Forced by political weakness, Milei is set to explore joint government with PRO

Although Macri has lost faith in the president’s ability to carry out his plan, he remains interested in placing his allies in key positions

Pensions have fallen to their lowest purchasing power since 2001. Bus fares will exceed AR$1,000 (US$1.23 at the official rate, US$0.86 at the MEP rate) following subsidy cuts and several cities have already warned that they could suspend public transportation. The beginning of the school year is in doubt due to the slashing of an incentive fund for teachers. President Milei’s cabinet has been decimated after the departure of the Energy Secretary and the head of the ANSES, two decisions made in retaliation against governors Martin Llaryora (Córdoba) and Gustavo Saénz (Salta). Infrastructure Minister Guillermo Ferraro is also on his way out of the government.

Exultant from the spiritual journey he made through Israel and the Vatican, Javier Milei returned to Argentina, applauded in the first-class cabin of a commercial flight. The president must now tackle his domestic agenda and reshape his cabinet. The government rejects the idea of agreements and broke off negotiations with the governors, whom it treats as criminals, as well as with the so-called “moderate opposition” in Congress.

It remains to be seen what the Supreme Court or Congress decide regarding the validity of the mega-decree Milei issued in December, the only major economic policy tool the government still has. A lawyer specialized in constitutional law with close ties to PRO told Ambito that if the Supreme Court respects its own precedents on the matter, it should reject the decree.

Within this context of extreme political weakness and institutional fragility, Milei will negotiate with Mauricio Macri the possibility of forming a joint government with PRO. But La Libertad Avanza (LLA) now sparks doubts and mistrust. Not only in the former president but also in his inner circle. Pressing management problems repel main PRO members like Diego Santilli, who requested that the terms of a potential agreement with LLA be discussed internally. 

Another Macri ally, María Eugenia Vidal, is also unwilling to take the helm at ANSES. Alejo Maxit, a former Cambiemos official who worked there during Emilio Basavilbaso’s tenure under the Macri presidency, is rumored to be in the running for the position.

Macri is particularly interested in getting his former Transportation Minister Guillermo Dietrich to lead the Infrastructure Ministry, which encompasses Transportation and Communications and is currently under the orbit of Economy Minister Luis “Toto” Caputo. Macri is using LLA adviser Santiago Caputo as a fulcrum to facilitate the landing of his people in the government. The main opposition to this is Karina Milei, who continues to reject a merger between PRO and LLA.

“When you get back, we’ll talk.” In an almost disdainful tone, Macri exchanged messages with Milei while the president was in Israel and Rome. The relationship is deteriorating, and the former president is disillusioned. He admires Milei’s conviction to carry out austerity measures without considering the political costs but doubts his management capacity. Without allies and confronted with the governors, Milei is now withdrawing into his inner circle while he awaits a call from Macri.

Orginally published in Ámbito

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