The episode represents what could be described as a Latin American turn in a distant war. For decades, most countries in the region tried to maintain diplomatic balance in Middle Eastern conflicts, avoiding explicit alignment while preserving relations with multiple actors. Milei’s rhetoric breaks with that tradition. By openly identifying himself with Zionism and the strategic position of Israel and the United States, the Argentine leader has moved his country closer to the political logic of global blocs.

The shift is not only diplomatic but also ideological. Milei often frames international politics as a struggle between what he calls the “free world” and authoritarian regimes. In that worldview, support for Israel becomes part of a broader narrative that links Argentina to Western political and economic models. Foreign policy , therefore, is presented not simply as pragmatic diplomacy but as an extension of a larger ideological project.

This posture also reflects Milei’s effort to redefine Argentina’s international identity. Historically, Latin American diplomacy leaned toward multilateralism, neutrality, or regional consensus when confronting distant conflicts. By contrast, Milei’s discourse suggests a more assertive positioning within global disputes. In doing so, Argentina becomes one of the few countries in the region to openly take sides in a conflict unfolding thousands of kilometres away.

The implications go beyond Buenos Aires. If Argentina adopts a consistently aligned stance with Israel and the United States on Middle Eastern affairs, it could alter long-standing diplomatic patterns across Latin America . Some governments in the region have traditionally supported Palestinian causes, while others prefer cautious neutrality. Milei’s position introduces a new variable into that delicate balance.

Ultimately, the significance of the statement lies less in the phrase itself than in what it reveals about the changing geopolitical posture of the region. A Latin American turn in a distant war may still be largely rhetorical, but it reflects a broader question about the region’s place in an increasingly polarised world: whether Latin America will continue observing global conflicts from the sidelines, or whether some of its leaders will choose to take clearer positions in the battles shaping the international order.

Supporters of Mexico’s reform argue that shorter working hours can strengthen productivity, formal employment and social wellbeing, particularly in sectors where long shifts are common. The measure builds on previous increases to the minimum wage and expanded labour rights in recent years, signalling continuity in a policy direction that prioritises stronger state involvement in regulating working conditions .

Argentina, under President Javier Milei, is taking a contrasting route. The government has advanced a labour reform focused on deregulation, including easing hiring procedures, adjusting severance frameworks and modifying rules that affect union activity. Officials describe the changes as necessary to encourage private investment, reduce informality and address long-standing economic instability.

The Argentine approach reflects a broader pro-market agenda aimed at reducing what the government views as rigidities in the labour system. Trade unions and opposition groups have raised concerns about the potential impact on worker protections, while the administration argues that greater flexibility could generate employment opportunities in a struggling economy .

Together, the two reform processes highlight a clear regional divergence. Mexico is expanding statutory protections and reducing legal working hours, reinforcing a model centred on labour safeguards. Argentina is pursuing structural liberalisation intended to stimulate growth through market mechanisms. Rather than a question of right or wrong, the contrast underscores two distinct interpretations of how labour policy should respond to economic challenges in Latin America .

Argentine President Javier Milei released a Christmas message on Wednesday, December 24, reviewing his administration’s first year in office, highlighting the elimination of the fiscal deficit, a drop in inflation, the lifting of currency controls and recent electoral gains by La Libertad Avanza (LLA). In a video shared on Instagram, Milei said the consolidated deficit had been reduced from 15% of GDP to zero and claimed that inflation had been brought under control, lifting 12 million people out of poverty. He also praised Security Minister Patricia Bullrich for ending roadblocks, tightening crime policy and creating a Federal Directorate of Investigations. Milei celebrated the adoption of the Single Paper Ballot and LLA’s performance in the legislative elections, which made the party the largest minority in the Chamber of Deputies and secured 20 Senate seats. He closed the message by urging Argentines to “fasten your seatbelts,” signalling further reforms as Congress prepares to debate the 2026 Budget.

Government pushes for Senate approval of 2026 Budget

President Javier Milei’s La Libertad Avanza gained backing from four senators in the Convicción Federal caucus, boosting government confidence that the 2026 Budget bill will pass its first reading in the Senate. If approved, it would be the first budget sanctioned under Milei since he took office in December 2023. The main uncertainty centres on Article 30, which proposes repealing laws that earmark funding for education, science and technical schools. While the government expects broad support for the overall bill, several Peronist senators backing the budget have said they will not vote for that article. The Casa Rosada is seeking to secure more than 40 votes and avoid reopening debate after setbacks in the Chamber of Deputies, where lawmakers failed to repeal university funding and disability emergency laws.

Economy minister signals shift away from Wall Street debt

Economy Minister Luis Caputo said the government will try to avoid issuing new debt under New York law in January, as part of a strategy to reduce Argentina’s reliance on U.S. financial markets. Writing on X, Caputo said the aim is to make Wall Street only a marginal source of financing. His comments followed a recent US$1 billion bond auction that drew higher yields and weaker demand than expected. Caputo said Argentina’s market debt is equivalent to about 25% of GDP, with Wall Street exposure accounting for less than five points. He added that proposed labour reforms include a severance assistance fund that could help develop a domestic capital market of around US$4 billion per year.

San Juan launches Argentina’s first solar highway

The province of San Juan inaugurated Argentina’s first solar highway on the Avenida Circunvalación, integrating photovoltaic generation into road infrastructure. The project includes 36 solar systems mounted on metal monopoles that feed electricity into the grid during the day and power road lighting at night. Developed entirely with local labour and expertise, the initiative aims to optimise existing infrastructure without using additional land. Provincial authorities say the project reduces emissions, cuts long-term energy costs and positions San Juan as a national leader in renewable energy and sustainable urban development.

Report shows sharp rise in security incidents

A national report by private security firm Verisure recorded a 20% year-on-year increase in security incidents across Argentina, highlighting a fragmented and regionalised crime pattern. Tucumán topped the ranking with a 65% rise, followed by Córdoba at 50% and Mendoza at 40%. The Atlantic coast saw a 30% increase, while Buenos Aires Province registered a 15% rise overall, masking a sharp increase in violent robberies in the Greater Buenos Aires area over the past decade. Despite the rise in robberies and violent incidents, Argentina’s homicide rate stood at 3.8 per 100,000 inhabitants, the lowest in two decades. According to the report, 74% of Argentines now cite insecurity as their main concern, pointing to public safety as a key social and political challenge.

Speaking to regional leaders, Milei argued that what he described as an authoritarian regime in Caracas could no longer be treated with caution or neutrality. He urged Mercosur members to take a firmer stance, calling for collective condemnation and alignment against what he framed as a regional danger that, if left unchecked, could affect the entire continent.

The Argentine president also welcomed pressure exerted by the United States under President Donald Trump , whom he credited with efforts aimed at increasing international pressure on Venezuela. Milei encouraged fellow Mercosur countries to support Washington’s position, saying the time had passed for what he described as timid or ambiguous responses to the situation.

His remarks came as the Trump administration announced new sanctions targeting family members of the Venezuelan president, escalating economic and diplomatic pressure on Caracas. The United States has also expanded its military presence in the Caribbean, citing operations against drug trafficking networks, while warning of further action. The Venezuelan government has rejected the accusations, denying links to narcotics trafficking and accusing Washington of pursuing regime change.

Speaking at the ceremony, Milei argued that the F-16s represent more than a military upgrade, presenting them instead as a symbol of national strength in what he called an increasingly unstable global environment. He said a country aiming for sustainable development must be able to command respect internationally, linking military readiness with his broader narrative of economic revival and national restoration. Flyovers across Buenos Aires — including the Casa Rosada and the Obelisk — were staged to showcase the new fleet, which he referred to as “guardian angels” and “custodians of Argentine airspace.”

