Martin Lousteau resigns as Argentine Ambassador to the United States

The Ambassador of Argentina to the United States, Martín Lousteau, has resigned. His decision was communicated to Argentine President Mauricio Macri during a phone call on Monday at 4 p.m., and reportedly surprised the president.

His resignation comes a week after an investigation by the top-rated Argentine news program El Destape revealed that the Macri administration had made a formal request to the U.S. Government for approval of a purchase of over $2 billion in military equipment.

The request, the largest single Argentine military order since shortly before the ill-fated Falklands/Malvinas War waged by the last dictatorship in 1982, included fighter jets, tanks, missiles, missile launchers, attack helicopters, and a variety of munitions and other equipment typically used in a war theater.

It was reportedly made on June 16, 2016, through the offices of Ambassador Lousteau with the stated purpose of "combating terrorism." In the letter, Lousteau had sought the approval of Congressman Pete Visclosky, a senior Indiana Democrat and the Ranking Member on the Defense Appropriations Subcommittee.

The subcommittee and the U.S. Defense Department both approved the sale, and several helicopters and other materiel, El Destape found, has in fact already been purchased.

Political firestorm

The news created a political firestorm in Argentina not only for the secrecy with which the procurement was made; but for its price tag, which was far in excess of the budgeted request Macri presented to the Argentine Congress.

The outlay is being made at a time when subsidy cutbacks have forced utility rates up by up to 10-fold for consumers over the past year, while budget deficits continue to rise and the economy remains in its longest downturn since 2002.

Lousteau, who is expected to return to Argentina later this week, did not comment on specific reasons for his resignation. It's widely believed, however, that he intends to run for Congress this year, and possibly for mayor of Buenos Aires in 2019.

Polling shows the right-wing Macri, who appointed the more centrist Lousteau as ambassador within days of taking office 16 months ago, is increasingly unpopular even in his stronghold of Buenos Aires.

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