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29/10/2007 | Argentina- Fernandez tipped for presidency

Jude Webber

Argentines voted yesterday in polls expected to see first lady, Cristina Fernandez, elected by a comfortable majority - a reward to the leftist government of President Nestor Kirchner for lowering unemployment and delivering four years of economic growth of more than 8 per cent.

 

Ms Fernandez would be the country's first female elected head of state, although Argentina has been ruled by a woman before. Former President Juan Peron was succeeded by his third wife, known as Isabel, who served from 1974-76.

Polls put the 54-year-old senator, who has been a powerful behind-the-scenes adviser to Mr Kirchner, well ahead of her two nearest rivals, Elisa Carrio and Roberto Lavagna.

This despite high levels of voter apathy amid a lacklustre campaign.

Voting closes at 6pm local time (2100 GMT) and the first official results will be released later in the evening. Ms Fernandez will need more than 45 per cent of the vote, or 40 per cent with a 10-point lead, to avoid a run-off in November.

Mr Kirchner, who could have stood for a second term but decided his wife should run instead, was elected with 22 per cent of the vote in 2003 after former president Carlos Menem pulled out of a run-off.

Mr Kirchner's future role is unclear.

Ms Fernandez, a glamorous figure with her long hair, designer clothes and trademark bold make-up, has promised only gradual changes to the growth-orientated policies pursued since Argentina's $100bn debt default in 2002.

The next president is expected to seek to renegotiate $6bn  in Paris Club debt owed since then.

Helped by high commodities prices for Argentina's farm exports, Mr Kirchner has accumulated fiscal and trade surpluses, and record reserves to cushion against external shocks.

He has also kept the peso weak to help exporters while taxing them heavily to raise revenue.

Ms Fernandez would be under pressure to cut spending, ease a freeze on utilities tariffs that companies say is strangling their ability to invest in order to boost strained capacity, and tame inflation that private economists believe is double the official annual 8.6 per cent rate.

With economic growth widely expected to slow to 5.5 per cent next year, she has called for a "social pact" between businesses, the government and unions to boost growth and temper collective wage demands.

Union bosses are calling for pay rises of 30 per cent.

Financial Times (Reino Unido)

 


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