International

Argentina govt loses Congress majority, seeks opposition dialogue

AFP

Argentina’s center-left President Alberto Fernandez called for dialogue with the opposition after Sunday’s midterm parliamentary elections, with projections showing his governing coalition has lost control of Congress.

Ahead of the election, there was widespread discontent over the state of the economy, which has been in recession since 2018 and was hit hard by the Covid-19 pandemic.

Having already been in the minority in the Chamber of Deputies — the lower house — Fernandez’s Frente de Todos (Everyone’s Front) coalition looked set to drop from 41 to 35 seats in the 72-member Senate, based on projections with over 90 percent of votes counted.

“If the numbers are confirmed, effectively we’ve lost the quorum in the Senate,” a government source told AFP.

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This would be the first time since Argentina’s return to democracy in 1983 that Peronism — a leftist movement based on former president Juan Peron that now covers a broad spectrum of political leanings — would not have a majority in the Senate.

Fernandez will now likely be forced to make concessions to the opposition during the last two years of his mandate in order to pass laws or make key appointments, including to the judiciary.

“We need to prioritize national agreements if we want to resolve the challenges we face,” said Fernandez, adding that he would approach opposition groups to try to find common ground.

“An opposition that is responsible and open to dialogue is a patriotic opposition.”

Nearly half the seats in the Chamber of Deputies were up for grabs, as well as a third of Senate seats, in Sunday’s vote.

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Interior Minister Wado de Pedro said turnout in the compulsory election was between 71 and 72 percent.

– ‘Difficulty ahead’ –

Fernandez had been on the defensive since the Frente suffered a bruising defeat in September’s primaries, picking up just 33 percent of the vote compared with 37 percent for the main opposition group Juntos por el Cambio (Together for Change), led by Fernandez’s predecessor Mauricio Macri.

“These next two years are going to be difficult,” Macri said Sunday, while assuring voters that his coalition would “act with great responsibility.”

Fernandez “will have to negotiate law by law,” said Raul Aragon, political scientist at the National University of La Matanza.

He predicted the opposition would be open to talks though.

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“It won’t serve them to not engage in dialogue, and appear anti-democratic” before the presidential elections in 2023, Aragon said.

Since the primaries, the government had been in damage limitation mode, announcing last month a deal with the private sector to freeze prices on more than 1,500 basic goods following street protests demanding greater food subsidies.

It has also increased the minimum wage and family allowances.

The government’s supporters have been forced to keep a low profile during the long pandemic lockdowns.

But pro-government trade unions and social organizations recently announced they would march in support of Fernandez on Wednesday, regardless of the election results.

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– IMF debt looms –

Argentina’s GDP dropped 9.9 percent last year due to the coronavirus pandemic.

The country has one of the world’s highest inflation rates, at 40 percent so far this year, and a poverty rate of 42 percent for a population of 45 million.

“I fear for the economy,” pastry worker Oscar Navarro told AFP on Sunday, without revealing his vote.

“Salaries are not sufficient. Whoever wins, it will take a long time for the country to recover.”

The government is also in the midst of a tricky renegotiation with the International Monetary Fund over the repayment of a $44 billion debt, originally secured by the Macri government in 2018.

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“In this new stage, we will deepen our efforts to secure a sustainable deal with the IMF,” said Fernandez.

He said the country needed to get past the “uncertainties that come with unsustainable debt,” while creating jobs and reducing inflation.

If Fernandez does not manage to reach a new repayment schedule, Argentina will have to repay $19 billion in 2022 and as much again in 2023.

International

Paraguay summons Brazilian ambassador over Itaipú espionage scandal

Paraguay summoned the Brazilian ambassador in Asunción on Tuesday to demand “explanations” and called its own representative in Brasília for consultations following Brazil’s acknowledgment of an espionage operation. The Brazilian government, led by President Luiz Inácio Lula da Silva, attributed the operation to the previous administration.

The surveillance effort aimed to uncover Paraguay’s position in now-suspended negotiations with Brazil regarding the pricing of electricity from the binational Itaipú hydroelectric plant, according to reports in the Brazilian press.

The Brazilian government “categorically denied any involvement in the intelligence operation,” stating in a Foreign Ministry communiqué on Monday that the espionage was carried out under former President Jair Bolsonaro’s administration (2019-2023).

“The operation was authorized by the previous government in June 2022 and was annulled by the interim director of the (state intelligence agency) ABIN on March 27, 2023, as soon as the current administration became aware of it,” Brazil’s government asserted.

Paraguay’s Foreign Minister Rubén Ramírez announced that Brazilian Ambassador José Antonio Marcondes de Carvalho was summoned “to provide detailed explanations” regarding the operation. Additionally, Paraguay recalled its diplomatic representative in Brasília “to report on aspects related to the intelligence activity conducted by Brazil regarding Paraguay’s government affairs.”

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International

Elon Musk to step down as government advisor, per Trump insiders

President Donald Trump has informed his inner circle that Elon Musk will be stepping down from his role as a government advisor, according to a report by Politico today.

Citing three individuals close to Trump, Politico states that the president is pleased with Musk’s leadership at the Department of Government Efficiency (DOGE), where he has implemented significant budget cuts. However, both have agreed that it is time for Musk to return to his businesses and support Trump from a different position outside the government.

A senior administration official told Politico that Musk will likely maintain an informal advisory role and continue to be an occasional visitor to the White House. Another source warned that anyone thinking Musk will completely disappear from Trump’s circle is “deluding themselves.”

According to the sources, this transition is expected to coincide with the end of Musk’s tenure as a “special government employee,” a temporary status that exempts him from certain ethics and conflict-of-interest regulations. This 130-day period is set to expire in late May or early June.

International

Milei vows to make Argentina so strong that Falkland Islanders “choose” to join

Argentine President Javier Milei reaffirmed his country’s claim over the Falkland Islands (known as the Islas Malvinas in Argentina) and praised the role of the nation’s armed forces during a ceremony marking the “Veterans and Fallen Soldiers of the Malvinas War Day,” commemorating 43 years since the 1982 conflict with the United Kingdom.

Argentina continues to assert sovereignty over the islands, arguing that Britain unlawfully seized them in 1833.

“If sovereignty over the Malvinas is the issue, we have always made it clear that the most important vote is the one cast with one’s feet. We hope that one day, the Malvinas residents will choose to vote with their feet and join us,” Milei stated.

“That is why we aim to become a global power—so much so that they would prefer to be Argentine, making deterrence or persuasion unnecessary. This is why we have embarked on a path of liberation, working to make Argentina the freest country in the world and once again the nation with the highest GDP per capita on the planet,” he added.