VZCZCXYZ0002
OO RUEHWEB

DE RUEHBU #0080/01 0272047
ZNR UUUUU ZZH
O R 272045Z JAN 10
FM AMEMBASSY BUENOS AIRES
TO RUEHC/SECSTATE WASHDC IMMEDIATE 0382
INFO RHMCSUU/CDR USSOCOM MACDILL AFB FL
RUEHBU/AMEMBASSY BUENOS AIRES

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 
 
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¶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