Buenos Aires Herald editorial

President Javier Milei used his first congressional opening speech on Friday to rehash his “anti-caste” talking points, essentially blaming the state, unions, and social organizations for everything wrong in Argentina. Politicians were among his main targets and the president listed multiple measures aimed at them, from the slashing of government-issued cars to forbidding the accumulation of air miles for personal use from their work-related travel.

Perhaps the only concrete forward-looking plan Milei announced was an invitation to provincial governors to join the “May 25th pact” centered around 10 principles the president considers crucial to carry out his economic reforms. Whether this peace offering is genuine or just another smoke screen remains to be seen.     

Milei’s olive branch came on the heels of a grueling week for the government. On February 23, simmering tensions with the governors finally boiled over. Chubut Governor Ignacio Torres, of the PRO party, threatened to stop sending oil and gas to the rest of Argentina unless the national government released AR$13.5 billion in federal tax revenues. All but one of Argentina’s governors backed Torres, escalating Milei’s wrath against them and worsening an already contentious relationship.  

The conflict between the Milei administration and the governors didn’t just strain the relationship between La Libertad Avanza (LLA) and PRO — it also strained relations within the PRO. Two days after Torres’ statement, Security Minister and PRO president Patricia Bullrich released a statement backing Milei. However, party heavyweights including former president Mauricio Macri, leader of the PRO’s deputies bloc Cristian Ritondo, and former Buenos Aires Province Governor María Eugenia Vidal were conspicuously absent from the signatories. 

The escalating confrontation has emphasized the oft-forgotten fact that Argentina’s political faultlines aren’t just partisan but fiercely territorial. Milei’s challenges in securing support come as no surprise: the libertarian chose to abandon his gubernatorial candidates in last year’s elections, and currently has no governors at all. 

It should also be noted that Milei’s signature “omnibus bill” failed to garner support from provincial lawmakers in Congress. The main sticking point was how federal taxes were going to be shared — the same issue that sparked the feud between Governor Torres and Milei last week.  

All this raises the question of how Milei expects to govern. If the president hopes to pass legislation with his current minority government, he will have to compromise to secure a majority. He is learning in real-time that support from governors is also key to leading the country. But he has responded at every turn with abrasive brinkmanship, attempting to coerce the provinces with funding, alienating those he needs to get onside.

Milei has unwavering faith in the hand of the market. Presumably, he is banking on the conviction that once the effects of his measures are felt and his much-vaunted miracle regrowth arrives, a hostile Congress will drift his way. He has already expressed confidence that the 2025 legislative elections will secure him the congressional seats he needs to get down to business. 

The wait-until-the-midterms tactic would suggest the president has decided to sit the legislative game out until he has a more favorable hand that can push lasting reforms through Congress. And while the presence of more LLA lawmakers in the Lower House and the Senate would free Milei of the pesky business of having to play quid pro quo with the opposition, it also shortens the time to fix what he has called the worst crisis of Argentina’s history.