The picture released by Telam on Sept 13, 2021 showing Argentina's President Alberto Fernandez (left) and Vice-President Cristina Fernandez de Kirchner addressing the media following the results of the primary legislative elections, at the Frente de Todos party headquarters in Buenos Aires. (MAXIMILIANO LUNA / TELAM / AFP)

Argentina’s powerful Vice-President Cristina Fernandez de Kirchner slammed President Alberto Fernandez in an open letter, heightening the political crisis that has roiled the government since it lost an election Sunday. 

Kirchner, who governed Argentina from 2007 to 2015, published a letter Thursday blaming Fernandez for a “political catastrophe” she says was caused by his economic strategy. Their coalition’s loss in the Sept 12 midterm primary vote was largely due to the government’s mistaken policy of fiscal austerity, she said, adding pressure on Fernandez to ramp up spending. She also called for an overhaul of the cabinet. 

Vice-President Cristina Fernandez de Kirchner, who governed Argentina from 2007 to 2015, published a letter Thursday blaming President Alberto Fernandez for a “political catastrophe” she says was caused by his economic strategy

In meetings with the president ahead of the vote, Kirchner said she repeatedly warned against spending cuts “that were negatively impacting economic activity and society, and which would undoubtedly have electoral consequences.” 

Kirchner chose Fernandez to lead their Frente de Todos coalition ticket for the 2019 presidential vote. Just two months from the final midterm vote on Nov 14, the letter blows open the political divide between the two factions: Kirchner and the radical Peronist officials close to her; and Fernandez’s more moderate cabinet allies.

The internal feud comes after the ruling coalition was soundly defeated in most of Argentina’s provinces Sunday, including Buenos Aires, a key battleground. 

With no access to 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. 

A man rides his bicycle as media vehicles park outside the Casa Rosada government house in Buenos Aires, Argentina on Sept 15, 2021. (MARCOS BRINDICCI / AP)

Canceled trip

After the letter went online, the president canceled upcoming 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. 

With no access to international credit markets, the government cannot easily heed Vice-President Cristina Fernandez de Kirchner’s calls to ramp up spending without the central bank printing money and worsening one of the world’s highest inflation rates

The dispute will make it harder for Argentina to reach a deal with the International Monetary Fund to reschedule payments on US$45 billion of debt, said Daniel Kerner, a managing director for Latin America at the Eurasia Group. 

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“Kirchner wants control of the government and Fernandez doesn’t want to give in at this point,” Kerner said in response to written questions. “A deal with the IMF is really hard right now.”

Argentina owes the IMF US$1.9 billion on Sept 22, the first principal repayment of a record bailout from 2018. Kirchner’s call for more government spending could also complicate the talks. 

Argentina is emerging from three straight years of recession and remains afflicted by 50 percent annual inflation and double-digit unemployment. 

This AFP graphic dated May 28, 2021 shows the maturity of capital and interest on Argentina's debt with the IMF.

Harsh words

President Alberto Fernandez resisted making cabinet changes, setting the stage for several ministers and officials aligned with Vice-President Cristina Fernandez de Kirchner to offer letters of resignation Wednesday and escalating the political crisis

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 Fernandez on Tuesday that he pick new officials for key roles, such as the governor of the province of Tucuman, Juan Manzur, 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 most loyal lieutenants.  

The president resisted making cabinet changes, 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. 

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Kirchner finished her letter reminding Fernandez that she personally picked him for the top job. 

“I just ask the president to honor that decision,” she said.