12/07/2026 15:56 - Politica
On July 12, 2026, the administration of Javier Milei reactivated its electoral and economic strategy ahead of the 2027 presidential elections. The plan combines strict financial measures, political reforms, and a new diplomatic and technological bet to consolidate the country's growth.
Economy Minister Luis Caputo detailed the plan to cover debt maturities of US$24 billion until the end of 2027. To achieve this, the Argentine Central Bank (BCRA) refinanced US$6 billion with 10 banks through REPO operations, postponing maturities to 2028. This strategy successfully lowered Argentina's country risk to 400 basis points, its lowest level since April 2018.
Inflation in the City of Buenos Aires (CABA, the capital city) in June was 1.8%, and national inflation is projected at 2% for the same period. Additionally, the International Monetary Fund (IMF) projects a 3.5% growth for the Argentine economy, consolidating a trend of macroeconomic recovery and stability.
One of the boldest bets of the ruling party is the strategy called 'atom and energy diplomacy', based on the export of nuclear reactors. The main objective is to diversify the productive matrix, enter the high-tech league, and achieve the coveted 'investment grade', definitively leaving behind the 'junk bonds' category.
Context for Foreigners: 'Investment grade' is a credit rating indicating that a country has a low risk of defaulting on its debt. Achieving it allows access to international financing at lower interest rates. Currently, Argentina is considered 'junk' by rating agencies.
This strategy relies on close ties with the White House and U.S. President Donald Trump, as well as the very positive impression of the economic plan held by Luis Cubeddu, the IMF representative.
On the political front, the ruling party is pushing to eliminate the PASO (Open, Simultaneous and Mandatory Primaries). However, they lack the necessary votes: they need 37 senators but currently only have 21.
Context: PASO are primary elections where all parties participate simultaneously to elect their official candidates for the general elections. The government wants to eliminate them to reduce costs and political friction.
To unblock the negotiation, the Argentine executive branch (Casa Rosada) proposed implementing 'listas colectoras' (joint candidate lists where different parties endorse the same candidate), an initiative flatly rejected by Patricia Bullrich, leader of the center-right PRO party, who stated that this system 'deforms the system'. In this scenario, Cabinet Chief Diego Santilli is negotiating with governors from various districts to gather support. So far, only governors Jalil, Zdero, and Valdés have expressed their support for the political reform.
President Javier Milei adopted a conciliatory stance during the Tedeum (a traditional religious ceremony for national holidays) on July 9 (Argentina's Independence Day) in Tucumán, greeting Jorge Macri and various governors. Internal polls would place Milei at 32 points in voting intention, while his potential rival, Axel Kicillof (Governor of Buenos Aires province), would be at 27 points. The government attributes a recent drop in the president's image to alleged operations by Peronism (the main opposition political movement) linked to the Adorni case.
Alfredo S. Quiroga
