Milei Swaps Out His Cabinet Chief in Bid for Sign-Off on Reforms
(Bloomberg) -- President Javier Milei replaced his cabinet chief as the government’s major economic reform plans languish in Argentina’s congress, hoping a seasoned negotiator can get them over the finish line.
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Milei accepted Nicolas Posse’s resignation on Monday night, marking the most high-level departure since the libertarian leader took office Dec. 10. Interior Minister Guillermo Francos, who coordinated negotiations between the president and congressional leaders over the reform package, replaced Posse as cabinet chief.
Though it’s one of the earliest departures of a top cabinet post in any recent presidency, investors appeared at peace with the move. Argentina’s sovereign dollar notes edged higher across the curve Tuesday, erasing earlier losses. Bonds due in 2029 rose 0.4 cents to trade as high as 56 cents on the dollar, according to indicative pricing data compiled by Bloomberg.
Francos immediately distinguished himself from Posse — who never spoke to the press — by hosting a news conference Tuesday morning. The new cabinet chief said he’d spend his first day on the job talking with Senate leaders about the status of Milei’s so-called omnibus bill and fiscal reform.
“The president has asked me to give a boost to our governing amid this political situation,” Francos told reporters. “We’re navigating a path to seek consensus on a bill in Congress.”
Milei warned last week that his entire cabinet would be put “under analysis” depending on whether Congress approves the bill. Posse resigned right before Milei departed Monday for a week of meetings in the San Francisco area with top executives from Apple Inc., Alphabet Inc. and Meta Platforms Inc., among others.
Investors were becoming nervous about Milei’s delayed reforms that promise wide-ranging economic measures, which the libertarian initially hoped to have signed by May 25. The president recently conceded that the package, and a symbolic pact with governors, may not happen until June or July.
Posse became a key figure during Milei’s campaign and later a top negotiator in the early months between the government and the International Monetary Fund over Argentina’s $44-billion program. With a corporate background and no formal political experience, Posse kept a low profile and avoided public speaking outside of required remarks before Congress.
Before joining Milei’s campaign, he climbed the executive ranks for several years at Aeropuertos Argentina 2000, a part of the Corporacion America holding company where Milei once worked for billionaire Eduardo Eurnekian. Posse was lauded by politicians and diplomats for adding structure to Milei’s campaign after the outsider stunned the nation by winning a primary vote last August.
--With assistance from Kevin Simauchi.
(Updates and recasts with market reaction.)
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