The administration of Argentina’s President Javier Milei resurrected the country’s interior ministry on Wednesday in a bid to build alliances with opposition governors days after his party lost by a landslide in a key provincial election. It was a rare instance of the radical libertarian outsider prioritizing his political needs over his cost-cutting crusade.
The reopening of the ministry comes as Milei’s La Libertad Avanza party scrambles to shore up its diminished cross-aisle support ahead of national midterm elections. The makeup of the Congress to be elected in October will prove pivotal for the president’s continued overhaul of Argentina’s crisis-stricken economy.
He downgraded the crucial Ministry of Interior — which historically manages often tense relationships between the Buenos Aires-based federal government and Argentina’s 23 provinces — to a secretariat.
Francos announced the new interior minister would be Lisandro Catalán, a low-profile technocrat who served in the past two governments, both center-right and center-left.
He said Catalán would lead what he called a “federal roundtable” aimed at rebuilding the government’s fractured ties with state governors who hold sway over lawmakers from their provinces.
Milei’s spending cuts have tamed Argentina’s severe inflation and thrilled international investors but also depressed economic activity and pushed up the country’s unemployment rate.
The victory in Buenos Aires province for Argentina’s Peronist opposition — which stoked fears about the president’s standing with voters — sent Argentina’s bonds, stocks and currency tumbling. The Peronists, who were defeated by Milei in 2023 presidential elections, are best remembered on Wall Street for defaulting on sovereign debt and heavy-handed interventions in the economy.
In accepting his party’s humiliating 13-point loss to Peronism in Buenos Aires province, Milei vowed not to abandon his free market overhaul. But he acknowledged making political mistakes and promised a period of “deep self-criticism.”
Milei appeared to move toward that goal on Wednesday with the reopening of the Interior Ministry. His administration said it would reach out to moderate governors from the opposition Peronist movement and former President Mauricio Macri’s conservative PRO party.
Posted by John3262005
1 Comment
If this electoral defeat can cause Milei to moderate on his policies not related to the economy, I think it’s ultimately a good thing. Toning down his corruption, regressive social views, and reckless slashing of certain governmental services while keeping the fiscal and economic responsibility is probably the best outcome for Argentina at the moment.