Argentina's Milei Accused of Extorting Provinces to Secure Congressional Votes

Governor Axel Kicillof alleges that President Javier Milei is using the distribution of public funds as a tool of political extortion. He says the national government first cuts transfers to the 24 provinces, then offers partial refunds in the form of loans or advance co‑participation payments, demanding legislative support to suspend the PASO primary elections and improve Milei’s re‑election prospects for 2027. Kicillof quoted the president’s method: “El método elegido es la extorsión. Consiste en utilizar la distribución de recursos públicos como moneda de cambio para obtener apoyo legislativo.”

Kicillof also highlighted the economic fallout of Milei’s policies: more than 300,000 jobs lost, 26,000 firms closed, and declines of 12% in industry, 5% in commerce and 15% in construction. He warned that the 24 jurisdictions have collectively lost over 47 trillion pesos (about four percent of GDP) since 2023, with household debt moratoriums reaching levels higher than the 2001 crisis. According to Kicillof, the government’s priority is re‑election rather than economic recovery, using financial pressure on provinces to achieve its political aims.