By Guido Di Tella
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Extra info for Argentina under Perón, 1973–76: The Nation’s Experience with a Labour-based Government
They even began to support, in a none-too-veiled manner, a military coup. The Radicals, who had a somewhat similar social base, were in a sense more dangerous to the Peronist leadership than the military, who had no popular support whatsoever and had no alternative but to negotiate with the unions. This new line was supported among Peronists by imputing to the military 'nationalist' and even 'populist' attitudes, a survival from the 1944-55 period. At the end, the Radicals had the opposition of labour and the opposition of the business and propertied groups, and of quite a few intellectuals, particularly of the 'developmentalist' school.
It was clear that despite 'the deep disagreement between their points of view . . a dialogue is going on between the Government and the CGT, a dialogue which has a political implication' (La Naci6n, 2 July 1961). During Frondizi's period there was a recognition of the role of the trade unions - the CGT being 'normalised' in 1961 -and a certain legitimation of the Peronist movement as a de facto power, although it always remained on the fringe. In 1961, the Government tried its hand in several provincial byelections.
This distrust was compounded by the increasing economic troubles, particularly the renewal of inflation. THE MILITARY WITHDRAWAL The substitution of Levingston for Lanusse was the final blow to any remaining expectations of a long stay by the military. The lack of confidence in the durability of the Government aggravated some of the problems in the economic sphere. The Ministry of Economy was dissolved, leading to a serious lack of co-ordination. This problem was compounded by the new open-handed and incoherent economic policy of the Treasury, headed by Juan Quilici, which tripled the fiscal deficit from the low levels reached previously- 2 per cent in 1968-70- 42 Argentina under Peron to about 6 per cent.