Milei’s emphasis on defence spending has drawn criticism from opposition groups, who denounced the jet purchase as unnecessary amid deep cuts to public services. The president, however, framed the acquisition as part of Argentina’s overdue modernisation and argued that strong deterrence is essential to securing long-term prosperity. His government has increasingly aligned its defence agenda with Washington and its NATO partners, positioning the deal as part of a broader shift in Argentina’s foreign policy .

The aircraft began its journey in Denmark earlier this week, stopping in Zaragoza and the Canary Islands before crossing the Atlantic. The transfer was supported by US Air Force aerial refuelling and involved mixed Danish-Argentine crews. The Río Cuarto base will become the fleet’s first operational hub, with Argentine pilots expected to transition to the F-16 system early next year.

In a speech broadcast on the La Libertad Avanza YouTube channel and before crowds gathered outside the Casa Rosada, Milei framed the result as a historic turning point for the country. “If you could see how beautiful Argentina looks and how well purple suits it. Today has clearly been a historic day for Argentina. The Argentine people decided to leave behind 100 years of decline and to persist on the path of freedom, progress and growth. Today begins the construction of a great Argentina,” he said.

According to the National Electoral Chamber, voter turnout stood at 66 percent. The election also marked the first use of the National Paper Ballot system, which authorities said operated smoothly nationwide. Financial markets reacted positively to the result, with the peso strengthening and stocks climbing as investors signalled renewed confidence in Milei’s liberal economic agenda.

On the international front, Milei has pledged to deepen relations with the United States and Israel while reassessing Argentina’s partnerships with China and other traditional allies. Despite the landslide, however, the president will still need to negotiate with opposition blocs to advance key reforms on labour, pensions, and fiscal policy amid persistent inflation and economic stagnation.

The outcome could shift the legislative landscape substantially. Milei’s coalition is seeking to secure at least a third of the Congress, giving it the power to block or shape legislation and protect its vetoes. At the same time, opposition groups are aiming to roll back what they describe as the government ’s “destabilising” economic and political agenda.

Beyond mere numbers, these elections are being viewed as a referendum on direction and stability. The result may affect Argentina’s ability to pass major reforms, influence the country’s economic recovery path, and set the tone for the next presidential contest. With a highly polarised electorate and rising economic pressures, the stakes are high not just for Argentina, but for regional observers assessing the strength of liberal versus populist trends across Latin America .

Myriam Bregman, a prominent Left Front candidate for Buenos Aires, said the location was chosen as a deliberate “anti-imperialist gesture”. “We do not want to be another star on the Yankee flag,” she told supporters. “That is what Javier Milei is proposing, that Argentina becomes a colony of the United States , where the most important decisions are made abroad.”

Bregman accused Milei of prioritising US approval and International Monetary Fund support over national sovereignty, arguing that his economic policies deepen Argentina’s dependency on foreign capital. She also claimed that Washington’s influence aims to “sink the country for its own gain,” particularly amid Argentina’s ongoing struggle with inflation and debt.

The rally marked the close of campaigning ahead of Argentina’s legislative elections on October 26, in which half the seats in the Chamber of Deputies and a third of the Senate will be up for renewal. More than 36 million Argentines are eligible to vote, both at home and overseas, in an election that could reshape the balance of power in a deeply polarised political landscape.

Cuts to the caste or for the people?

After decades of Peronist rule, Milei was promising an abrupt change away from statist ideology to a small-state model where, in his view, private enterprise and the invisible hand of the market would solve society’s problems.

Milei promised these cuts would fall squarely upon the state—in his telling, a bloated and corrupt institution of elites he dubs la casta , or “the caste”—while everyday working people would be spared. However, the reality has been quite different. The first half of 2024 was marked by a brutal inflationary spiral and recession, as Argentina’s economy absorbed the changes. Inflation peaked at 289 % in April 2024. Poverty was estimated at between 55 and 57 %—the latter a 20-year high —and the increases to child welfare weren’t enough to stop poverty from reaching seven in 10 Argentine children . Pensions have also been allowed to liquefy. Older adults protest every Wednesday outside Congress and are routinely met with police brutality. The situation has improved since that initial turbulent period. Inflation trended steadily downwards to 37 % in July, the most recent data available. Poverty was down to 38 % by the second half of 2024. And Argentina has run a fiscal surplus for the first time in 16 years.                                                                                                                                                   

Decelerating inflation rates and fiscal stability, however, take a toll on the welfare regime, which seems to suffer under these short-term gains. Social safety policies, which usually compensate for unemployment or poverty, crumble under the austerity measures, leading to a widening gap in access to participation in society and consequently causing further social division. This is reflected in recent data of the Transformation Index BTI 2026, where the scores for Socio economic barriers and Social safety nets each dropped from 6 to 5 out of 10 possible points, while the Equal opportunity score fell from 7 to 6 points.  

The IMF and currency controls

For the first year and a half of Milei’s presidency, business leaders and investors had one question on their lips: When would the government lift currency controls? This web of restrictions on how Argentines could use the US dollar gave rise to a flotilla of exchange rates and caused a major headache for anyone doing business. In April 2025, they got their answer. In a lengthy announcement, Economy Minister Luis Caputo and Central Bank President Santiago Bausili explained that Argentina would unwind the controls, the peso would float freely between wide bands, and the government would not intervene in the exchange market unless it passed the upper or lower limit. In the immediate aftermath, the World Bank and the IMF both announced financial injections to support Argentina’s economic reform program.

In October 2025, half of the deputies and a third of senators will be renewed in the national mid-term elections. Milei has a tiny minority in Congress and depends on support from friendly opposition. A process which has recently involved vetoing anything he deems spendy, since it’s harder to achieve the two-thirds majorities needed to overturn a presidential veto than the absolute majorities needed to pass laws in the first place. He hopes to strengthen his hand in these elections, allowing him to govern with greater ease. Corruption scandals and early-warning signs. However, much of his electoral appeal depends on a stable economy—and therefore, a stable dollar. The government has been loath to buy dollars to nourish its reserves for fear of pushing the price up, but this means its foreign reserves are still running on fumes.

This has proved a devil’s bargain: exporters do not want to sell because of the disadvantageous exchange rate, while Argentines, empowered by the lack of currency controls and the super peso, a currency which has significantly appreciated against the dollar as the reference currency, are bleeding the country’s coffers by holidaying abroad. After a period of restive market sessions, the government announced that it would intervene directly in the foreign exchange market.

But the development that could yet prove lethal lies closer to home. In late August, leaked audio said that senior officials, including Milei’s sister, Karina, who serves in the specially-created role of secretary general of the presidency, had been charging bribes in exchange for contracts with the state disability agency. The news broke at a time when Milei was fighting Congress tooth and nail to block a bill increasing funding for people with disabilities, arguing that there was no money for it. For the first time since he took office, Congress overturned his veto.

The corruption scandal soon made itself felt at the polls. On September 7, voters in Buenos Aires Province—Argentina’s largest electoral district, with almost 40% of the voter roll—went to the ballot boxes in local elections where the opposition coasted a victory over Milei with 47 % and a 13-point lead.

What happens in the Buenos Aires outskirts, traditionally a Peronist stronghold, can’t be generalised to the rest of the country. But one thing remains clear for Milei’s reform agenda: a voyage that looked like plain sailing back in April could run into storm clouds on the horizon.

