Background on Javier Milei and His Relevance
Javier Milei, an Argentine politician and leader of the libertarian party La Libertad Avanza, has recently received a loan from the United States under the administration of Donald Trump. This development has sparked discussions and conditions set by Washington, particularly focusing on political stability for Milei’s libertarian project in the Argentine Congress.
US Involvement and Conditions for the Loan
According to sources from the Casa Rosada (Argentine equivalent of the White House), the United States has requested a political agreement from Milei as a condition for the loan. This agreement aims to ensure political stability and gobernabilidad (governance) for the libertarian project in the Congress Nacional following the October legislative elections.
Mixed Reactions and Skepticism
There have been differing opinions regarding the directness of US involvement. Some sources, like those close to Córdoba Governor Martín Llaryora, have dismissed the idea of such direct instructions, labeling them as speculation. Meanwhile, governors more distant from Casa Rosada, including those in the Provincias Unidas coalition facing Milei in October, have lowered expectations.
Provincias Unidas and Post-October Hopes
Despite the skepticism, members of the Provincias Unidas coalition aim to secure a significant number of legislators in the Congress. They anticipate gaining more seats after October’s elections to compel the ruling party into negotiations. Key figures in this coalition include Martín Llaryora (Córdoba), Maximiliano Pullaro (Santa Fe), Carlos Sadir (Jujuy), Gustavo Valdés (Corrientes), Nacho Torres (Chubut), and Claudio Vidal (Santa Cruz).
Milei’s Recent Appointments and Policy Changes
Following the electoral losses in Buenos Aires Province and subsequent rift with provincial governors, Milei has attempted to woo governors to maintain his political course. He has distributed funds to four provinces and included a significant allocation for the National Treasury Contribution (ATN) in the 2026 budget.
US Influence on Fund Distribution
A study by Politikón consultancy revealed a substantial increase in the budgetary credit for the National Treasury Contributions (ATN) – growing by 689% compared to the 2025 budget proposal and by 147% relative to the current budget. This development assumes significance given the recent veto of a Congress-approved law reforming fund distribution and could be interpreted as a political signal to influential governors.
Key Questions and Answers
- What is the main condition set by the US for the loan to Argentina? The US has requested a political agreement from Javier Milei to ensure gobernabilidad (governance) for his libertarian project in the Argentine Congress following October’s legislative elections.
- How has the US influenced Argentina’s fund distribution? The US has indirectly affected Argentina’s fund distribution through a significant increase in the budgetary credit for the National Treasury Contributions (ATN) in the 2026 budget, which could be seen as a political signal to influential governors.
- What are the expectations of the Provincias Unidas coalition? The Provincias Unidas coalition aims to secure a significant number of legislators in the Congress, anticipating gaining more seats after October’s elections to compel the ruling party into negotiations.
