Argentina: Milei administration targets PASO suspension and budget approval

The administration of Javier Milei is pursuing a dual political and economic strategy aimed at securing re-election. A central component of this plan involves negotiating with provincial governors to potentially suspend or abolish the PASO (primary elections) to reduce political friction and consolidate power.

In the legislative sphere, the government is advancing its national budget. This budget includes controversial measures such as fiscal benefits for specific thermoelectric power plants and adjustments to tax credit execution timelines for national road concessionaires. The administration has also had to navigate internal tensions, specifically regarding proposed cuts to disability services, which prompted a revision of budget allocations to maintain party cohesion.

While the government seeks consensus with governors through discussions on provincial transfers and tariffs, the success of these maneuvers remains tied to economic performance and the ability to manage legislative hurdles in the Senate.