13/07/2026 03:38 - Politica
While the country passionately follows the Argentine National Team's qualification to the 2026 World Cup semifinals, the government of Javier Milei is already looking toward the 2027 electoral horizon. According to the Argentine media Infobae, once the football euphoria subsides, the ruling party will begin defining fundamental steps for the president's re-election.
Cabinet Chief Guillermo Francos stated that Milei's re-election is 'necessary and possible.' To achieve this, the ruling coalition La Libertad Avanza (LLA) is pushing for the elimination of the PASO (Primary, Open, Simultaneous, and Mandatory elections), a uniquely Argentine system that forces political parties to hold internal primaries on the same day, funded by the state. This measure would profoundly change the local electoral system. However, the ruling party still lacks the 37 senators required to approve the reform, as it currently holds only 21 seats in the Upper Chamber.
To overcome this legislative hurdle, Deputy Diego Santilli is in talks with governors from the UCR (Radical Civic Union) and the PRO (Republican Proposal), seeking agreements to advance the initiative. Parallelly, the government is evaluating the implementation of a 'fiscal shutdown' mechanism, inspired by the U.S. model but adapted to local reality.
What is a 'fiscal shutdown'? In the United States, a government shutdown occurs if Congress fails to pass the budget on time, suspending payments and services. In Argentina, as explained by Guido Rangugni, president of ASAP (Association of Public Administrators), to Ambito, the previous year's budget is automatically extended, adjusted by the CPI (Consumer Price Index). The government has legal tools to adjust public spending without resorting to a total closure.
In this context, Patricia Bullrich defended a potential visit by the National Team to Casa Rosada (the seat of the executive branch), arguing the need to separate politics from sports amid the national fervor.
The electoral strategy is supported by economic indicators showing substantial improvement. The country risk (a financial indicator measuring the premium investors demand to hold Argentine debt compared to U.S. Treasuries) fell to 402 points, its lowest level since April 2018, with a drop of 29.4% so far in 2026. Economy Minister Luis Caputo detailed a plan to cover a debt of US$24.9 billion until the end of 2027, having already refinanced US$6 billion with 10 banks through REPO operations.
The Central Bank (BCRA) launched a shield of measures to contain pressure on the dollar ahead of the elections. Actions include futures intervention and the sale of dollar-linked bonds, with estimated firepower of US$20 billion. The goal is to keep the official dollar stable around 1,515 Argentine pesos (ARS).
Beyond short-term numbers, the government is betting on a structural transformation with the so-called 'atom and energy diplomacy.' This strategy is based on the export of nuclear reactors and seeks to diversify the Argentine productive matrix, enter a high-tech league, and crucially, achieve the coveted 'investment grade', leaving behind 'junk bonds' status. The plan is supported by ties with the White House and the IMF's positive impression of the economic plan.
The outlook is challenging yet optimistic. With the economy showing signs of recovery and football hope at its peak, Milei's government seeks to capitalize on the momentum to consolidate its project ahead of 2027.
Alfredo S. Quiroga
