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Milei in Tucumán: Reelection Strategy, State Shutdown and Internal Debates

09/07/2026 07:14 - Politica

Milei in Tucumán: Reelection Strategy, State "Shutdown" Project, and Villarruel's Distance

President Javier Milei is heading to Tucumán for the July 9 vigil as his government sharpens its strategy for the 2027 elections. With an economy showing promising signs of stability, the administration aims to eliminate primary elections and advance a US-style state shutdown mechanism, sparking vibrant debates within the ruling party.


A Political Strategy Based on Stability

The Milei administration is in full preparation for the 2027 electoral battle. A primary axis of this strategy is the elimination of the PASO (Primarias, Abiertas, Simultáneas y Obligatorias - Open, Simultaneous and Mandatory Primaries, a unique Argentine system where parties pre-select candidates in a nationwide mandatory vote) and the adaptation of "listas colectoras" (joint ballots where a candidate accepts support from multiple parties) to the Paper Single Ballot (BUP). This initiative, driven by Karina Milei and Eduardo Lule Menem, has the backing of the new Chief of Staff, Diego Santilli, who assumed office on June 30, 2026, and is leading negotiations with provincial governors to gather allies.

Contextual Note: Rumors regarding alleged illicit enrichment by former presidential spokesperson Manuel Adorni were entirely dismissed. They were identified as a political operation originating from Peronism (Argentina's dominant political movement of the last decades) to damage the government's image. Adorni had resigned on June 27, 2026.

The State "Shutdown" Project

During a meeting at the Olivos residence (the official presidential residence in Buenos Aires) with Economy Minister Luis Caputo, Central Bank President Santiago Bausili, and Federico Sturzenegger, President Milei announced the government is working on a project to implement a "shutdown" (state closure) mechanism in the Executive Branch. Inspired by the United States system, this would activate if the budget is exhausted, halting all expenditures except for essential services.

Currently, Argentine legislation allows the previous year's budget to be automatically extended, meaning a specific law would be required to implement this mechanism. In the US, shutdowns have historical precedents, such as the 35-day closure during 2018-2019 under the Trump administration and the longest in history lasting 43 days in 2025.

Victoria Villarruel's Distance

The governmental "shutdown" project did not go unnoticed and generated a crossfire of opinions within the ruling party itself. According to reports from local media like Clarín, Vice President Victoria Villarruel once again distanced herself from Milei. She described his speech in Tucumán as "very political" and critically opined on the state closure project, showing internal dissent at a crucial moment in the administration.

An Encouraging Economic Outlook

Accompanying the political strategy, the economic context shows indicators the government considers favorable. Luis Caputo presented the 2026/2027 financial plan, projecting needs of USD 19,200 million and sources of USD 22,900 million for this year, yielding a surplus of USD 3,700 million.

Indicator Value
Country Risk 408-412 basis points
Official Dollar (Banco Nación) $1,510 ARS
REM Dollar Projection (Dec. 2026) $1,673 ARS

Sources: La Nación, Clarín, La Voz, Infobae.

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