Overview
- Axel Kicillof’s slate beat La Libertad Avanza in Buenos Aires Province by roughly 13 points, 47.3% to 33.7%, exposing strategic errors and weakening the presidency.
- Economic activity peaked in February and has since fallen as the peso’s slide quickened from July, pushing up country risk and unnerving markets.
- Milei and Economy Minister Luis ‘Toto’ Caputo requested bailout help from the United States, with Treasury Secretary Scott Bessent engaging to rebuild credibility.
- After the defeat, Karina Milei was sidelined as strategist Santiago Caputo regained influence, and the president shifted tone with a budget that boosts universities, health care, disability aid and social outlays above inflation while still claiming a surplus.
- Congress intensified pushback by overturning vetoes and rejecting key moves, budget assumptions face skepticism, and new Interior Minister Lisandro Catalán began courting governors with fresh transfers as polls show a narrowing national race.