The 10 March gubernatorial election in Argentina’s Neuquén province, the opening contest of this general election year, produced a re-election victory for the incumbent governor, Omar Gutiérrez. While this outcome may suggest that the Neuquén electorate is content with the status quo, the country’s main political parties are trying to interpret what it means for the national poll due to take place in October. Given that Gutiérrez stood for the regional party, the Movimiento Popular Neuquino (MPN), and defeated candidates from the main national political parties, accurately interpreting the result is difficult and yet it is already having repercussions.
The south-western Patagonian province of Neuquén may not be among Argentina’s most populous electoral districts. But by being the first province to hold elections this year it has attracted significant attention as the main political parties fielded candidates in the hopes of securing a win that would help to gain momentum ahead of October. The fact that Neuquén is also home to the vast ‘Vaca Muerta’ shale hydrocarbon deposit, the development of which is widely seen as affording Argentina a once-in-a-lifetime economic windfall, also gave the election added relevance and ensured that it was closely watched by international markets.
The national centre-right Cambiemos coalition government led by President Mauricio Macri has been clear that it wants to promote the development of Vaca Muerta with the help of private domestic and foreign companies. In contrast, the main opposition Partido Justicialista (PJ, Peronists), and in particular the hard-line Kirchnerista faction, is reluctant to allow foreign firms to freely exploit Vaca Muerta and would prefer for it to remain under some sort of state control. Pointedly, this was why the previous Kirchnerista administrations led by former president Cristina Fernández (2007-2015) were unable to exploit the deposit. With Fernández widely expected to launch a new presidential bid this year, there were fears that victory for a Kirchnerista candidate in Neuquén would drive away potential Vaca Muerta investors.
These fears were fanned by opinion polls putting Gutiérrez in a technical tie with the PJ gubernatorial candidate, Ramón Rioseco, a member of Fernández’s new Unidad Ciudadana movement, and the Cambiemos candidate, Horacio ‘Pechi’ Quiroga. But in the event, Gutiérrez won convincingly after obtaining 39.5% of the valid vote followed by Rioseco on 26.1% and Quiroga on 15.3%. Gutiérrez and the MPN, which has ruled Neuquén since 1963, are supportive of the Macri government’s plans to promote the development of Vaca Muerta. Indeed, Gutiérrez has developed a good working relationship with the Macri administration. This led some analysts to suggest that the Neuquén election was a positive outcome for the Macri executive even if Cambiemos failed to capture the province.
The re-elected governor of Neuquén is a lifelong member of the MPN, which was founded in 1961 by a group of local mayors led by Amado Sapag after they decided to break away from Peronism. After winning the 1963 gubernatorial election, the MPN has retained the governorship with the Sapag family or their close allies always at the helm. Gutiérrez himself served as economy minister under former governor Jorge Sapag (2007-2015), who chose him as his successor. Since then Omar Gutiérrez has established a good working relationship with President Macri over his efforts to promote the development of Vaca Muerta and to restore macroeconomic stability through the reduction of fiscal deficits at the provincial and federal level.
Gutiérrez’s electoral win not only ensures continued support from the provincial government for the development of Vaca Muerta but by denying Kirchnerismo victory it helps dampen the prospects of Fernández’s return to power (Fernández actively campaigned for Rioseco). Rioseco received fewer votes than in the 2015 election when he obtained 28.8%. This suggests that support for Kirchnerismo and its policies have fallen, in Neuquén at least, since the last general election when Macri and Cambiemos prevailed.
On the downside for Macri and Cambiemos, the share of the vote enjoyed by its candidate also fell, raising questions about the relative level of support that the ruling coalition now enjoys after almost four years in power. The poor showing by Quiroga, the incumbent mayor of Neuquén’s eponymous capital, has been attributed to the growing disillusionment with the Macri government and its failure to deliver on its promises to restore macroeconomic stability and return Argentina to stable economic growth. Pointedly, moderate PJ factions that act as a counterweight to Kirchnerismo have been encouraged by the Neuquén result. They believe that it shows there is an opportunity for a third political option outside of Kirchnerismo and Macrismo that could win over the Argentine electorate.