* DISCLAIMER: The final reports underscoring the numerical figures referring to the BTI 2026 mentioned above will be published in early 2026.

The opinions and thoughts expressed in this article reflect only the author's views.

Amy Booth is a journalist in Buenos Aires who covers politics, human rights and global development in Latin America

Following the interception, Celeste and other members of the flotilla were detained and transferred to Ktzi’ot Prison, a high-security facility in the Negev Desert. She was held there from October 3rd to 7th, without formal charges, under conditions she later described as inhumane. During her detention, the group was denied access to lawyers, personal belongings, and contact with their families.

On October 8th, Celeste Fierro arrived back in Buenos Aires after being deported from Israel. Upon her return, she publicly denounced the lack of diplomatic action from President Javier Milei’s government , stating that there was no effort to protect the Argentine delegation or accelerate their release.

Fierro’s accusations also point to a broader political alignment. Since taking office, President Milei has strengthened ties with the Israeli government, moving Argentina’s foreign policy sharply toward unconditional support for Prime Minister Benjamin Netanyahu. He has visited Israel, announced plans to relocate Argentina’s embassy to Jerusalem, and repeatedly framed Israel’s military actions as “a defence of Western civilisation.” This alignment has translated into diplomatic silence in the face of Israeli violations of international law and human rights.

The Global Sumud Flotilla—whose name means steadfastness in Arabic—brought together activists, parliamentarians, and human-rights defenders from around the world to break the maritime blockade of Gaza and call for accountability. 

While their mission was violently repressed, it reignited international attention on the humanitarian catastrophe unfolding in Gaza and exposed the complicity of governments that remain silent.

The opinions and thoughts expressed in this article reflect only the author's views.

Celeste Fierro is a politician and activist from Argentina. Between 2023 and 2024, she served in the legislature of the Autonomous City of Buenos Aires (CABA) as part of a rotation of positions by the Workers' Left Front. She participated in the Global Sumud Flotilla, which aimed to break the blockade of the Gaza Strip. On October 1, 2025, she was taken into custody when Israeli forces attacked the Flotilla. She was released a few days later.

At a meeting in the White House, Donald Trump explicitly conditioned further aid on Milei’s party winning the legislative vote. He warned that without an electoral victory, the United States “would not be as generous.” Markets reacted swiftly: Argentine bonds plunged, stocks tumbled, and the peso lost ground.

The proposed new injection, reportedly $20 billion in private-sector funds , would sit atop an existing $20 billion currency swap line already pledged by the U.S. Treasury. That would bring the total U.S.-backed aid package to around $40 billion — a major lifeline for a government scrambling to stabilise its finances. In parallel, U.S. authorities have intervened in currency markets, including selling Argentine pesos through Citigroup to the Federal Reserve in a bid to support the peso.

Critics and opposition voices in Argentina immediately denounced the arrangement as conditional and coercive. Some viewed it as a clear message: support is contingent not on policies but on electoral success. The proposal raises significant questions about sovereignty, the role of foreign influence in domestic politics, and the sustainability of aid tied to political alliances.

As the October 26 elections approach, Argentina finds itself in a high-stakes moment: the fate of its economy —and the credibility of its democracy—may hinge on whether rescue becomes a tool of political leverage or a genuine act of emergency economic stabilisation.

The announcement followed the U.S. Treasury’s approval of a $20 billion financial framework to strengthen Argentina’s liquidity and market confidence. But Milei’s domestic agenda, unveiled in parallel, may prove just as transformative. He pledged to eliminate around 20 taxes that “complicate more than they collect,” describing Argentina’s habit of creating “ridiculous and distortive” levies as an addiction he intends to cut “at its root.” The government also plans to liberalise labour contracts, allowing employees to negotiate payments in any currency. “If someone wants to receive their entire salary in dollars, they will be able to do so,” he said.

Beyond deregulation, Milei outlined a vision of global economic integration. Argentina, he promised, will “open its doors to goods and services from all over the world” — ensuring that store shelves display products “from Montevideo, Mexico City, New York , Barcelona, and even Bangladesh or Tokyo.” This, he said, would come with safeguards to protect local producers, but only after taxes, bureaucracy, and credit costs are sharply reduced.

The president also highlighted unprecedented foreign investment commitments. He announced a $30 billion energy partnership between Argentina’s state oil company YPF and Italy’s ENI — the largest in the nation’s history — to develop liquefied natural gas projects that could export up to $20 billion annually. In the tech sector, OpenAI plans to invest $25 billion to build large-scale data centres, a move that Milei said would make Argentina “the world’s third artificial intelligence hub.”

With these reforms and alliances, Milei says he aims to “unlock the powerful domino effect of economic growth” and leave behind “the dark era of the last 15 years,” when no genuine net jobs were created. His “Make Argentina Great Again” plan, he insists, is more than a slogan — it’s a roadmap for restoring Argentina’s place in the global economy ahead of next year’s crucial mid-term elections.

“We are here repudiating the anti-health and anti-education policies of these disastrous government s of Milei and Cornejo,” said protester Celia, one of many who took to the streets in Mendoza to voice frustration over the government’s economic agenda.

But amid the tension, others expressed strong support for the president’s reforms. “Tired of all the people who have received things from above without working, and tired of the country we have, of how our children have been indoctrinated,” said Meliza Quiroga, a Milei supporter. “I think Milei is doing very well; that’s why I come to support him. We need more people in Congress who back his decisions.”

Both Celia and Meliza spoke to Viory, highlighting the stark divide that continues to define Argentina’s political landscape. While opponents denounce Milei’s cuts as destructive, his supporters see them as long-overdue corrections to years of mismanagement.

The president’s visit also included private meetings with business leaders and Governor Cornejo, who avoided commenting on the unrest. The clashes in Mendoza came just a day after similar incidents in Lomas de Zamora, where Milei was forced to leave an event amid violent protests — underscoring the volatility ahead of Argentina’s midterm elections scheduled for October 2025.

The 573-page book compiles speeches, social media posts, and public remarks from Milei’s first two years in office, a period now widely seen as the most turbulent of his presidency.

The launch comes just days after a major political blow: the resignation of José Luis Espert, one of Milei’s top midterm candidates, over alleged ties to drug trafficking .

In a brief speech, Milei condemned a recent anti-Semitic attack in Buenos Aires, blaming it on what he called “the xenophobia that the left is trying to impose.” He followed the statement with a performance of the Jewish folk song “Hava Nagila,” which was met with a muted response from the audience.

With inflation still soaring and infighting within his coalition intensifying, critics say Milei’s showmanship may be distracting from the deep challenges his administration faces ahead of the October 26 midterm elections.

According to court records in Texas, Espert allegedly received $200,000 in February 2020 from a trust connected to Fred Machado, a fugitive accused of drug trafficking, and Debora Lynn Mercer-Erwin, who is currently serving a 16-year prison sentence in the United States for narcotics , money laundering, and fraud.

Milei, however, dismissed the reports as recycled accusations. “They did this in 2019, they did it in 2021. It’s a methodology — smear campaigns to create noise during elections,” he said. The president argued the timing of the revelations is politically motivated and urged observers to await the outcome of US judicial proceedings.

He also linked the allegations to what he described as broader “political franchises” used by opponents in Latin America , accusing Argentina’s opposition of resorting to “tricks” whenever they feel threatened. “My hope is that over time people recognise this modus operandi,” he added.

