Fernandez wins in Argentina as Macri’s austerity rebuffed

Bloomberg

President-elect Alberto Fernandez will discuss the transition of power in Argentina with the defeated incumbent, Mauricio Macri, after an election in which voters opted for left-wing populism over pro-market policies to combat the country’s economic crisis.
Fernandez, a political insider who has never held national office, was expected to meet with Macri on Monday after sweeping to power in the presidential election with 48% of the vote to Macri’s 40%, enough to avoid a runoff.
The fragility of the economic situation Fernandez will inherit was reinforced overnight as the central bank announced tighter currency controls and Argentine bonds dropped in European trading.
Fernandez, who takes office on December 10, addressed jubilant supporters alongside his deputy, former president Cristina Fernandez de Kirchner, shortly after Macri offered his congratulations.
“Hopefully those who were our opponents during these four years are conscious of what they’re leaving behind and help us rebuild the country from the ashes,” said Fernandez.
The opposition win signals the return to national power of Peronism — an anti-elite political movement that traditionally favours workers over business owners. But while voters rejected the austerity of Macri’s government, the outcome was also tighter than expected, reflecting wariness about Fernandez’s ability to steer the economy through tricky waters.
Fernandez’s broad promises to improve things will run into immediate difficulty when he is sworn in, given a lack of funds to play with: The economy is contracting, inflation is above 50%, unemployment is more than 10% and a third of the population lives below the poverty line.