Indeed, in the wake of the Neuquén election Senator Miguel Ángel Pichetto, the moderate head of the PJ bench in the federal senate and a PJ presidential pre-candidate, highlighted the need for PJ moderates to seize on the message sent by the Neuquén electorate and unite behind a consensus presidential candidate in order to defeat Kirchnerismo and Macrismo. “The masks are starting to fall, support for Cristina [Fernández]’s candidacy does not surpass 25%,” Pichetto said alluding to the Neuquén result. Pichetto went on to argue that “Peronism must reinvent itself” and that the aim of the party, and in particular its moderates, must be to secure the votes of those wanting something different. “Polls show that 45% want to vote for something else, not for continuity under Macri and not for returning to the past with the former president [Fernández],” he said.
However, the first repercussions have been felt within Cambiemos. Following Quiroga’s defeat, his party – the Unión Cívica Radical (UCR), a junior Cambiemos partner – complained that his prospects had been hurt by a lack of support from the federal government and the negative impact that the economic adjustment policies are having on the general population. The discontent within the UCR, which has disagreed with some of the economic policy decisions taken by the Macri government, was such that on 11 March it was announced that the negotiations between the UCR and Macri’s Propuesta Republicana (PRO) for selecting a consensus candidate ahead of the 12 May gubernatorial elections in Córdoba province had broken down and that the UCR and the PRO would now each field their own candidates.
The breakdown of the Cambiemos alliance in Córdoba came after the UCR gubernatorial pre-candidate, Ramón Mestre, accused the Macri executive of trying to impose the candidacy of UCR national deputy Mario Negri, the head of the Cambiemos bench in the federal chamber of deputies. But the local UCR leadership refused to accept this and announced that it would register Mestre, who has already served as Córdoba governor (1995-1999), as its candidate. Meanwhile Negri has said that he will run on a PRO ticket.
The Cambiemos split in Córdoba is worrisome for the ruling coalition and Macri’s presumptive re-election bid. Córdoba is Argentina’s second-largest electoral district, and a poor showing there would raise serious doubts over his chances of retaining the presidency (Macri carried Córdoba in the 2015 election, a result that at the time was seen as key). Moreover, the split has also exposed the growing divisions between the PRO and the UCR, with Mestre mooting the possibility of the UCR not backing Macri’s re-election bid. While the next gubernatorial election is in Río Negro on 7 April, the Córdoba election now looks like a critical test for Macri’s re-election hopes and yet the chances of it producing a positive outcome for the whole of Cambiemos now looks bleaker.
Following the announcement that he will be the UCR’s gubernatorial candidate in Córdoba, Ramón Mestre said in a 13 March interview with the local press that he was “hurt” by the breakdown of the electoral alliance with the PRO but insisted that he simply could not accept the imposition of Mario Negri’s candidacy. According to Mestre the breakdown in the talks came after Negri refused to take part in an internal primary to decide who the candidate should be. Accusing the PRO of being “ungrateful” to the UCR, Mestre, who was one of the leading advocates for the creation of the Cambiemos alliance in 2014, said that the UCR must now carefully consider whether to back a Macri re-election bid.
Macri reaches out to agricultural sector
In order to improve his chances of winning re-election, President Macri knows that he must try to retain the support of the country’s influential economic sectors. A clear sign of this was his decision to attend the ExpoAgro, the agro-industrial sector’s national exposition, on 13 March.
While initially supportive of the Macri administration, Argentina’s influential agricultural sector has been losing faith in Macri due to the dismal performance of the domestic economy following the implementation of Macri’s economic adjustment programme, and Macri’s failure to live up to his promise to eliminate the contentious retention tax on agricultural exports. Notably, Macri addressed this during his 12-minute speech at the ExpoAgro. He reiterated that in his view the retention tax is a “bad tax” but that his government simply had to retain it as an “emergency measure” to shore up the public finances.
Then, in an attempt to mend fences with the agricultural sector, Macri announced three new measures in support of the sector: the opening of two new credit lines for the purchase of agricultural machinery with the state-owned investment and foreign trade bank (Bice); the extension of the ‘Cosecha Segura’ (‘safe harvest’) crop insurance programme; and the provision of high-speed internet to rural areas.