Midterm elections
De Narváez backs nationalizations, shocks allies and foes
Lower House candidate Francisco De Narváez said in an interview published today that "certain companies that provide public services, such as water suppliers, energy and transport" should be managed by the state, in a change of course that came as a surprise both for his political contenders and his allies within the Unión-PRO.
His remarks came as a shock to the press and other members of the centre-right Unión-PRO, whose members, including businessmen De Narváez and the Mayor of the City of Buenos Aires Mauricio Macri, have repeatedly criticized the increasing intervention of the government in the private sector and the recent nationalization of airline Aerolíneas Argentinas. De Narváez last week said the airline should not have not been expropriated as it costs the state about four million dollars a day.
Former City Mayor Gabriela Michetti, who is currently leading the Unión-PRO Lower House ticket in the City, said she was "very surprised" after she heard about De Narvaez's assertions. However, she underplayed the political relevance of the subject claiming "the nationalization-privatization issue is not central in the political campaign."
Being asked about the possibility of the nationalization of electricity suppliers Edesur and Edenor, the Unión-PRO candidate supported an increased governmental intervention in those companies "to guarantee the service and the subsidized prices for consumers."
He went on to detail that "energy production should remain in the hands of private companies, but the supply to consumers should be managed by the state." De Narváez also said oil company YPF, which was privatized in the 90s and is currently managed by Spanish Repsol, should be nationalized to "control the prices of energy supplies."
De Narváez, who according to some polls is the front runner in the midterm elections in Buenos Aires province, said the main problem facing Argentina is "structural poverty," as he claimed 50 percent of the population is poor. According to the data of the INDEC statistics' bureau, 14.9 percent of Argentines fall under the line of poverty.
"We have to provide quality to public services, and that must be assured by the state," De Narváez concluded during the interview.
For his party, Buenos Aires Governor Daniel Scioli reacted harshly to the comments made by De Narváez, describing the remarks made by De Narváez as an electoral move. "It wouldn't surprise me if they promised a salary hike," the governor said.
"After they came aware of the criticism sparked by their recent defence of privatizations, now they are claiming everything should be nationalized. Its a desperate electoral move as they are trying to look better," she said.
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