MEDIA REACTION: STATE OF THE UNION EXPECTED TO FOCUS ON

UNCLAS BUENOS AIRES 000080 SIPDIS STATE FOR INR/R/MR, I/GWHA, WHA, WHA/PDA, WHA/BSC, WHA/EPSC CDR USSOCOM FOR J-2 IAD/LAMA E.O. 12958: N/A TAGS: OPRC KPAO KMDR PREL HA AR SUBJECT: MEDIA REACTION: STATE OF THE UNION EXPECTED TO FOCUS ON ECONOMIC ISSUES; 1/27/10; BUENOS AIRES SUMMARY -------------- ¶1. Argentine media expects President Obama's State of the Union address to focus on domestic economic policies. Articles opine that the Obama administration seeks to regain leadership and increase support from middle-class and independent voters. The press is anticipating important announcements, including substantial budget cuts and tightened financial regulations. Media also is reporting the U.S. will preserve current levels of health care and military spending. End summary. RECAPTURING THE MIDDLE-CLASS AND INDEPENDENT VOTES -------------- -------------- ¶2. Argentina's second largest newspaper La Nacion expects President Obama to deliver a "clear message" directed at the "average American" and the "middle class." The daily-of-record notes growing domestic pressure on the Obama administration, which is significantly "losing popularity" and key support from independent voters who showed their dissatisfaction by voting against the Democratic candidate in the Massachusetts Senate election. La Nacion also noted the increasingly influential "Tea Party" movement that opposes many of the President's domestic policies. http://www.lanacion.com.ar/nota.asp?nota_id=1 226327 ¶3. Clarin reports that recent survey results showed many Americans are "upset" with President Obama's failure to address unemployment and the economy. The article adds that Obama is seeking to go forward with a series of measures to "improve the critical situation facing the middle-class." http://www.clarin.com/diario/2010/01/27/elmun do/i-02127794.htm BUDGET CHOPPING -------------- ¶4. Conservative financial daily Ambito Financiero says budget cuts will only affect programs with flexible budgets. The President will also announce measures to improve the efficiency of existing government programs, as well as salary reductions for government workers earning more than USD 100,000 yearly. http://www.infobae.com/mundo/497560-601275-0- Obama-congelar%C3%A1-s alarios-funcionarios-la-Casa-Blanca ¶5. La Nacion notes that "Obama faces a paradox, as he needs to reach a balance between budget cuts and the satisfaction of social goals." The newspaper's Washington correspondent expects this balance to face significant opposition and require negotiations in the Senate, where the Democrats just recently lost their "automatic majority." Yet this could be made more difficult as reports indicate that President Obama wishes to maintain current spending levels on Homeland Security, defense, and health care. Nonetheless, La Nacion quotes Deputy Director of the Office of Management and Budget Rob Nabors commenting that main objectives of the Administration "have not been modified," but that it will take longer than expected to reach many goals. http://www.lanacion.com.ar/nota.asp?nota_id=1 226327 ¶6. Clarin is also highlighting the controversy over the President's budget from both major political parties. Expressing dismay over the budget, Republican Party National Chairman Michael Steel states the budget cuts are "insufficient" and "too late." The newspaper also notes that the conservative branches of the Democratic Party have hailed the budget cuts, but nonetheless are facing the opposition from most progressive sectors. http://www.clarin.com/diario/2010/01/27/elmun do/i-02127794.htm To see more Buenos Aires reporting, visit out classified website at: http://www.state.sqov.gov/p/wha/buenosaires MARTINEZ