Daily Archives: October 7, 2013

John Paul Rathbone

Cristina Fernández is an aggressive politician with a fragile state of health, which makes for a lousy combination. Credibly diagnosed over the weekend with blood on her brain — a possibly but not necessarily serious condition — doctors have ordered the Argentine president to rest for a month. Just three weeks before mid-term elections, this surprise development has the potential to throw Argentina, its politics and even its creditor discussions wide open. For Ms Fernández it is also a medical misfortune that could, ironically, turn out to be a political gift.

Her government faces a crescendo of problems. Its long-running battle in a New York court with a group of holdout creditors could well end in a technical default. Currency controls are strangling the economy and deterring investment while inflation is running at a privately-estimated 25 per cent (not even ministers believe the official figures.) Corruption scandals are a regular occurrence. Meanwhile, Ms Fernández has also picked a series of fights with her neighbours, most recently Chile and Uruguay, losing Argentina its few remaining international friends. As a result, her ruling coalition is expected to lose big in the mid-term elections on October 27.