In Buenos Aires, Argentina, President Javier Milei delivered an optimistic annual address to Congress, hinting that a new agreement with the International Monetary Fund (IMF) is on the horizon. This declaration follows his divisive first year in office and various controversies surrounding his administration. Although he promised legislative support for the forthcoming IMF deal, tangible progress on the agreement had yet to be finalized.
Reiterating the themes of his 2023 presidential campaign just ahead of vital midterm elections scheduled for October 2025, Milei stated, “We went from talking about hyperinflation to talking about long-term stability.” He celebrated his administration's achievements, specifically noting a reduction in the monthly inflation rate from 26% in December 2023 to slightly over 2% in January, while also indicating an effort to pull the nation out of a severe economic recession.
During his speech, Milei claimed that Argentina is no longer a "global laughing stock," stating, “The eyes of the world are now on Argentina after a long time.” His remarks included a mention of tech billionaire Elon Musk, who recently highlighted Milei's economic strategies as inspiration for his approach to federal bureaucracy in the United States. Furthermore, Milei discussed potential shifts in trade policy, specifically mentioning Argentina's exit from the Mercosur bloc—an alliance of South American nations, if it becomes necessary to secure a free trade agreement with the United States.
Milei's address lacked specifics regarding the anticipated financing deal with the IMF, which his government has sought for months. This agreement is crucial for alleviating Argentina's stringent capital and currency controls and is seen as foundational to Milei’s broader economic reforms, which yielded Argentina's first fiscal surplus in 14 years in 2024. He asserted that the new agreement would enable a more efficient exchange rate system, aimed at attracting foreign investment and ultimately reducing inflation and boosting economic growth.
Despite the positive tone of Milei's speech, it was overshadowed by a boycott from members of the left-leaning opposition, the Peronist party, which left the congressional chamber notably empty. The Peronist bloc holds 46% of the Senate and 39% of the lower house, while Milei's La Libertad Avanza party controls a mere 10% and 15% respectively. This dynamic reflects the ongoing political tensions as Milei has often resorted to executive actions to bypass Congress, issuing decrees to deregulate industries and implement significant reforms, which has raised concerns regarding his governance style.
In a controversial move, Milei announced that he would appoint two Supreme Court justices by decree, bypassing the Senate—a decision criticized as an overreach of executive power. This has sparked backlash, especially because one nominee faces serious allegations related to money laundering. As Milei faces significant opposition, upcoming midterm elections will be pivotal. A favorable outcome could empower him to implement his extensive reform agenda without legislative concessions, possibly leading to a more authoritarian style of governance.
In recent weeks, Milei has also dealt with fallout from the promotion of a little-known cryptocurrency that gained value after his endorsement, only to eventually collapse, prompting multiple criminal complaints against him and raising the possibility of impeachment. However, he notably refrained from mentioning this issue during his lengthy address to Congress, which lasted over an hour.
