The elections—for half of the lower house and a third of the Senate—are an important test for Fernandez, who has seen her popularity plunge since she succeeded her husband Nestor Kirchner to the presidency 15 months ago.
Fernandez said she would send a bill to Congress Monday to change electoral laws. The mid-term elections had been scheduled for Oct. 25.
"This isn't about backing away from the electoral contest, please," Fernandez said in a televised speech. "But we can't have a constant stream of elections from now until October ... amid this phenomenal crisis."
Critics said the center-left president wanted to change the election date out of fear her allies in Congress would be defeated as the worldwide downturn takes its toll on Latin America's No. 3 economy.
"I think they've done this because they're scared the impact of the global crisis will be greater in October than it is at the moment," said political analyst Graciela Romer.
A messy farming dispute has weakened Fernandez's administration and Argentina's economy has been slowing after six years of robust growth, although it has not yet suffered the mass layoffs and banking turmoil seen elsewhere.
Reasons Fernandez Sought Early Vote
There are many possible reasons and possible implications of the decision seeking to move up the balloting to renew half of the lower house and a third of the senate.
◊—Fernandez, who is struggling with 30 percent approval ratings and a political challenge from farmers angry over export taxes, said it was crucial to carry out the vote as early as possible so political leaders can focus their attention on any fallout from the global financial crisis.
◊—Fernandez enjoys majorities in both the lower house and the senate, and the bill is likely to win support from allies looking to hold on to their seats in a shortened campaign.
◊—After six years of red-hot growth, Argentina's economy is showing signs of slowing, threatening Fernandez's biggest political asset. An early election will make it more difficult for the fragmented opposition, which has begun to stitch together alliances ahead of elections, to capitalize politically on any continued deterioration of the economy.
◊—Fernandez has been locked in a protracted standoff with farmers. Opposition leaders who back the farmers say they plan to present a bill next week in Congress aimed at lowering soy export taxes. The opposition lacks the necessary votes to bring the bill to a vote but is seeking to win over rural lawmakers from the ruling Peronist party. Fernandez's surprise move shifts legislative priorities to her proposal, potentially postponing any effort to modify export taxes.
◊—The government's move follows a defeat of Fernandez allies in a recent provincial vote, and also comes after her coalition suffered several high-profile defections by lawmakers complaining about her handling of the farmer conflict and governing style. An early election would intensify government spending and bolster allies, perhaps preventing further defections.
◊—The global crisis has curbed demand for Argentina's commodity exports and consumer spending. Investor confidence has also slumped after Fernandez's decision to nationalize the country's private pension funds last year. Her decision to bring the elections forward could add to investor worries over the government's unpredictability.
