DOMESTIC POLITICS: The government, led by the president, Cristina Fernandez de Kirchner, has abandoned the conciliatory tone it adopted following its defeat at the June 2009 mid-term legislative election, setting the stage for continued political tensions throughout the run-up to the presidential election in October 2011. Having initially promised a dialogue with its opponents post-election, the government has refused to budge on key issues and has antagonised the opposition by pushing through important legislation before it loses its congressional majority in December. Progress on the government's policy agenda has been facilitated in recent months by internal disarray within the opposition, with leading opposition politicians already preoccupied with jockeying for position in the 2011 presidential election. A growing reliance on discretionary central government transfers on the part of the cash-strapped provinces has also helped the government retain control of the political agenda. However, once the new opposition-dominated Congress takes up its seats in December, governability will become much more complicated. Although the government may be able to garner support for some legislation by continuing to offer assistance to its political allies in financially troubled provinces, the government's obstructionist stance will provide little grounds for compromise with the opposition, setting the stage for a period of legislative gridlock in a fragmented Congress.

Source: Argentina: Country outlook

Source: Country Forecast Argentina May 2009

Source: EIU Country Data