Argentine leader shakes up Cabinet

BUENOS AIRES -- Argentine President Cristina Fernandez reshuffled her Cabinet on Tuesday, but the shake-up suggests few policy changes as she attempts to shore up her government after a crushing defeat in a mid-term vote.

The reshuffle came as opposition leaders stepped up calls for changes in her top aides after she lost her majority in Congress in the June 28 congressional election, which was seen as a referendum on her turbulent presidency.

“It's musical chairs,” said Federico Thomsen, an Argentine political and economic analyst. “It does signal Fernandez felt something had to change, but none of the appointees is new.”

Fernandez named Anibal Fernandez, currently the justice minister and not related to her, as Cabinet chief. He is a confidant of the Argentine leader's husband, former President Nestor Kirchner, who is widely seen as co-running the government.

Amado Boudou, the head of the country's state pension agency, was appointed economy minister and takes office as Latin America's No. 3 economy cools after a six-year boom.

Fernandez's popularity ratings have plummeted as she struggles with a slowing economy, high inflation and a long-running battle with farmers over export taxes.

Although official figures show the economy is still growing slowly, the data is widely seen as overly rosy. Private estimates forecast an economic contraction this year, with unemployment rising as car, steel and construction output slump.

Boudou replaces Carlos Fernandez, who analysts said had a minor role in shaping economic policy that is largely determined by the Kirchners.

Boudou presided over the state pensions agency after Fernandez nationalized Argentina's private pension funds last year, but he is seen as someone who answers to the presidential pair rather than an influential figure in his own right.

Fernandez retained one of her most controversial Cabinet members, Domestic Commerce Secretary Guillermo Moreno, who is accused of manipulating the country's economic data and being the chief enforcer of the government's unorthodox anti-inflation policies.

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Comments
July 10, 2009    mousereese@
A local news article this morning shows why there is political confusion in Argentina. Even the government officials cannot tell the same story.

"Newly appointed Cabinet Chief Anibal Fernandez said President Cristina Fernandez de Kirchner's decision to make changes in the cabinet had nothing to do with the election results. Also, he stated that farmers or Eduardo Duhalde might be part of the dialogue proposed by the president.

However, CFK herself said in a post-election press conference that there was no need for a cabinet reshuffle, something she has undoubtedly done.

Fernandez made these declarations after arriving in Buenos Aires City from Tucuman province, where he accompanied the president during the celebration of the country's independence. Among other things, CFK said a political reform to be debated by every sector was necessary in order to continue. The opposition agreed to this, although they recognized that a true dialogue was not the president's top priority."

Buenos Aires
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