisting permanent public pressure from within the government’s wings, in addition to multiple clashes with officials from the economic team. “In the face of much speculation about his departure, he has always responded calmly and expressionlessly,” the publication reads.
However, the government’s internal conflicts in recent weeks have been making it difficult to manage the crisis, with an impact on the financial market.
The minister’s disagreements with his subordinates also prevented him from having full control of the portfolio’s management, which also led Guzmán to make the decision, according to the newspaper.
As Guzmán presented his resignation, Kirchner was speaking at an event to mark the 48th anniversary of the death of Juan Domingo Perón, founder of Peronism. The minister was the vice president’s favorite target and the political sector she leads within the government alliance.
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