Argentina: Protesters clash with police over spending cuts [View all]

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Last edited Thu Oct 25, 2018, 12:14 AM - Edit history (1)

Police in Argentina police fired rubber bullets, tear gas and water cannon at protesters who marched Wednesday in Buenos Aires against the government's 2019 budget bill, which contains steep spending cuts amid a severe recession.

Thousands of activists led by teachers, social organizations and leftist groups opposed to President Mauricio Macri's austerity measures gathered in front of Congress.

While most had gathered peacefully, small groups of hooded men threw rocks at police. Protesters denounced the hooded individuals as provocateurs.

They note that none were detained, that photos show them arriving as if trained, that piles of rocks had been left the night before, and that police can be seen attempting to plant a jimmy beside journalist Francisco Pandolfi while he was held down.

"One of them dropped his bandana, and has been identified as Police Sergent Héctor Olivera," opposition Congressman Leopoldo Moreau said.

Thirty were detained, and 13 were reported injured. Among the detained were several journalists - including one, Nacho Levy, who was shot.

Heated debate

Debate began in the Lower House of Congress at noon when the 106 legislators in Macri's right-wing "Let's Change" caucus were joined by 23 others to give the plenary session a razor-thin quorum of 129 to 128.

Lawmakers inside the capitol building argued loudly over sticking points, at times disregarding calls for order.

The Let's Change caucus leader, Nicolás Massot, 34, had to be restrained at one point from attacking Congressman Moreau, who is 71.

IMF bailout, IMF budget

The budget contains nearly $10 billion in cuts to federal spending (8% of the total) aimed at cutting fiscal deficits from 6% of GDP in 2017, to 2.7% this year, and to zero in 2019.

Opponents note that budget cuts will exacerbate the recession while doing little to control the cause of the crisis: a record $31 billion current account deficit, plus $3 billion monthly in capital flight.

Macri has committed to balancing the budget at the behest of the IMF, which signed a $50 billion standby credit line with Argentina on June 8.

The $15 billion borrowed from the credit line on June 22 have been spent to cover capital flight, and while the IMF expanded the credit line to $57 billion on September 26 no fresh funds were released.

Macri sought the IMF bailout after a carry-trade debt dubble promoted in 2016-17 collapsed in April, since leading to a halving of the peso's value and a consequent jump of short-term interest rates from 27% to 74%.

Under Macri, public sector foreign debt ballooned from $84 billion in December 2015 to $181 billion as of June.

At: https://www.dw.com/en/argentina-protesters-clash-with-police-over-spending-cuts/a-46032522

Scene from today's protests in front of Argentina's Congress after Macri's caucus obtained a razor-thin quorum to debate the IMF-approved 2019 budget.

Opponents denounced the presence of hooded provocateurs, who were not pursued or detained. At least one hooded rock thrower has been identified as a police sargent.