Argentine President Javier Milei will travel to the G7 Summit this week with a reduced entourage. The Minister of Foreign Affairs, Diana Mondino, described, in a complimentary tone, as a ‘firefighter’ behind the scenes at Itamaraty, will not be part of the group. Last week, her presence was confirmed, as she told journalists present at the Argentine Council for International Relations (CARI) event. This Monday, as reported by journalist Natasha Niebieskikwiat, from Clarin in Spanish, Milei decided that Mondino will not travel and transferred to her sister, the general secretary of the Presidency, Karina Milei, one of the areas of the Ministry of Foreign Affairs – the Foundation Argentina for the Promotion of Investment and International Trade.
The emptying of the Ministry of Foreign Affairs occurred when attention is focused mainly on the Ministry of Human Capital (which encompasses the portfolios of Social Development, Education, Culture and Labor, in addition to Social Security). Area minister Sandra Pettovello, a friend of Milei, is in the eye of the storm after questions from the courts over the distribution of tons of food stored and about to expire. In her ministry, reported Spanish-language Clarin journalist Santiago Fioritti, there have already been 40 advisors who have been fired or who have given up.
At the same time, last week, the Chamber of Deputies approved a project, criticized by Milei, which provides for improvements in pensions. He accused the opposition and politics in general (‘caste’, he says) of wanting to achieve the zero deficit that the government achieved. “I’m going to veto it,” he warned. If the Senate, where opposition to the government is even more robust, approves the measure, this could be the first law of the Milei era – Congress could reject the presidential veto, according to analysts. He often says that his government has made “the biggest adjustment ever seen by a country” and, despite controversial statements and the increase in unemployment in several sectors, it maintains popular support, according to opinion polls. “But we need to be aware of this support. Everything will depend on the behavior of the economy and the patience of Argentines,” said analyst Rosendo Fraga, from the Nova Maioria Study Center, in Buenos Aires.
There is also expectation regarding the so-called Base Law – the former Bus law and the first project sent by Milei to parliament, after taking office, but which was withdrawn by the government when it saw that it would not be approved. Days later, after being reduced, the text returned to Congress with less ambitious proposals – the number of companies to be privatized was drastically reduced and could still shrink even further to be approved. Milei does not have a majority in the National Congress.
So far, the adjustments (which he calls ‘chainsaw’) are being carried out by the Executive through decrees or the equivalent of Provisional Measures (MPs).
This week the inflation for May will be released and the expectation is that there will be a further drop in the index, which is the biggest torment for Argentines – Argentina is the only country in South America, with the exception of Venezuela, which has not yet resolved the extremely high inflation. The drop in official inflation is seen as a positive result for the government. However, the rise of the parallel dollar (‘blue’) in recent days, given the uncertainties of government projects in Congress and in the administration itself, generated turbulence.
Milei will embark for Italy where President Lula will also be present at the G7 Summit. It will be the first time that the two will be at the same event. In these six months, they didn’t speak to each other.
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