The controversy adds to growing scrutiny of Milei’s inner circle, as the president has also been forced to defend his sister, Karina Milei, against separate corruption allegations. With less than a month until the elections, the dispute underscores the volatile mix of judicial investigations and political battles shaping Argentina’s campaign season.

A so-called repo loan —where Argentina would provide collateral such as reserves, US Treasury bonds, or future export revenues in exchange for dollars—appears to be gaining traction. The mechanism has been used before in Latin America , notably in Mexico’s 1995 rescue package, but not at this scale in Argentina. The possibility of the US directly buying Argentine bonds is also under consideration, a move that boosted bond prices and lowered the country’s risk index earlier this week.

Bessent has insisted that the support would come “without conditions ”, but experts remain sceptical. Economists believe Washington could impose implicit requirements, such as restricting Argentina’s interventions in the currency market or abandoning its current exchange rate bands in favour of a full float. Others suggest the US could pressure Milei to cancel or avoid renewing Argentina’s existing currency swap with China.

If confirmed, this would be Argentina’s ninth debt operation with the US Treasury in the past four decades. While the measures could bring short-term relief, analysts warn that the credibility of Milei’s government will depend not only on external backing but also on political stability and the country’s ability to implement lasting reforms.

The vote came after thousands of students, professors, health workers, and unions rallied outside Congress in Buenos Aires. Demonstrators accused Milei of undermining education and public health under his strict “zero deficit” fiscal agenda, symbolised by the chainsaw he brandishes to signal budget cuts. Similar mobilisations have swept across Argentina’s 57 public universities, which serve nearly two million students.

Milei has defended his veto as necessary to restore fiscal order, promising in his proposed 2026 budget to raise spending on education and health above inflation. Yet critics say the plan falls far short. University leaders estimate the sector needs 7.3 trillion pesos (around $4.9 billion) to function properly, far more than the 4.8 trillion ($3.2 billion) allocated. With public discontent mounting and his party recently defeated in Buenos Aires provincial elections, Milei faces growing resistance in Congress and the streets alike.

He stressed that “the worst is over” for the country and highlighted that, despite progress, many citizens may not yet feel improvements in their daily lives. Milei presented a budget that allocates 4.8 billion pesos to national universities, increases pensions by 5%, health spending by 17%, and education by 8%, all above inflation. He framed these allocations as part of a broader strategy to prioritise human capital while maintaining fiscal balance.

Political analyst Bruno Lira offered context, suggesting that Milei’s emphasis on social spending may reflect internal pressures and public demonstrations.

Lira told Global South World, the government’s decision to increase health, education, and pensions funding likely responded to retiree marches, university strikes, and hospital labour actions.

This interpretation positions Milei’s announcements not merely as policy statements, but as reactive measures influenced by ongoing social and political dynamics.

The president also discussed the role of a primary surplus, noting that it will enable the state to finance private sector projects, reversing decades of private funding of public initiatives. Milei framed this shift as a way to accelerate public infrastructure and logistics projects that had stalled during previous administrations.

Lira highlighted the significance of this approach, pointing out that it signals both a strategic commitment to public investment and a potential test of Milei’s political adaptability amid persistent challenges.

The legislation, approved by Congress in August, sought to bolster financial support for public universities and declare a pediatric emergency to enhance resources for children's hospitals, including the renowned Garrahan Hospital in Buenos Aires. Milei, citing fiscal responsibility, argued that the laws would exacerbate the country's economic challenges.

In response, thousands have taken to the streets in cities nationwide, with significant demonstrations held outside the National Congress in Buenos Aires. Protesters are demanding the reversal of the vetoes and increased investment in education and healthcare. The opposition-controlled Congress is considering actions to override the vetoes, intensifying the political standoff.

These developments come amid Milei’s broader austerity measures aimed at stabilising Argentina’s economy , which has been grappling with inflation exceeding 200%. While these policies have garnered praise from financial markets, they have also led to a decline in the president’s popularity and increased tensions with various sectors of society.

The reaction from financial markets was swift: stocks fell 12% , the peso slid 5% , and government bonds dropped 4% following news of the defeat.

Kicillof’s gamble to hold a separate provincial vote—despite internal Peronist pushback—proved strategically successful, solidifying his influence within the movement and elevating him as a potential presidential contender for 2027 .

In his victory speech, Kicillof thanked supporters, criticised Milei’s administration, and pledged that Buenos Aires Province would act as “a shield and a safety net to defend the people ”, calling on the president to “change course” in the wake of the results.

The rule change applies to approved gun users who meet specific conditions, including proving the weapons are for sporting use.

The decree, published in the Official Gazette, permits civilians to acquire firearms that were previously reserved only for military use.

These include assault rifles, carbines and submachine guns. The weapons must have detachable magazines and be of calibres above .22.

The government has already introduced a fast-track online system for issuing gun permits, known as “tenencia express,” which applies to both civilians and members of the military or security forces.

The system is managed by the National Agency for Controlled Materials (ANMAC), which oversees gun control in the country.

This is the latest in a series of moves by Milei’s administration to loosen gun laws in Argentina.

In 2024, the government also lowered the minimum age for legal gun ownership from 21 to 18.

Milei has previously said he supports the right to own weapons but had not promised full deregulation during his presidential campaign.

Albrecht is a journalist and audiovisual producer with a background in Protestant communication. On TikTok, he shares concise political commentary grounded in historical and ethical reflection.

The move will offer a faster path to citizenship compared to Argentina’s current rules, which require two years of permanent residency before applying.

Instead, the investment programme will give eligible applicants direct access to Argentine citizenship, according to Nomad Capitalist , a firm that advises international investors.

“The focus is on job-generating contributions, not real estate or donations,” Isabela Schrotke, a researcher at the firm said.

According to her, government is working on two legal decrees to ensure the programme is built on a solid foundation and can withstand legal challenges.

Supporters of the new programme say it comes at a time of major change in Argentina.

President Javier Milei, who took office in December 2023, has introduced tough reforms aimed at stabilising the country’s economy.

Inflation has started to slow, and Argentina has reported a budget surplus for the first time in years.

The citizenship opportunity will allow foreigners who have an Argentine passport to travel visa-free to 172 destinations and give them the right to live and work in other Mercosur nations, including Brazil, Uruguay and Paraguay.

However, the proposal has drawn some criticism.

Experts warn that Argentina’s political history and long distance from global business hubs may make it less attractive to some investors.

Some legal issues have also been raised, including the fact that citizens will be considered under local law , which could have tax or legal consequences depending on the person’s other nationality.

Over time, some citizens of Argentina have held up savings in dollars rather than pesos due to the country’s long history of inflation and currency instability.

Under the new plan, the government will remove tax reporting rules for those who choose to bring their unreported dollars back into the local economy, Morning Times reports.

Officials say there will be no questions asked about the origin of the money.

The government hopes that by making it easier for people to use these dollars openly, it will help boost Argentina’s low foreign currency reserves and stimulate spending within the country.

The plan is part of a wider push by President Milei’s administration to stabilise the economy using free-market policies . 

Under this new plan , people entering the country illegally could also be expelled immediately.

The plan also includes tougher requirements for gaining residency and citizenship. Foreigners would need to live continuously in Argentina for at least two years without leaving to qualify.

Those who use public healthcare or education services may also be required to pay for them.

Adorni said the changes aim to protect law-abiding immigrants and local residents. “

All those convicted of committing a crime will be deported,” he was quoted by local reports as saying.

