Argentina’s finance minister, Martin Guzman, announced his resignation on Saturday. The 39-year-old economist is throwing in the towel in the middle of a severe economic crisis. The resignation is yet another feat in the cold war raging within the governing coalition.
Guzman was the architect of Argentina’s March deal with the International Monetary Fund (IMF) on debt restructuring. The deal involved an amount of nearly $45 billion (approximately EUR 43 billion). This was a legacy of a $57 billion loan taken out by the previous government in 2018.
In recent years, however, Guzman has been confronted with a devaluation of the national currency – the peso – against the US dollar, an inflation rate of about 60 percent and protests from farmers and social movements.
Lack of support
He also struggled with a lack of political support within the government. Supporters of vice president and former head of state Cristina Kirchner have repeatedly criticized Guzman for the deal with the IMF. The controversial deal was successfully piloted through the Argentine Congress, but led to the disintegration of the governing coalition in the Argentine House of Representatives. Maximo Kirchner (son of Cristina Kirchner) even resigned as party leader in protest against the agreement.
In addition, Guzman fought in vain for a long time against lowering energy subsidies to consumers. Due to the rising prices, they demanded an increasing share of the budget. However, the subsidies are popular among the impoverished population, including many supporters of Vice President Cristina Kirchner.
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Despite the criticism, Guzman was one of the longest-serving finance ministers in Argentina. He lasted exactly 935 days.
marriage of convenience
Despite criticism from the opposition and internal strife, Guzman was one of the longest-serving finance ministers in Argentina. He lasted exactly 935 days. The multiple economic and political crises make the ministerial post a major challenge for even the most experienced politicians and economists.
Guzman announced his departure on Twitter on Saturday evening, just as the vice president was making a speech to her supporters. She had not been notified in advance, unlike the president.
The minister was considered a close confidant of President Alberto Fernandez. But the president and the vice president fundamentally disagree on how to tackle the (economic) problems in the country. This battle is being fought openly, through the media and street protests.
The occasional coalition that won the elections in 2019 has been seen as a marriage of convenience from day one. But relations between the running mates deteriorated after the midterm elections in November 2021, in which the government lost a majority in Argentina’s Congress. Vice President Kirchner holds President Fernandez responsible for that.
It is customary for ministerial posts to be examined after a disappointing election. But it is increasingly noticeable that the ministers who resign are generally from the Fernandez camp. Less than a month ago, the Minister of Production also resigned – one of the heaviest posts in the government. As a result, the president seems increasingly isolated within his own government.
In his letter of resignation, Guzman writes that it is “absolutely necessary” to reach a political agreement within the governing coalition about his succession. “That will help my successor to continue the efforts for economic and social progress with the necessary political support.”
President Fernandez told the Argentine daily ‘La Nación’ that he would make a decision on Sunday about who will be the new minister.
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