Weekly Report - 02 August 2012 (WR-12-30)

The governor of Buenos Aires, Daniel Scioli, was the first one forced to confront the federal administration of President Cristina Fernández [WR-12-26] over the redistribution of the so-called federal co-participation funds. Scioli’s government was simply unable to foot the increasing wage bill of public sector workers and entered the first round of what will be a drawn-out political battle with Fernández over the payment of the mid-year bonus (Aguinaldo). In reality, the power struggle is over control of the Partido Justicialista (PJ) ahead of the 2013 mid-term elections and the 2014 presidential vote; the example of what happens when Fernández is criticised by members of her own political party has served as a warning for other provincial leaders who are facing similar financial struggles.

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