Argentina’s Congressional Period Opens with President Milei’s Address

On March 1, Argentine President Javier Milei inaugurated the new Congressional period with a speech outlining his administration’s achievements and priorities for the year ahead. 

In his address, the President emphasized his Cabinet’s efforts in delivering what he described as “the most successful year” in terms of economic performance. He highlighted key accomplishments, including a significant reduction in inflation, continued economic growth, a decrease in public employment, and a lower fiscal deficit. 

Looking ahead, one of the most notable announcements was the government’s intention to seek Congressional approval for a new agreement with the International Monetary Fund1. According to the President, securing this agreement would pave the way for a more flexible foreign exchange policy, a longstanding request from foreign investors. 

This speech sets the stage for a pivotal political year. In October, the ruling coalition, La Libertad Avanza, will face its first major electoral test in the midterm elections. With a significant number of seats at stake, the government has an opportunity to strengthen its legislative position, which has been relatively weak during the first half of its mandate. The outcome will largely depend on the administration’s ability to sustain political momentum while delivering continued economic progress, as well as the strategies adopted by the main opposition parties. 

¹ On March 11, the government published a Presidential Decree approving the new agreement with the IMF. The norm also set that the new loan would be destined to settle the Treasury’s debt with the Central Bank. Now, the Congress has the power to either approve or reject the Decree.