POLITICS-ARGENTINA: Government Denies Resignation Rumours

By Marcela Valente Reprint | | Print |

Marcela Valente

BUENOS AIRES, May 23 2002 (IPS) - President Eduardo Duhalde threatened to resign if the Argentine Congress does not quickly approve the legislation recommended by the International Monetary Fund (IMF), according to the rumours that seem to gather strength each day, despite the government’s best attempts to play them down.

At a meeting with lawmakers and ministers Wednesday, Duhalde “struck the table and stated that this is not a game,” that things are occurring “too slowly, and at this rate, I’m just not interested,” said presidential spokesman Eduardo Amadeo, Thursday.

Duhalde “asked everyone to assume their responsibilities,” said Amadeo, “and the president’s warning hit home.” The president complained, “I work 20 hours a day. I am killing myself for this, and it seems that here I have people who are waiting for a solution to fall from the sky,” according to the spokesman.

But Cabinet chief Alfredo Atanasof stated, “At no moment did the president consider evading his responsibilities in governing the country in such difficult and critical conditions.”

“If you don’t vote on the laws for me, I won’t go on,” was the front-page headline of Página 12 newspaper, citing what sources close to the president claimed he had said.

Clarín, another daily, led with the headline “Duhalde threatens to resign”, while La Nación’s was “Duhalde seeks support and puts conditions on remaining” in the government.

Various sources reported that Duhalde had threatened on Wednesday to resign this week if Congress does not approve – as the IMF recommends – a new law on “economic subversion”.

The legislation in force is serving as the grounds for lawsuits against banking executives and former officials on charges related to the country’s profound economic crisis.

Some political leaders have even asserted that the president will present his resignation Monday during a meeting with the provincial governors that are also members of his Justicialista (Peronist) Party.

The alleged threat to step down came as a surprise for many, particularly since Congress and the governors, in spite of the criticisms to the contrary, are making progress on the debate about the IMF-required legislation.

Some of Duhalde’s close advisers admitted that the president had returned very sceptical from his tour through Europe, where the message he received from his counterparts was unambiguous.

Prime ministers José María Aznar, of Spain, and Silvio Berlusconi, of Italy, said there would be no bilateral agreements with Argentina for financial assistance or for trade liberalisation until the South American country signs an accord with the IMF.

The IMF, meanwhile, has stipulated that such an agreement requires a sharp cut in public spending by Argentina’s provinces and the passage of a series of finance-related laws.

Furthermore, upon his return from Europe, Duhalde had to mediate between Economy Minister Roberto Lavagna and Central Bank president Mario Blejer due to the latter’s refusal to loosen the restrictions on bank withdrawals that have tied up Argentine savers’ money since December.

Lavagna, who headed to Washington again on Thursday with the promise that he would hammer out an agreement with the IMF before the end of June, wants a solution that allows savers to use certificates of deposit for a range of purchases.

Blejer, however, fears a new run on the banks and increased inflation if the banking restriction, or “corralito”, is eased and he went as far as threatening to resign if that were to occur.

Duhalde convinced Blejer to remain in his post and promised to press Congress to pass a law that protects the Central Bank leadership from potential lawsuits.

In the numerous interviews Duhalde has granted since his return from Europe, he has given a severe diagnosis of the situation, marked by the worsening of the crisis, the lack of international support and Congress’s delays in passing the requested laws.

The president reportedly complained that he was named to the post Jan 1 by Congress to finish out the term of his predecessor Fernando de la Rúa, and now the same lawmakers are standing in the way of an agreement with the IMF.

In spite of this, Atanasof says that the government is not including – “not even as a working hypothesis” – the possibility of moving up the presidential elections slated for September 2003.

The Cabinet chief did acknowledge, however, that the president “demanded that Congress comply with the signed accords for advancing the plan which would allow Argentina to escape the crisis as soon as possible.”

Duhalde was referring to the 14-point agreement signed by the government, governors and lawmakers from the governing party to facilitate an IMF agreement.

The commitment includes the passage of a new bankruptcy law and the annulment of the economic subversion law. The first has already been approved and the second is awaiting a vote in the Chamber of Deputies.

Among the requirements laid out by the IMF is that 21 of the 23 provinces must agree to slash their fiscal deficits by 60 percent. To date, only six have signed that agreement.