The new policy could also allow public universities to charge fees to foreign students. In addition, any foreigner with a criminal record could be denied entry at border crossings.

Adorni argued that nearly 1.7 million undocumented migrants have entered Argentina in the past two decades, placing a heavy burden on the public healthcare system.

He also criticised "health tourists", including people from neighbouring countries who travel to Argentina to receive free treatment and then return home.

He said the new rules are not meant to punish those who follow the law but to ensure fairness.

The government , led by President Javier Milei, says the goal is to welcome immigrants who want to help build a better country, but only within the boundaries of the law.

Workers clearing archives for a future Supreme Court Museum in Argentina recently discovered boxes in the basement of the Supreme Court containing Nazi-era materials. The boxes, stored for over 80 years, include swastika-stamped notebooks, propaganda, and documents believed to support the spread of Adolf Hitler’s ideology in Argentina during World War II. According to an official court statement, the contents may provide new information about Nazi activities in the country during the early 1940s.

Fitch upgrades Argentina's credit rating amid economic recovery and IMF support

Fitch Ratings has upgraded Argentina’s long-term foreign currency debt rating from CCC to CCC+, citing rapid economic recovery under President Javier Milei. The decision reflects a new $20 billion agreement with the IMF, including an initial $12 billion disbursement that raised reserves to $38 billion and the implementation of a liberalised exchange rate band between AR$1,000 and AR$1,400 per US dollar. The agency highlighted stronger-than-expected disinflation and credit reactivation. However, it also noted ongoing challenges, such as uncertainty in sustained reserve accumulation and limited access to external financing.

Argentina’s peso trades near official rate as markets respond to fiscal policy

On May 13, Argentina’s blue dollar exchange rate stood at 1,170 ARS/USD, just 1.3% above the official rate of 1,155, reflecting increased investor confidence. The previous day, the official rate closed at 1,150 while the blue dollar declined 0.43% to 1,170. The S&P Merval rose 5.49%, and Argentine equities listed on the NYSE gained 4.79%. Government bonds also advanced slightly. However, market optimism was tempered by corporate debt concerns, notably a $20 million bond default by a utility company. The peso’s relative stability is supported by President Javier Milei’s fiscal measures, including spending controls and export tax reductions. Nevertheless, high—albeit decelerating—inflation and approximately $275 billion in offshore wealth continue to pose risks of capital flight.

Telefonica posts €1.3 billion Q1 loss due to asset write-downs in Peru and Argentina

Spanish telecom company Telefonica (TEF.MC) reported a first-quarter net loss of €1.3 billion ($1.45 billion) on Wednesday, May 14, in line with analyst estimates, following asset write-downs in Peru and Argentina. Analysts had projected a loss of €1.32 billion, according to a company-provided consensus. Revenue declined 2.9% year-on-year to €9.22 billion, slightly exceeding expectations of €9.1 billion. Shares fell 0.4% in early trading.

Argentina’s central bank expects inflation slowdown to continue into May

Argentina’s central bank vice president, Vladimir Werning, stated on Tuesday, May 13, that the deceleration in inflation observed in April is expected to persist through May. The national statistics agency will release official April inflation figures on Wednesday, which will confirm whether this trend aligns with the central bank’s outlook.

The new rule which took effect on February 27 could shake up Argentina’s meat industry.

The country is one of the world’s biggest beef exporters, with a cattle population of around 53 million—more than its human population.

Major local meat companies, such as Grupo Coto and Grupo Beltran, compete with large Brazilian firms like Marfrig Global Foods and Minerva.

Milei, who describes himself as a libertarian, has been pushing for free-market policies to pull Argentina out of its economic struggles.

Supporters believe lifting restrictions on cattle exports will create new business opportunities, while some have expressed concerns that it could disrupt the local meat industry.

Argentina is the world’s fifth-largest beef exporter, according to the US Department of Agriculture.

After his post, the value of the coin skyrocketed to nearly $5,000 per token, with a total worth of $4.6 billion. But just hours later, it collapsed to under $1, leaving investors with massive losses.

Crypto experts say the situation looks like a “rug pull,” a scam where creators lure investors and then disappear with the money.

Reports suggest that those behind $LIBRA may have withdrawn over $100 million before the crash.

Even before the meltdown, analysts had warned about the project, pointing out that a small number of accounts controlled most of the coin’s supply, making it easy to manipulate prices.

After backlash, Milei deleted his post and said he had no ties to the project.

His lawyer insisted he had done nothing wrong. The government later announced that Milei had asked Argentina’s Anti-Corruption Office to investigate if any officials, including himself, were involved in wrongdoing.

Meanwhile, some lawmakers want to remove him from office, calling the scandal an embarrassment. Opposition leader Cristina Kirchner accused Milei of being part of a crypto scam. Others pointed out that this isn’t the first time Milei has promoted questionable digital currencies.

The controversy comes as Milei’s government is trying to fix Argentina’s struggling economy.

Speaking at the presidential palace, Casa Rosada, Milei said, “Nuclear energy will have its triumphant return.”

Milei highlighted Argentina’s natural and human advantages. “We have a privileged people in human capital and abundant energy reserves,” he was quoted as having said .

He also described Patagonia’s low temperatures as ideal for housing artificial intelligence servers, which require significant energy.

The plan will begin with the construction of a small modular reactor at the Atucha Nuclear Power Plant. According to Chief Advisor Demian Reidel, this will reduce power outages and improve energy access nationwide.

The project also includes plans to develop uranium reserves to meet domestic demand and create export opportunities. The government hopes the plan will make Argentina a global leader in the peaceful use of nuclear power and artificial intelligence.

President Javier Milei, who promised drastic spending cuts to tackle Argentina’s severe economic problems, has made some rather massive changes to the science community in the country.

Cut on funding

He has slashed funding for science, a move which has affected the Innovation, Science and Technology Secretariat, which was previously a full ministry.

The secretariat under Milei now has one-third of the budget it had last year.

Scientists and researchers are panicking and have expressed pessimism about the future of science in the country if things continue like this.

Jorge Geffner, director of the Institute for Biomedical Research in Retroviruses and AIDS (INBIRS) in Buenos Aires said , “With six more months like this, there will be nothing left”.

About half of the staff at the institute are preparing to leave Argentina or are already taking steps to work abroad.

Many others say their salaries have dropped by up to 30%.

Luis Moyano, a physicist specialising in artificial intelligence, is leaving for Spain because his income in Argentina can no longer cover basic needs.

“As a scientist, I can say we were never in an ideal situation, but this is much worse,” he was quoted .

The National Agency for the Promotion of Research, Argentina’s main research funder, has also slowed down. Despite much of its budget coming from international donors, government restrictions have stopped projects from moving forward. In September, the agency’s president, Alicia Caballero, resigned after being blocked from using the funds.

President Milei’s has also called on scientists to compete in the private market instead of relying on government support, referring to those who depend on public funds as “scoundrels.”

Climate change

The president’s stance on climate change has further alarmed scientists. Milei denies human activity is causing global warming, calling it part of a natural cycle. His government pulled out of the COP29 climate talks and downplayed climate change in official plans to protect biodiversity.

The future?

As the country’s scientific infrastructure faces challenges, many are afraid Argentina will lose its ability to produce critical research and innovation.

“The government’s attitude towards science and nature has consequences,” Alejandro Valenzuela, a biologist at the National University of Tierra del Fuego was quoted as saying.

Presidential spokesperson, Manuel Adorni who made the announcement said President Javier Milei is committed to tackling inequality in the system and enhancing a more equitable job market in the public sector.

