Weekly Report - 15 November 2018 (WR-18-45)

“Never has Argentina conducted an [economic] adjustment of such magnitude without the [incumbent] government falling.” With these words Argentina’ finance minister, Nicolás Dujovne, greeted the news that a version of the zero-deficit 2019 draft budget tabled by the government led by President Mauricio Macri had been given final approval by the opposition-controlled federal senate. Securing approval of the budget is a major political victory for the Macri government, meaning that it can fulfil the commitment it has made to the International Monetary Fund (IMF) to eliminate the fiscal deficit by next year. However, the austere budget, which includes deep government cuts, remains unpopular, and Macri and the centre-right ruling Cambiemos coalition will have to work hard to maintain public support from now until next October’s general election.