In a recent event in Tucumán, Argentine President Javier Milei signed the ‘May Pact’ with 18 provincial leaders, including some Peronist governors. The pact outlined 10 points as part of the president’s strategy to re-found the nation. While the points may seem commonsensical, they were developed by the President and his aides, showcasing a lack of consensus among the political divide. The President’s reliance on a strong communications strategy has become imperative, especially as tensions in financial markets have led to a continued erosion in the value of the currency. Emergency measures were unveiled to intervene in currency markets but failed to instill confidence among economic actors.
During the signing of the May Pact, President Milei focused on ideological and theoretical frameworks, with an emphasis on the inviolability of private property. While the document mostly references economic situations, it includes a point on education added at the insistence of UCR governors. The provincial leaders exhibited pragmatism during the signing, reminiscent of their behavior during legislative discussions. However, the moment of triumph was met with opposition from Governor Axel Kicillof, who leads a faction within the Peronist front that is still recovering from a tough electoral defeat.
Kicillof’s opposition reflects a larger strategy within the Peronist front to push back against anything associated with Milei. This was evident in Congress, where Peronists, UCR members, and centrist factions collaborated on a new pension and retirement plan that Milei vowed to veto. However, the administration’s alliance with sections of Juntos por el Cambio secured the passage of the ‘Ley de Bases’ and fiscal package in both chambers. The signing of the May Pact in July was followed by a military parade in Buenos Aires, signaling the government’s intention to prioritize military interests.
The Milei administration faces economic challenges, including a deep recession and elevated inflation. While austerity measures have helped stabilize inflation, the economy continues to struggle. The President’s technical explanations and economic plan have faced criticism from economists and the population, raising concerns about the sustainability of the current model. Despite retaining popularity, there are signs that the administration’s approach may be losing momentum. The future of Argentina’s economy and political landscape remains uncertain, as society grapples with the impact of ongoing fiscal adjustments and economic downturns.