He noted that with the ban, nobody will be entitled to ‘blood privileges’ as is common in public institutions at the provincial level particularly.

Before this, provisions were made for family members to inherit the jobs of their deceased relatives in some government agencies in the country.

Adorni further called for changes in how provinces manage their workforce to enhance private sector growth in other regions.

Adorni noted that in some areas, up to 80% of jobs are in the public sector, which he said creates an imbalance that limits private-sector expansion and results in inefficient public spending.

“The goal is to reduce unnecessary expenses,” Adorni was quoted as having said at a press conference.

He indicated that many of these buildings were former government institutions which were downgraded by President Javier Milei after he took office.

This includes the former headquarters of the former Women, Gender & Diversity Ministry, located in Buenos Aires’ San Telmo valued at an estimated $12.5 million.

Upon taking office, the president replaced the ministry, established in 2019 by former President Alberto Fernández, with a sub-secretariat under the Justice Ministry.

Other unused buildings, buildings which are in poor condition, or have high maintenance costs will also be sold by Milei’s government.

Manuel Adorni, the presidential spokesperson, shared the news during a press conference, stating, "This will mean a budgetary savings of around 6.4 billion pesos a year (about $6.5 million)."

President Javier Milei, who assumed office in December 2023, has introduced a series of austerity measures to combat the country's economic challenges, including significant layoffs of state workers and drastic spending cuts.

These measures have sparked widespread unrest, with hundreds of thousands of Argentine students protesting against Milei’s budget cuts earlier this month. The administration's threats to veto a recently passed law in Congress that aimed to guarantee university funding have only intensified the backlash.

The impact of President Milei's austere policies is evident, as the poverty rate in Argentina has surged to nearly 53% in the first half of 2024. An increase from 41.7% at the end of 2023 when he took office and more than double the 26% reported seven years ago.

The veto was upheld with 153 votes in favour, 87 against, and eight abstentions despite a heated debate that lasted over four hours.

Thousands of protesters gathered outside the National Congress as news of the veto's approval spread. The demonstration quickly escalated, with some protesters breaking down barriers and clashing with riot police. Authorities responded with pepper spray and rubber bullets to disperse the crowd.

"No, I no longer live. I no longer live. Just because a heart beats doesn't mean there's life—be careful, I don't live. I'm a living dead, I don't know how to explain it. I don't live. I don't live because I earn 8,000 pesos (8.35 USD) a day, it's very simple, 240,000 pesos (250.60 USD) a month," said 75-year-old Luis Relinquet.

Argentina is struggling with severe economic challenges , including an annual inflation rate nearing 240%. President Milei's administration has implemented a series of austerity measures aimed at curbing government spending and stabilising the economy since it took over in December.

However, these measures have been met with significant opposition, particularly from those who feel the cuts disproportionately affect the most vulnerable populations.

"I don't want to use any bad words because my religion forbids it, but it slips out. He's a son of a bitch because he forgets about the elderly, he forgets about the elderly, the sick, and those of us who are in need." 76-year-old Edgardo Cabalillas added.

Lionel Messi and Argentina started their Copa América title defence with a 2-0 win against Canada . Messi played a key role, providing an assist for one goal and creating several chances. The atmosphere in the stadium felt like a home game for Argentina, with the majority of the crowd cheering for Messi. Despite his age, Messi remains a crucial player for his team. It's uncertain whether this will be his last Copa América, but fans enjoyed his performance in the opening game.

Milei renews call for 'May Pact'

Argentine President Javier Milei renewed his call for a new ‘Pacto de Mayo’ during a Flag Day rally in Rosario. He called on leaders to set aside party differences and work together to turn Argentina into a world power. He asked for the pact to be signed on July 9 in Tucumán a province in northwest Argentina. The President was due to return to Buenos Aires and then depart on an international tour, Buenos Aires Times reports.

Withdrawal from 2025 World Expo

Argentina has withdrawn from the 2025 World Exposition in Osaka, Japan due to financial issues caused by inflation. This makes it the third country to pull out of the event. The number of participating countries planning to build pavilions decreased to 51 out of the initial 60.

 Approval of  Milei’s economic reform bill

After six months in power, President Javier Milei achieved his first legislative breakthrough with the approval of a major economic reform bill. The bill includes privatisation of state-run companies, tax changes, economic deregulation, and special incentives for large foreign investors. The Senate vote took place amid heavy recession, with protests and clashes outside Congress. Milei now faces pressure from society to deliver economic results, according to the Buenos Aires Times . The approval of the bill has raised hopes for economic growth, but criticism and scepticism remain.

President requests an audience with Spanish King

Argentine President Javier Milei has requested an audience with Spanish King Felipe VI during his upcoming visit to the country, but the request has not been granted. This comes amid an ongoing diplomatic crisis, with insults exchanged between Milei and Spanish Prime Minister Pedro Sanchez. Despite tensions, Spain has agreed to the usual protocols for Milei's visit, including allowing his official plane to land and providing security. Milei will also be meeting with the regional premier of Madrid, Isabel Diaz Ayuso, Spanish media Olive Press reports.

Argentina's monthly inflation dropped to single digits in April, the first time in six months. This is attributed to austerity measures and a slowing economy. The annual inflation rate is still the highest in the world at nearly 300%. According to news agency Saltwire , experts believe inflation will continue to slow due to decreased demand and government spending cuts.

IMF bailout

The IMF has agreed to release the next tranche of loans for Argentina, praising President Milei's austerity measures, which have helped restore macroeconomic stability. The $792 million payment will be available in June, helping to alleviate the country's worst economic crisis in two decades, AP News reports. Despite criticism, the IMF acknowledges the decisive implementation of the stabilization plan and the faster-than-anticipated progress in the country's economic overhaul.

LGBTQ rights

Three women have died in Argentina after a boarding house was set on fire with two lesbian couples inside. A 62-year-old man has been arrested in connection with the attack, which is being described as a hate crime by the Argentine LGBT Federation. According to reports , the attack has sparked protests and calls for justice for the victims. The organization also criticized the government for its anti-LGBTQ+ policies.

Argentina to Armenia ambassador

Alen Simonyan, the RA NA President, received the Ambassador of Argentina to Armenia, Rafael Enrique Gonzalez Aleman. They discussed the mutual respect and trust between the two countries and the Armenian community's cultural role in Argentina. They also talked about the security situation in the South Caucasus and Armenia's efforts to establish peace, which Argentina supports, First Channel News indicated.

Argentina and Venezuela's diplomatic ties

Argentina is pressuring Venezuela to allow six opposition aides, seeking refuge at the Argentine embassy in Caracas, to leave the country safely. Venezuelan President Nicolas Maduro reneged on promises to allow their safe passage, putting their physical safety at risk. This move comes amidst Maduro's crackdown on political opposition ahead of the upcoming presidential elections. Argentina is expected to escalate diplomatic pressure on Venezuela to resolve the issue, with hopes of regional support, Saltwire reports.

The U.S. has approved the sale of Basler BT-67 aircraft to Argentina , including logistical support, at an estimated cost of $143 million. The sale aims to improve Argentina's security and national defence without affecting the military balance in the region.  The Latin American nation is seeking several Basler BT-67 aircraft, spare engines, parts, repair services, and major modifications. The package includes support services like aircraft and ground handling equipment, technical documentation, personnel training, and U.S. Government engineering services. The aircraft will enhance Argentina's airdrop and airlift operations, particularly in Antarctica.

