Argentina President Javier Milei Faces Deepening Political and Economic Crisis

President Javier Milei’s administration has intensified a “cultural battle” while struggling to attract foreign investment, with the economy showing sharp downturns. Economy Minister Luis Caputo told corporate leaders that despite facilitating conditions, investment remains low, and business groups demanded further tax cuts. Recent data reveal the closure of about 25,000 SMEs, the loss of 265,000 registered jobs, rising financial delinquency and under‑utilised industrial capacity, alongside higher utility and transport tariffs.

The government cites support from the International Monetary Fund despite missing previously agreed targets, and looks to the upcoming World Cup to ease social tensions. Meanwhile, Milei’s popularity is slipping: polls show opposition figures such as Axel Kicillof and Myriam Bregman gaining ground, and internal dissent, notably from Patricia Bullrich, threatens his re‑election prospects. Corruption probes have expanded to include former Economy Minister Caputo and associates linked to former ARCA and ARSAT executives. These developments suggest a mounting political and economic crisis that could reshape Argentina’s near‑term political landscape.