BUENOS AIRES — In a move that underscores President Javier Milei's unyielding commitment to his libertarian overhaul, Argentina's chief of staff, Guillermo Francos, resigned on Friday, paving the way for a sweeping Cabinet reconfiguration just days after the president's bloc clinched a resounding victory in the October 26 midterm elections. The 75-year-old Francos, a seasoned political operator known for his bridge-building skills, stepped down to allow Milei to "face without constraints the stage of government that begins after the national elections," as he stated in a poignant resignation letter posted on X. His departure, coupled with the simultaneous resignation of Interior Minister Lisandro Catalán, has ignited speculation about a broader purge aimed at installing a more ideologically pure team to accelerate Milei's radical economic agenda.
Francos' exit caps a tenure marked by pragmatic navigation through Argentina's fractious political landscape. Appointed chief of staff in May 2024 after serving as interior minister, he played a pivotal role in corralling opposition support for landmark legislation, including the Bases Law that deregulated swaths of the economy and the Anti-Mafia Law targeting corruption. His efforts were instrumental in forging the May Pact, a landmark agreement between the national government and provincial governors to foster consensus on fiscal reforms—a fitting bookend to his service, as both his first and last major acts involved convening such summits. Milei, in accepting the resignation, lauded Francos for his "loyalty and patriotism," crediting him with enabling "profound reforms that required continuous dialogue with various political forces." Yet, behind the gratitude lay tensions: Francos, hailing from Argentina's traditional political elite, had long been eyed with suspicion by Milei's hardline far-right base, who viewed him as a relic of the establishment the president vowed to dismantle.
The reshuffle's centerpiece is the appointment of Manuel Adorni, Milei's combative 45-year-old spokesperson, as the new Cabinet chief, effective Monday. Adorni, a vocal defender of Milei's anarcho-capitalist vision, will retain his communications role, positioning him as the administration's multifaceted megaphone and coordinator. In his first statement post-appointment, Adorni hailed Francos as a "sensational" contributor whose work on key laws was "invaluable," but emphasized that the incoming phase demands "deepening structural reforms" as the top priority. "There will be nothing more federal than the stage ahead," he declared, signaling intensified outreach to provinces while streamlining executive action. Adorni's dual hat—coordinating ministers while delivering the government's narrative—reflects Milei's preference for loyalty over experience, a stark contrast to Francos' consensus-driven style.
Catalán's resignation, after just 51 days in office, amplifies the domino effect. The deputy interior minister-turned-minister had been tasked with mending ties with resistant provinces amid Milei's aggressive spending cuts. In his farewell on X, Catalán expressed gratitude for the "trust placed in me to initiate a stage of dialogue and consensus," vowing continued support for La Libertad Avanza (LLA), Milei's party. Reports suggest Santiago Caputo, Milei's shadowy top advisor and nephew-in-law through marriage, is poised to assume a beefed-up Interior Ministry role, centralizing power in a "1990s-style" super-ministry. Other whispers include Justice Secretary Sebastián Ameriso eyeing the Justice Ministry and Javier Lanari, Adorni's deputy, stepping up as spokesperson. Francos himself may land a diplomatic plum, such as ambassadorship to Geneva.
This churn arrives on the heels of LLA's stunning midterm triumph, a referendum on Milei's shock therapy that defied polls and his 53% disapproval rating. With 40.84% of the vote—nine points clear of the Peronist Unión por la Patria—LLA surged to 111 seats in the 257-member lower house, up from 37, and bolstered Senate representation. The party flipped bastions like Buenos Aires province, long a Peronist fortress, capturing 41.5% there alone. Voter turnout dipped to historic lows, but the result—better than Milei's 2023 runoff—hands him veto-proof majorities and shields against impeachment. "Today begins the path to building a great Argentina," Milei proclaimed to jubilant crowds, framing it as a "tipping point" for his vision.
The electoral windfall was supercharged by a timely $40 billion lifeline from the Trump administration, a geopolitical coup that blurred lines between Buenos Aires and Washington. During Milei's October 14 White House visit, President Donald Trump pledged a $20 billion currency swap—dollars for pesos at fixed rates—to shore up Argentina's reserves, amid a peso plunge to 1,500 per dollar, a 93% devaluation since early 2022. Treasury Secretary Scott Bessent, a hedge fund veteran, sweetened the pot with another $20 billion from private banks and sovereign funds, touting it as a "private-sector solution" to avert default. Trump tied the aid explicitly to LLA's performance: "If he wins, we're staying with him; if he doesn't, we're gone." Post-victory, Trump hailed Milei on Truth Social as "doing a wonderful job," crediting U.S. backing for the "crushing victory." Bessent echoed the sentiment, calling Argentina a "vital ally" in Latin America.
Critics decried the package as undue interference, with former President Cristina Fernández de Kirchner—under house arrest for corruption—lambasting it on social media as electoral meddling. House Minority Leader Hakeem Jeffries slammed it as hypocritical: Republicans balk at domestic healthcare funding yet funnel billions to a "right-wing wannabe dictator." Even Colombian President Gustavo Petro, a Milei foe, bizarrely claimed "progressivism won," drawing ridicule. Economists, however, see upside: the infusion buffers against peso overshoots, compresses sovereign spreads, and enables currency flexibility, potentially returning bonds to pre-September levels. Markets reacted bullishly Monday, with stocks and bonds rallying on reform momentum.
Milei's reforms—slashing spending by 30%, achieving a 2024 budget surplus after 14 years of deficits, and taming inflation from 160% to 30%—have exacted a toll: poverty spiked initially, though recent data shows stabilization. Austerity foes, like disability advocate Juliana in Tucumán, fear vetoed funding laws now hang in jeopardy. Yet, the midterms suggest fear of Peronist relapse—hyperinflation redux—outweighed pain, per analyst Marcelo García of Horizon Engage: "Better than even the most optimistic hoped."
The reshuffle exposes fissures. Former President Mauricio Macri, after a post-election lunch at Olivos, publicly critiqued Adorni's inexperience, preferring YPF head Horacio Marín for the role: "A decision I judge misguided," he wrote on X, lamenting unresolved "internal disputes." The snub—over "milanesas" that didn't materialize into accord—signals fraying ties with PRO allies, ending the "coalition cabinet" era. Radio host Jorge Rial piled on, accusing Macri of opportunism. Adorni brushed it off with a breezy X post: "Have a beautiful night ahead."
As new lawmakers convene December 10, Milei's "second stage" eyes labor, tax, and penal code overhauls—urgencies Adorni vows to champion. With U.S. dollars flowing and congressional muscle flexed, the stage is set for unbridled deregulation. But as Francos' moderate voice fades, questions linger: Can ideological zeal sustain without the deal-making finesse that tamed Congress before? Analysts like those at Americas Quarterly warn Milei must "restore dialogue" to cement gains. In a nation of 46 million, where chainsaw-wielding populism meets entrenched Peronism, the answer will define whether Milei's gamble yields prosperity or peril.