‘Covid-like' flu affects dozens

A mystery flu-like illness in Argentina with symptoms similar to Covid-19 has left dozens critically ill with 60 cases reported in Buenos Aires. According to the Mirror , ProMed, the international public health surveillance system, issued an alert on April 17, stating an increase in severe atypical pneumonia requiring critical care. While no official reports have been made by Argentine officials, reports indicate that some have required mechanical ventilation. Most affected individuals are young without major risk factors. Over a third of those affected showed symptoms of psittacosis, a bird-borne disease, although many had no history of contact with birds, the Mirror reports.

President Milei eyes NATO partnership

Argentina has submitted a request to join NATO to deepen political and security collaboration with Western powers. The request was put forward during a discussion on regional security problems between Argentina's Defense Minister Luis Petri and NATO Deputy General Secretary Mircea Geoana in Brussels. Geoana welcomed Argentina’s bid to become an accredited partner in the alliance stating “Argentina plays an important role in Latin America,” she said at NATO headquarters. President Milei's administration is seeking to secure advanced technology, security systems, and training through the partnership. The request requires consensus from all 32 NATO members, and if approved, Argentina would become a global partner of the alliance.

Dispute as Brazil 'helps UK' get tourists to Falkands

Argentina has issued a furious complaint to Brazil over the UK's promotion of tourism to the Falkland Islands. The diplomatic dispute started when the UK was granted permission to have a display at the WTM Latin America trade show in São Paulo that promoted travel to the Falklands, the Express reports. Argentina's Secretary for the Malvinas, Andres Dachary accused the British government of attempting to gain support for its sovereignty over the disputed islands in the South Atlantic in a letter to the Brazilian ambassador in Buenos Aires. Dachary stated that Argentina has rejected "this new provocation," which he defined as an attempt to use economic measures to "consolidate the illegal British presence in our Islands."

La Rioja province sued in New York over missed bond payment

Creditors filed a lawsuit in a U.S. court against the Argentine province of La Rioja located in northwestern Argentina, intensifying the legal dispute over almost $10 million in missed bond payments. The province missed a main payment on its 8.5% dollar note due in 2028 on February 24. This is the subject of the action, which was filed on April 18 in a federal court in New York. The majority of the interest that was due in late March was paid by provincial officials, but the bond trustee kept some of that money, Bloomberg reports.

Argentina on March 26 accused Venezuela of cutting the electricity supply to its embassy in Caracas after hosting a meeting with Venezuelan opposition leaders. The embassy's power was cut off on March 25 in a "deliberate action that endangers the safety of Argentine diplomatic personnel and Venezuelan citizens under protection," according to a statement from the Office of Argentine President Javier Milei. This move is seen as a sign of souring relations between the two ideologically opposed governments. Tension between the two countries has been rising since Venezuela's socialist leader Nicolás Maduro criticised far-right President Milei's election victory, CNN reported.

Ten Argentines sentenced to life

Ten Argentinians on March 26 were sentenced to life in prison for kidnapping, torture, rape, and disappearance of over 400 victims during the 1976-1983 military dictatorship. Six of the defendants have died since the trial began three years ago. Victims included 23 pregnant women, some given forced abortions, and their newborns given to regime loyalist families. The accused, who all maintained their innocence, included military physicians, police officers, and jail officers, as well as a former province minister.

Hosting of Pan American Championships 2024

The 2024 GAMMA Pan American Championships will be held in Rosario, Santa Fe Province, Argentina from 5-7 July. The three-day tournament, hosted by GAMMA ARGENTINA, will feature 17 senior weight categories in MMA and Striking MMA. The event will also include the Pan American MMA Youth Championships for 16-17-year-olds. "It will be a pleasure to welcome the best athletes from all over the continent to a city with as much sporting significance as Rosario. We firmly believe that it will be a great boost for all combat sports in Argentina," GAMMA Argentina Secretary and Sport Director, Lucio Gianni said .

Protest against dismissal of science workers

The Association of State Workers of Argentina (ATE) is planning a protest at the Scientific Pole in Buenos Aires against the dismissal of science workers. According to Prensa Latina , the protest will condemn the termination of labour contracts of the National Agency for the Promotion of Research, Technological Development, and Innovation and the cuts promoted by the Government of Javier Milei in the National Council for Scientific and Technical Research (CONICET). Over 60 Nobel Prize winners have expressed concern about the impact of these measures on Argentina's development. Renowned scholars from different countries alerted the president in a letter that these sectors in Argentina are on the verge of "a dangerous precipice," which might have an impact on both the people and the rest of the world, Prensa Latina reported.  On March 26, President Milei announced that over 50,000 employees in the national public administration had lost their jobs during this period. He also verified that the contracts of an additional 70,000 employees would not be extended.

Surge in beef export

Argentina's beef exports reached their highest level in over five decades, reaching 82,548 metric tons in February. This is the largest monthly haul since 1967. The government of the Latin American nation ended export restrictions for some meat cuts, resulting in a record 160,478 tons of beef shipments in the first two months of the year. Argentina's farm sector is a major supplier of grains and beef. More than 75% of the nation's beef exports in January and February went to customers in China, followed by the European Union and Israel.

President Javier Milei defended the removal of national subsidies for transportation in the interior of the country and urged governors to use their resources. He warned that without the necessary tools, the adjustment would worsen and fall in the provinces. Milei suggested that they stop spending on shows and concerts. He also criticized the governor of Córdoba, Martín Llaryora, for demanding 20 billion pesos ($24 million) in subsidies and paying 27 billion pesos ($32.5 million) in official guidelines. “The governor of Córdoba (Martín Llaryora) crying for 20 billion pesos in subsidies and pays 27 billion pesos in official guidelines. Well, let him stop arranging with the media so that they speak well of him and do not criticize him,” he is quoted by local media La Voz .

Salary Index

The National Institute of Statistics and Censuses (INDEC) in Argentina reported an average salary increase of 152.7% in 2023, with annualized inflation at 211.4% throughout 2023. Public salaries rose 148.6%, while private salaries advanced 165.8%, resulting in a 20.2% drop and a 14.7% drop respectively. Non-registered employees saw a 115.3% increase in 2023. In December 2023, salaries fell 11.5% for private employees and 15.9% for public employees while non-registered employees saw a 7.6% increase, local media Ámbito reports.

Food prices soar

Food prices increased 3.4% in the first week of February, driven by dairy, meat, and baked goods. The increase was 2.3 percentage points compared to the previous week. Basic basket products saw an average increase of 13.4% and 10.3% in the last four weeks. Dairy products, oils, baked goods, and meat accounted for almost 90% of the increase, local media Todo Noticias reports.

Dollarizing of economy

President Javier Milei of Argentina has stated that the country is "nothing away" from dollarizing its economy, with a monetary base of $7.5 million and $7 million of reserves. He added that it may take a little longer than 2024 due to financial system reforms. However, he noted that the monetary base is at 87.5% and the government is working on a better balance sheet to reduce inflation rates. He also mentioned that the monetary base in pesos remains the same, but the dollars supporting it are increasingly larger. This is very important because the monetary base in pesos remains the same but the dollars that support it are increasingly larger. This shows how we are cleaning up the balance sheet of the Central Bank and the healthier the balance sheet of the Central Bank is, the level of underlying prices of the economy is lower, therefore the inflation rate decreases," he is quoted by local media Clarín .

