Without interest in moving forward with the fiscal pact, President Javier Milei supports the Minister of the Interior, Guillermo Francos, and accuses the governors of not settling their accounts. As TN learned, the Executive will not negotiate with the provinces to compensate for their fiscal hole in the short term and will pressure them to reduce expenses that are not considered essential.
That is why he cut the sending of discretionary funds by 98%, removed the Interior Compensation Fund, a transportation subsidy, and maintained the extension of the 2023 budget despite inflation. As he said in the meeting with the 24 leaders shortly after taking office, the head of state wants the provinces to also make a big adjustment.
Read also: Javier Milei evaluates giving more space to the PRO in the Government in the midst of the crisis with the allied blocs due to the setback with the Omnibus Law
The fall of the Omnibus Law in Deputies ended up overflowing the tension between the governors and the Casa Rosada. There were accusations of treason against Martín Llaryora (Córdoba), Maximiliano Pullaro (Santa Fe), Carlos Sadir (Jujuy), Rolando Figueroa (Neuquén) and Gustavo Sáenz (Salta) and the possibility of making a tax agreement before March was cut off.
“The Government does not need the fiscal pact at the moment and we can reach the objectives we set without doing so. Caputo is settling the accounts and we are going to reach a fiscal surplus. They are the ones who are going to bleed, they have run out of recitals for friendly artists and the use of funds for politics,” an official close to the president told TN.
Javier Milei began the purge of officials from Rome and it is expected to continue upon returning from the trip (Photo: Government press).
The setback of the law in the Deputies ended with a purge in the Government. The President asked two of the officials who respond to provincial agreements to resign to maintain internal cohesion. These are the head of ANSES, Osvaldo Giordano, and the Secretary of Mining, Flavia Royon.
The closest example to this logic is the displacement of the Minister of Infrastructure, Guilermo Ferraro, who had disagreements with the chief of staff, Nicolás Posse. That's why Milei fired Giordano even though Human Capital Minister Sandra Pettovello pushed to keep him in office.
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Milei considers that he was betrayed and that no one who has been related to the legislative defeat can continue working in the Executive. He wants to keep the north and that there be no grays. In the case of the former head of ANSES, his wife, deputy Alejandra Torres, voted against the project in the treatment of the articles.
As TN anticipated, the President is expected to also move the rest of the officials who arrived through provincial agreements upon returning from their trip. These are the Secretary of Transportation, Franco Mogetta, and the director of Banco Nación, Daniel Tillard. “If they fire Giordano, everyone leaves. Milei is not someone who solves things halfway, if he purifies it he will make it complete,” a member of the Government leadership told this medium.
Javier Milei has already displaced two officials due to the fall of the Omnibus Law (Photo: REUTERS/Agustin Marcarian).By: REUTERS
What Milei does not analyze at the moment is a purge of the officials who were in charge of negotiating the law. She repeats to his collaborators that the Minister of the Interior, Guillermo Francos, and the president of the Chamber of Deputies, Martín Menem, are firm in their positions beyond the wear and tear caused by the fall of the project.
The measure that the ruling party took to reinforce its lines is to give the green light to make an agreement with the PRO. In principle, it would involve the formation of an interbloc in the Lower House with the party founded by Mauricio Macri. The intention is to add deputies from other forces that supported the proposals of La Libertad Avanza to achieve a majority.
Read also: Milei asked the head of ANSES Osvaldo Giordano and the Secretary of Mining Flavia Royón to resign
The idea that circulates through the corridors of Casa Rosada is that the deputy Cristian Ritondo would be the one targeted to remain as head of the possible interblock, which would be made official after the reorganization and the definition of PRO authorities.
Milei points to a rupture of the “democratic center” and seeks to deepen the rift so that two large polarized coalitions are formed. That is why he gave the order to officially disseminate the names of the deputies who voted for and against the Omnibus Law.
La Libertad Avanza and the PRO advance in “a merger” (Photo: LLA press).
The Minister of Security, Patricia Bullrich, announced that “a political redesign is coming” and highlighted the possibility of making a co-government agreement with the PRO after the frustration of the Omnibus Law. Yesterday she met with presidential advisor Santiago Caputo, Posse and Menem.
A high-ranking leader in the PRO told TN: “We are focused on continuing to strengthen the bloc. This month we show that we are united, that we have an excellent team with experience and that we firmly support the change that the majority of Argentines voted for. That discussion must take place within the PRO and when the time comes, the decision that we believe is best for the country will be made.”
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Beyond its attempt to obtain a legislative majority, the Government will continue to maintain acrimony with the governors and will seek to expose the provincial expenses of each one.
That is why he issued a document with the budget items of the provinces of Córdoba and Santa Fe. In the first, there are advertising expenses of $26,102,413.00 and in the second, allocations to Culture stand out for $13,701,267,000 and in Diversity for $5,546,358.00.