Politics Economy Local 2025-11-25T10:32:50+00:00

Milei reshuffles cabinet amid economic uncertainty

President Javier Milei has introduced new ministers for Security and Defense, aiming for political continuity. However, these moves come amid a major financial crisis: the collapse of a promised $20 billion loan from the US private sector, leading to a surge in country risk and market uncertainty.


Milei reshuffles cabinet amid economic uncertainty

President Javier Milei starts his official Tuesday with a Cabinet meeting marked by the welcome of the two new ministers and the urgent need to reorder the legislative and financial strategy regarding the 2026 budget and reform package. The official strategy seeks to show political continuity in Security and Defense, while facing the biggest post-electoral economic setback: the halt to the financial cushion promised by the US private sector. According to what Argentine News Agency learned, Milei will receive Alejandra Monteoliva (new Minister of Security) and Lieutenant General Carlos Presti (new Minister of Defense) at the Casa Rosada, who replace Patricia Bullrich and Luis Petri, respectively. The departure of Bullrich and Petri is formalized under a political promotion logic: both will take office in Congress on December 10, with the central objective of consolidating the first minority and negotiating the approval of the 2026 Budget and the package of reforms in extraordinary sessions. Monteoliva, Bullrich's successor, is seen by the ruling bloc as a guarantee of the 'Bullrich Doctrine' in the fight against narco-terrorism. Presti's appointment — the highest-ranking military in charge of Defense since the return of democracy — seals a strong ideological gesture, seeking to 'demonize' the Armed Forces. Monteoliva, Bullrich's choice to maintain her influence in Security. Analysis: the shadow of financial uncertainty. The political reordering and legislative triumph contrast with the tensions that persist on the financial front. The President's final strategy would include a trip to the US in December for the 2026 World Cup draw, with the hope of getting a photo with Donald Trump that would calm financial turbulence. The Wall Street Journal revealed that the bloc of banks would only be willing to grant a loan of US$ 4,000 or 5,000 million, barely enough to cover the January debt maturity, which reignited uncertainty in the markets and raised the Country Risk again. Despite this setback, those close to Milei seek to give a signal of strength, ensuring that Washington's backing to meet commitments with the IMF is guaranteed. The fate of the economic plan remains linked to the confidence of the United States. The big problem at the end of the week was the suspension of the US$ 20,000 million refinancing loan from international banks (JP Morgan, Citi, BofA), negotiated with the backing of Scott Bessent.