Menem began his presidency assuming a non-confrontational approach, appointing people from the conservative opposition, and business people to his cabinet.
To prevent successful legal cases against the projected privatizations, the Supreme Court's numbers were increased from five to nine judges; the new judges ruled in support of Menem and usually had the majority.
Other institutions that restrained or limited executive power were controlled as well.
When Congress resisted some of his proposals, he used the Necessity and Urgency Decree as an alternative to send bills to it.
He even considered it feasible to dissolve Congress and rule by decree, but this step was never implemented.
In addition, he developed a bon vivant lifestyle, taking advantage of his authority.
For instance, he made a journey from Buenos Aires to Pinamar driving a Ferrari Testarossa in less than two hours, violating speed limits.
He divorced his wife Zulema Yoma and expanded the Quinta de Olivos presidential residence with a golf course, a small zoo, servants, barber, and even a buffoon.

The swiftgate scandal broke out in 1990, as American investors were damaged by a case of corruption, and asked for assistance from the United States' Ambassador Terence Todman.
Most of the ministers resigned as a result of it.
Cavallo was reassigned as minister of economy, and his successful economic plan turned him into a prominent figure in Menem's cabinet.
Cavallo brought a number of independent economists to the cabinet, and Menem supported him by replacing Peronist politicians.
Both teams complemented each other.
Both Menem and Cavallo tried to be recognized as the designer of the convertibility plan.

Antonio Cafiero, a rival of Menem in the PJ, was unable to amend the constitution of the Buenos Aires province to run for a re-election.
Duhalde stepped down from the vice presidency and became the new governor in the 1991 elections, turning the province into a powerful bastion.
Menem also selected famous people with no political background to run for office in those elections including the singer Palito Ortega and racing driver Carlos Reutemann.
The elections were a big success for the PJ.
After these elections, all of the PJ was aligned with Menem's leadership, with the exception of a small number of legislators known as the "Group of Eight".
The opposition from the UCR was minimal, as the party was still discredited by the 1989 crisis.
With such political influence, Menem began his proposal to amend the constitution to allow a re-election.
The party did not have the required super majority in the Congress to call for it.
The PJ was divided, as other politicians intended to replace Menem in 1995, or negotiate their support.
The UCR was divided as well, as Alfonsín opposed the proposal, but governors Angeloz and Massaccesi were open for negotiations.
The victory in the 1993 elections strengthened his proposal, which was approved by the Senate.
Menem called for a non-binding referendum on the proposal, to increase pressure on the radical deputies.
He also sent a bill to the Congress to modify the majority requirements.
Alfonsín met with Menem and agreed to support the proposal in exchange for amendments that would place limits on presidential power.
This negotiation is known as the Pact of Olivos.
The capital city of Buenos Aires would be allowed to elect its own chief of government.
Presidential elections would use a system of ballotage, and the president could only be re-elected once.
The electoral college was abolished, replaced by direct elections.
The provinces would be allowed to elect a third senator; two for the majority party and one for the first minority.
The Council of Magistracy of the Nation would have the power to propose new judges, and the Necessity and Urgency Decrees would have a reduced scope.

Despite of the internal opposition of Fernando de la Rúa, Alfonsín got his party to approve the pact.
He reasoned that Menem would be supported by the eventual referendum, that many legislators would turn to his side, and he would eventually be able to amen
Menem began his presidency assuming a non-confrontational approach, appointing people from the conservative opposition, and business people to his cabinet. To prevent successful legal cases against the projected privatizations, the Supreme Court's numbers were increased from five to nine judges; the new judges ruled in support of Menem and usually had the majority. Other institutions that restrained or limited executive power were controlled as well. When Congress resisted some of his proposals, he used the Necessity and Urgency Decree as an alternative to send bills to it. He even considered it feasible to dissolve Congress and rule by decree, but this step was never implemented. In addition, he developed a bon vivant lifestyle, taking advantage of his authority. For instance, he made a journey from Buenos Aires to Pinamar driving a Ferrari Testarossa in less than two hours, violating speed limits. He divorced his wife Zulema Yoma and expanded the Quinta de Olivos presidential residence with a golf course, a small zoo, servants, barber, and even a buffoon.
The swiftgate scandal broke out in 1990, as American investors were damaged by a case of corruption, and asked for assistance from the United States' Ambassador Terence Todman. Most of the ministers resigned as a result of it. Cavallo was reassigned as minister of economy, and his successful economic plan turned him into a prominent figure in Menem's cabinet. Cavallo brought a number of independent economists to the cabinet, and Menem supported him by replacing Peronist politicians. Both teams complemented each other. Both Menem and Cavallo tried to be recognized as the designer of the convertibility plan.
Antonio Cafiero, a rival of Menem in the PJ, was unable to amend the constitution of the Buenos Aires province to run for a re-election. Duhalde stepped down from the vice presidency and became the new governor in the 1991 elections, turning the province into a powerful bastion. Menem also selected famous people with no political background to run for office in those elections including the singer Palito Ortega and racing driver Carlos Reutemann. The elections were a big success for the PJ. After these elections, all of the PJ was aligned with Menem's leadership, with the exception of a small number of legislators known as the "Group of Eight". The opposition from the UCR was minimal, as the party was still discredited by the 1989 crisis. With such political influence, Menem began his proposal to amend the constitution to allow a re-election. The party did not have the required super majority in the Congress to call for it. The PJ was divided, as other politicians intended to replace Menem in 1995, or negotiate their support. The UCR was divided as well, as Alfonsín opposed the proposal, but governors Angeloz and Massaccesi were open for negotiations. The victory in the 1993 elections strengthened his proposal, which was approved by the Senate. Menem called for a non-binding referendum on the proposal, to increase pressure on the radical deputies. He also sent a bill to the Congress to modify the majority requirements. Alfonsín met with Menem and agreed to support the proposal in exchange for amendments that would place limits on presidential power. This negotiation is known as the Pact of Olivos. The capital city of Buenos Aires would be allowed to elect its own chief of government. Presidential elections would use a system of ballotage, and the president could only be re-elected once. The electoral college was abolished, replaced by direct elections. The provinces would be allowed to elect a third senator; two for the majority party and one for the first minority. The Council of Magistracy of the Nation would have the power to propose new judges, and the Necessity and Urgency Decrees would have a reduced scope.
Despite of the internal opposition of Fernando de la Rúa, Alfonsín got his party to approve the pact. He reasoned that Menem would be supported by the eventual referendum, that many legislators would turn to his side, and he would eventually be able to amen
Carlos Menem