Argentina Economy Minister Guzman Resigns as Divisions Grow

Argentine Economy Minister Martin Guzman resigned Saturday, marking the biggest departure of President Alberto Fernandez’s government after infighting within the ruling coalition escalated.

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(Bloomberg) — Argentine Economy Minister Martin Guzman resigned Saturday, marking the biggest departure of President Alberto Fernandez’s government after infighting within the ruling coalition escalated.

Guzman announced his decision in a seven-page letter published on Twitter. No replacement was immediately announced.

The minister has come under pressure as Argentines battle heightened inflation of more than 60%, following a surge in global food and energy prices. The shakeup also heightens doubts over whether Argentina can comply with an International Monetary Fund deal, whose goals and objectives for the second half of the year private economists view as too challenging for the government to reach. 

Guzman, a 39-year old Ivy League economist who conducted research at Columbia University by Nobel Prize winner Joseph Stiglitz, lost support this year from the far-left wing of the coalition controlled by Vice President Cristina Fernandez de Kirchner. Lawmakers loyal to her in Congress voted against the IMF agreement he negotiated, even though the financing for the deal was approved by the legislature with ample support.  

Complaints against Guzman billowed recently with Kirchner’s son, Maximo, a lawmaker in congress, calling out the minister in a speech.

(Updates with background)