The comment heard around the Casa Rosada was that “it was a good week.” After Congress upheld his veto on university funding, President Javier Milei is said to have remarked to his inner circle that the government “dodged the two most powerful missiles that could have been fired” at them — referencing the demands for higher spending on pensions and education.
“What else are they going to throw at us,” he wondered.
Government allies, however, point out that the vetoes “could have been avoided.” In what appeared to be a criticism of the less-than-ideal relationship with Congress, they added that the administration would not have had to pay the “political cost” of the vetoes if negotiations with the legislative branch had been handled better.
Perhaps with the idea of not repeating these kinds of mistakes, the government has started to hold weekly meetings led by Chief of Staff Guillermo Francos and presidential advisor Santiago Caputo.
In any case, the president’s inner circle was pleased with the results. Milei summarized his mood in a WhatsApp message he sent on Wednesday to somebody asking asked him how he was doing. His answer was “country risk at 1122 (new low), MEP dollar at 1150.” In other words, the head of state is convinced that the economy is getting back on track — in line with what financial indicators show. Hence his statement that, “from now on, it will all be good news.”
The 3.5% inflation rate in September was also good news and President Milei expressed his satisfaction on social media.
“Inflation is coming down without hyperinflation, asset seizure, or a fixed exchange rate or price controls, and with the reestablishment of relative prices,” he wrote in a post on X.
“You have never seen a fight against inflation like this one. It takes a little longer but its genuine. Long live freedom, damn it!!”
The president usually tells his team that “giving in” to certain demands — such as those that put the fiscal balance at risk — would have “disastrous consequences.” Due to this, he states that he has no other alternative but to “put up a fight.”
In the immediate term, government strategists observe that resistance to official measures is waning. They argue that 230,000 people attended the first university march, while only 63,000 were at the last one.
With a positive vision, the president insists that the recovery of the economy is a general phenomenon. In his telling, “80% of the sectors are in green,” driven by the recomposition of salaries, pensions and credit, among other factors.
Milei disagrees with those who state that consumption is still weak. He considers measurements to be flawed since they do not reflect direct sales. On Tuesday, Mercado Libre CEO and founder Marcos Galperín said that “August was a record month for units sold in Argentina” in the 25-year history of the platform in the country, information that he surely must have given Milei. In a message posted on social media, Galperín specified that the numbers were “20 million products and US$916 million,” adding that “the growth rate accelerated even more in September.”
For the president, the relevant issue is “how little the economy fell” despite the fact that his government made “the biggest adjustment in history”. Milei continues to praise Eonomy Minister Luis Caputo and his team and it was not a coincidence that he paid them a visit this week to greet them.
In conversations with his inner circle, Caputo praises Milei as a president who lets him “do things.” This is an acknowledgment of the “excellent” relationship he has with the president as well as a veiled criticism to the margin of action he had in his previous post during the Mauricio Macri presidency.
Negotiations
A comment circulating in Casa Rosada is that the upholding of the presidential veto on university financing was a result of the reserved meeting between former President Macri and star advisor Santiago Caputo.
Milei’s inner circle said that the president opted for a pragmatic solution following the PRO leader’s criticisms of Caputo. He suggested the two meet and iron out their differences. Others believe that this development reflects a certain “cooling” in the relationship between Macri and Milei.
Incidentally, official sources say that former President Alberto Fernández is insistently trying to get in contact with Milei. The reasons are unknown because the current president has not answered any of the calls.
The recent approval of the single paper ballot is another issue that pleases the president. According to him, he undertook this initiative as one of his main banners to “fight the political caste.”
Those closest to the president say that Milei is convinced that his policies will put “an end to populism.” A few days ago, a collaborator told him that there was a chance Cristina Kirchner would run for president in 2027.
“I hope so; that way I will destroy her,” was Milei’s answer.