Business Maverick: Cash-Strapped Argentina Goes All or Nothing on New Economy Chief

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With inflation approaching 100%, Argentina’s government has bet its political future on a seasoned operator with presidential ambitions, but no economic policy experience, to steer the country out of its latest crisis.

Economy Minister Sergio Massa, who took the job last month, scored some early wins after a week in Washington, landing more financing from the Inter-American Development Bank and speaking briefly on Monday with US Treasury Secretary Janet Yellen, a high-level encounter his predecessors struggled to get. IMF Managing Director Kristalina Georgieva praised Massa’s “strong steps” to stabilize the economy after a separate meeting.

If Massa, Argentina’s fifth economy minister in four years, can pull off this difficult balancing act, he’ll be a presidential contender in the 2023 election. But if the nation suffers a full-blown crisis with galloping inflation, his political future will be hard to salvage, and the government will struggle to retain power.

He also enjoys Kirchner’s tacit support for now, according to one lawmaker familiar with her thinking. Massa considers a photo he took with the vice president when he became minister a signal that she won’t get in his way, according to a person with direct knowledge.Massa was Kirchner’s cabinet chief for part of her presidency, before abandoning her administration to form a new party and run for president in 2015 against Kirchner’s candidate.

But Fernandez ultimately caved after his hand-picked minister, Martin Guzman, abruptly resigned in July and his replacement, Silvina Batakis, lasted just three weeks. Massa had insisted with Fernandez on overhauling the economic team for several months, according to four people, leading to the local press dubbing him a “super minister” after consolidating the economy, production and agriculture offices under one roof.

 

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