Attack on police station

A group of neighbours attacked a police station with gunfire, damaging a patrol car and injuring a police officer on February 9 in Ciudad Evita, a city in Buenos Aires. The attack began after officers tried to identify two occupants in a vehicle with a license number which had been reportedly involved in a kidnapping and robbery case. Police employed non-lethal weapons, anti-riot ammunition, and shotguns to repel the attack, La Voz reported.

Inflation is forcing Argentina's Government to consider issuing new notes which may circulate from March.

Clarín reports that due to high levels of inflation, Argentina’s Central Bank (BCRA) is planning to issue larger denomination bills. Currently, the largest denomination note is that of ARS 2,000, less than £2. While no denomination has been confirmed yet, Central Bank is considering to issue ARS 20,000 and ARS 50,000 notes, which may start circulating in March. 

Milei will seek a referendum if Congress rejects his Emergency Decree

The country’s largest trade union holds a protest and has challenged the decree before the Supreme Court.

According to Infobae , Javier Milei said on Tuesday that he will seek a referendum if Congress rejects his Emergency Decree. On December 20th, only ten days after his inauguration, Argentina’s new President presented the National Emergency Decree (DNU) which includes over 300 measures to deregulate the economy. Milei addressed concerns that the DNU is too drastic and said the economic situation is far worse than his critics think. Legislators in the opposition say every deregulation proposal should be discussed separately. In addition, The General Labour Confederation (CGT), Argentina’s largest trade union, will march against the Decree on Wednesday. Besides condemning the proposal, members of the CGT have challenged the Decree before the Supreme Court. 

Milei announces new tax to pay for a $16 billion fine

The President plans to name it after a former Economics Minister.

La Nación reports that President Javier Milei is planning to create a new tax for his country to start paying the US$16 billion fine imposed by a federal court in New York for the seizure of the oil and gas company YPF. In September 2023, Judge Loretta Prezka ruled that Argentina had to pay that sum to minority stakeholders of the company. Milei said that they are willing to pay the fine, but don’t have the money right now, so he is considering a yearly tax in US dollars for all citizens, which would be named after Axel Kiciloff, the Economics Minister when Argentina seized YPF’s assets.

Storm alert in Buenos Aires and six provinces

The country’s meteorological service says Buenos Aires can expect heavy rainfall and strong winds.

According to Clarín, Argentina’s Meteorological National Service (SMN) issued a yellow weather alert for storms on Wednesday. SMN warned of heavy rainfall, thunderstorms, strong winds, and hail in Buenos Aires and six other provinces. In the south, the SMN warned that gusts can reach 90 km/h. The Meteorological Service urged people to avoid outdoor activities.

On Monday, December 18, President Daniel Ortega expelled the International Committee of the Red Cross (ICRC) from Nicaragua. In a statement , the ICRC said that it had "closed its office in Managua" following "the request of the Nicaraguan authorities, thus ending the humanitarian mission in the country”. The organisation emphasised that, just "as it does in more than 80 countries," its work "is exclusively humanitarian and strictly adheres to the principles of humanity, neutrality, impartiality, and independence."

Strengthened ties with China

China and Nicaragua upgraded their bilateral ties on Wednesday, December 20, the Chinese foreign ministry announced. "The two sides unanimously decided to upgrade relations between the two countries to a strategic partnership," according to a readout of a phone call between Chinese President Xi Jinping and his Nicaraguan counterpart Daniel Ortega. The meeting was organised to commemorate the second anniversary of the reestablishment of diplomatic ties between Managua and Beijing, which occurred after Nicaragua broke off relations with Taiwan.

Milei will not appoint an ambassador to Nicaragua

Argentina's new President, Javier Milei, has instructed his Minister of Foreign Affairs not to appoint an ambassador to Nicaragua, according to local media reports . Diplomatic relations would therefore be different from those maintained by his predecessor, Alberto Fernández.

Criticism from the UN  

On Monday, December 18, the United Nations Human Rights Council warned that Nicaragua is "drifting further and further away from human rights". " Every day that passes, the country is drifting further away from fundamental freedoms, intensifying the suffering of the people, fuelling the exodus of the youth, and undermining the future of democratic institutions," stated Nada Al-Nashif, the UN Deputy High Commissioner for Human Rights, from Geneva.

Religious organisations

On Sunday, December 17, the National Police of Nicaragua arrested eleven individuals accused of money laundering, using the U.S. Christian organisations "Sacudiendo las Naciones” and "Puerta de la Montaña" as a "front," as reported by 100% Noticias .

"We’re here to solve this problem at the root," he said in a recorded message. "For this, we need to solve our addiction to a fiscal deficit." 

The country's annual inflation rate is approaching 150%, and the poverty rate is at 40% and rising.

In his inaugural speech on Sunday, the radical libertarian Javier Milei stated that monthly inflation will likely range between 20% and 40% until February. He warned that hyperinflation of around 15,000% could occur if government spending is not drastically reduced.

Here are the 10 measures Milei aims to implement to save Argentina’s economy:

Investors, markets, and the IMF cautiously "welcome" the plan

Investors and markets cautiously greeted Caputo’s announcements. 'The news is positive,' said an Argentina expert from KNG Securities, as reported by Reuters. "It is a massive fiscal effort, with 3 ppts of GDP of spending cuts and 2.2% of additional revenues." The Managing Director of the International Monetary Fund, Kristalina Georgieva, also welcomed “the decisive measures, ” stating that they are “an important step towards restoring stability and rebuilding the country's economic potential.”

Although many Argentinians are filled with hope, the deep transformation of the South American country will not be an easy task for Javier Milei. Argentina’s new president does not have a majority in Congress, and the latter will need to approve many of his proposals.

Oil companies have not waited for the new announcements from Argentina's President-elect, Javier Milei, who will assume the presidency this Sunday. This Friday morning, Shell implemented an almost 15% increase in the prices of gas and diesel oil. YPF followed suit with a 30% increase in gas. Other companies, such as Puma and Axion, have also taken similar steps. The hike comes at the beginning of the long weekend, a time when consumption tends to rise, according to a report from El Clarin . Since October 23, gas prices have risen by 62.9%.

Lines form at supermarkets

Consumers fear new price increases. In the past week, supermarkets once again recorded a higher volume of sales compared to the week following the runoff election. A source from the supermarket sector revealed to El Clarín that 80% of the prices have risen by 22% since the runoff election.

Jair Bolsonaro arrives in Argentina

The former president of Brazil arrived in Buenos Aires to attend Javier Milei's inauguration ceremony on Sunday. After meeting with the future president of Argentina, Jair Bolsonaro said he hopes that Milei “manages to turn around a situation that is very difficult”, La Nación reports.

Ukraine’s Zelenskiy expected in Argentina

Ukrainian President Volodymyr Zelenskiy is expected to attend Javier Milei’s inauguration, diplomatic sources have confirmed to the Herald . Milei has consistently expressed support for Ukraine, and Zelenskiy thanked the future president for his "clear stance" following his victory in Argentina's elections.

Alberto Fernández will deliver his final message as president

The outgoing leader will give his last speech as the president of Argentina this Friday at 6 pm (GMT-3). It is expected to be a summary of his administration, as reported by La Nación . On Wednesday, Fernández bid farewell to the workers at the Casa Rosada, the president’s official workplace.

What they said

Sergio Massa, in a television interview on November 15 said, “Argentina has a problem, the programme with the IMF, which is inflationary, which needs to be re-discussed. We want to re-discuss the programme on the basis of the result of exports." Javier Milei in a speech in August also said, “We will put an end to the parasitic, stupid, useless political caste that is sinking this country."