"The indicators are not evolving as positively as we initially expected." Javier Milei, who over these three years in government has found various rhetorical twists to navigate the setbacks of his economic plan, had this moment of maximum sincerity on Thursday in an interview with Radio Rivadavia. It was the first time he admitted it that way. Within the government's inner circle, the President's remarks caused no surprise. First, because part of the political wing has been detecting for months that the street is showing signs of distress, such as unemployment or the lack of purchasing power. Also because, according to sources at the Casa Rosada, this picture that Milei painted—and which he attributed solely to external factors—had been outlined by the Minister of Economy, Luis Caputo, upon his return from Thailand, where he traveled for the annual meetings of the International Monetary Fund (IMF) and the World Bank. Sources in the know say that, upon returning to Argentina, Caputo described to the political table a global situation that is "not very promising" geopolitically going forward, with an impact on markets. The Minister of Economy warned the government's most senior officials about the scope of that "external shock" observed by the international actors he met with, and how it could affect Argentina, especially with growth lower than expected. Right at the start of the electoral campaign toward 2027. This week, the country risk hit its highest peak in a long time: 710 points. "This impacts the variables at the moment when you least want it," laments a senior government source who, for now, clings to the problems of the world economy to justify the shift away from local targets and to explain why Argentina is ultimately not going through the promised best 18 months in history. "The slowdown in growth has a very clear explanation: there is a world experiencing a major shock, which hits emerging markets, and Argentina is growing less," argue official sources, who quickly clarify: "But neither the direction nor the program is being questioned." Kyriakos Pierrakakis, Ekniti Nitithanprapas, Kristalina Georgieva, Olayemi Cardoso and Luis Caputo at the IMF and World Bank annual meetings in Bangkok. Milei reiterated this week that he intends to "die with his boots on." Nevertheless, in official offices, officials display a less relaxed demeanor than in other times and have begun an internal debate to see if they can soften the President's position. They resort to creativity to think of measures that, within the plan, can appease the electorate in the face of a course that will not be as auspicious as the government had promised. They are thinking about how to reactivate through investment, credit, and some political maneuvers. A RIGI for SMEs is one of the proposals under analysis. In the government, there are officials who also believe the 2027 subsidy removal scheme could be slowed down. At this point, quite a few are excited that perhaps the IMF will relax the targets for Argentina amid the international turbulence. "Measures to reactivate will come out, ones that don't clash with the plan, like credits with FGS funds. But today those measures are not clear," they describe in the government. Everyone clarifies that it will ultimately depend on the Economy Ministry and Milei's filter. The President's trip to Spain also failed to bring calm to some figures within the ruling party who say they don't know "what's wrong with" the President, whose reelection is not yet guaranteed. People close to him report he is irritable. There he lashed out at a journalist without fear of being recorded. His bandage on his neck sparked all kinds of comments, including internal ones. "Some even asked whether he was having his double chin liposuctioned," complained a government source. The official version: a fall in the shower. On the contrary, there are sectors internally that are becoming convinced that the constant criticism of Milei repositions him: "If they attack him all the time, they victimize him. He's a guy who curses, but he's indignant that the powerful attack him. And people can take his side, like an ordinary guy whom everyone is trying to find fault with." There was, however, agreement in official offices that the way the President handled the debate over "not making it to the end of the month" was not the most empathetic. The most favored message, on the contrary, will seek a Milei who talks about what has been achieved: reduction of inflation, drop in poverty, control of the streets. Within the Casa Rosada, a highly verticalist structure, the most influential officials avoid getting into the President's day-to-day affairs and his controversies. "We are all committed to the model; after that, each with their own ways," they say, to avoid criticizing their boss. Meanwhile, the political dilemma mixes with the economic one. Caputo used his summary of the trip to Thailand to insist, once again, that an agreement with the governors is needed as a backstop to weather the international turbulence and win the election. "He's a trader, his variable is the market, but in another part of the government there is a political reading that for the ruling parties it is better to close deals in an election year. Besides, if you close now, you give the opposition advance notice of everything you're going to do and lose the element of surprise," says a source, laying out the conflict that continues to be fought within the government. The government's political table
Presidency. Karina Milei and the Menems have a willingness to reach agreements (unlike in 2025); they are negotiating, but they don't want to "give themselves away" too early, say those who speak with them. This is the sector most hopeful that the economy can improve in a few months and that LLA can thus achieve a more favorable pact. In that camp, they insist that the governors support the elimination of the PASO primaries and that the details of the 2027 agreement be discussed later. There are governors who state that if there are no guarantees and everything is not finalized together, they will not give their votes. The disorderly dialogue, and also the exasperation of the most impatient, is perceived in conversations with the various actors in the inner circle. Not only are there differences regarding the deadline to define the agreements (October, November, December). Voices also emerge that do not rule out that if the discussion over the PASO is not finished this year, it will carry over to next year, contrary to other sources who warn of possible judicialization. The National Electoral Chamber has already said it should be done before the end of the year. The different views within the Casa Rosada on the 2025 legislative elections also influence the debate for 2027. While the Karina-Menem camp believes that by leveraging the libertarian brand they gained a know-how that led them to victory and to strengthening Congress, their internal detractors warn that this was possible thanks to the rescue by Scott Bessent. Treasury Secretary Scott Bessent. KEVIN DIETSCH - GETTY IMAGES NORTH AMERICA. "Everything is starting to smell the same as with [Mauricio] Macri, it seems everything is heading the same way... You have the precedents of Cambiemos and what happened in 2025... I don't know what they're waiting for [to make a deal]!" exclaims a libertarian voice pushing to close now. The internal sources who view the process the government is going through these days with pessimism reflect on another issue: the Bullrich factor. "You have the Patricia problem, which Macri didn't have," they say. In the upper echelons of the government, they already let it be known as "probable" that Milei will offer her the vice presidency. A signal for her to calm down? She said she won't accept just for the sake of it. She wants decision-making power. And her street-level timing has been making her feel, for months now, rumblings that the Casa Rosada ignores. The senator is playing hard to get. This Friday she published a video. She said that she "knows Argentina." The same week she reaffirmed she is ready to be president. In her circle, they assure that she won't announce a break now, despite the fact that she set her new material to music by a band that, suggestively, is called Plan B. By Paula Rossi