Weekly Report - 07 June 2018 (WR-18-22)

The government led by President Mauricio Macri has come under pressure from all sides as it continues to struggle to convince Argentines, financial markets, and the international community that its economic policies are sound and can fix the country’s current economic problems. The government’s inability to reduce inflation, its insistence on maintaining its plans to increase utility tariffs to help reduce the fiscal deficit, and its controversial decision to seek financial assistance from the International Monetary Fund (IMF) has produced significant political tensions and is once again leading to widespread public discontent. In this scenario, the Macri administration will need to rely on its ability to cut political deals to ensure governability.