President Peron of Argentina went on television on Wednesday night (12 June) and threatened to resign over divisions in his governing Peronista movement.
President Peron of Argentina went on television on Wednesday night (12 June) and threatened to resign over divisions in his governing Peronista movement. His statement sparked massive demonstrations of support for the President from the people, who flocked to a square outside Government House. He later withdrew his offer to resign and also refused to accept the resignation of his Cabinet. The members has put in their resignations to show support for the President.
The crisis came over opposition to the Government's controversial economic policies. Peron's Government has decided to get tough in defending a pact it signed with the trade unions and employers on holding down prices and incomes. Cracks in the pact widened since it was signed. Essential foodstuffs and household goods have become scarce due to hoarding by producers protesting against artificially-low prices, and groups of workers began striking for pay rises higher than the level imposed under the pact.
The crisis came to a head on Wednesday, President Paron told his people he would leave office if he had lost their confidence. His Cabinet agreed to do the same. But the massive support shown by the people of Buenos Aires ended the crisis.
SYNOPSIS: The first major crisis since President Peron returned to power in Argentina eight months ago came to a head on Wednesday night. The President went on television to tell the people he would resign if he had lost their support. The Cabinet also tendered its resignations. His threat to resign sparked off massive demonstrations in his favour.
Thousands of Peronist supporters marched through Buenos Aires chanting their loyalty to their leader.
The crisis was provoked by widening gaps in the controversial pact signed between the Government, employers and workers. It was designed to cut inflation by holding down prices and incomes. Lately there has bene hoarding of basic foodstuffs and household goods -- and some workers have gone on strike to demand more wages than allowed under the pact.
The crowd gathered outside Government House and the President told them that their act of support had made him change his mind. He, and his Cabinet, would stay in power and take a hard line to enforce the pact.