Bloomberg - - Argentina s powerful Vice President Alberto Fernandez has in an open letter spoken to president Cristina Fernandez de Kirchner, heightening the political crisis that has roiled the government since it lost an election Sunday.
Fernandez, who ruled from 2007 to 2015, published a letter Thursday blaming Kirchner for a political catastrophe she says was caused by his economic strategy. Their coalition's failure in the September 12 midterm primary election was largely due to the government mistaken policy of fiscal austerity, she said, adding pressure on Fernandez to ramp up spending. She also called for an overhaul of the cabinet.
In meetings with the president before the vote, Kirchner said that she warned repeatedly against spending cuts that would be negatively impacting economic activity and society and which would undoubtedly have electoral consequences. Just two months from the final midterm vote on November 14, the letter blows the political split between Kirchner and the moderate Peronist officials close to her; and Fernandez's radical cabinet allies.
The internal feud comes after the ruling coalition was soundly defeated in most of Argentina's provinces on Sunday, including Buenos Aires, a key battleground.
With no access to the international credit markets, the government cannot easily heed Kirchner's calls to ramp up spending without the Central Bank printing money and worsening one of the world ’s highest inflation rates.
After the letter went online, the president canceled previous trips planned to Mexico and New York for the United Nations General Assembly, according to one of his spokesmen, who declined to comment on the letter itself. The president plans to announce new economic measures soon, the official added.
The dispute will make it harder for Argentina to reach a deal with the International Monetary Fund to reschedule payments on $45 billion of debt, said Daniel Kerner, a managing director at the Eurasia Group for Latin America.
Kerner wants control of the government and Fernandez doesn't want to give in at this point, Kirchner said in response to written questions. Argentina owes the IMF $1.9 billion to the IMF on Sept. 22, the first principal payment of a record bailout from 2018, owed by Argentina. Kirchner's call for more government spending could also complicate the talks.
Argentina emerges from three straight years of recession and remains afflicted by double-digit inflation and annual unemployment.
In the letter, Kirchner accused government officials of being oblivious to Sunday s results and said their refusal to resign is impeding the big change in direction that is needed.
The vice president added that she suggested to Juan Manzur on Tuesday to pick new officials for key roles, such as the governor of Tucuman Province, Fernandez, for the role of cabinet chief.
Manzur met Fernandez on Thursday afternoon in the presidential residence in the outskirts of Buenos Aires City, but no changes have been announced so far. Tapping Manzur for the job would mean firing Cabinet Chief Santiago Cafiero, one of Fernandez s loyal lieutenants.
The president resisted making cabinet changes and setting the stage for several ministers and officials aligned with Kirchner to offer letters of resignation Wednesday and escalating the political crisis. On Thursday, he tweeted that he would guarantee the unity of the coalition.
Fernandez completed her letter reminding Kirchner that she personally picked him for the top job.
I just ask the president to honor that decision, she said.