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1. Alliances wrap up their campaigns ahead of Sunday’s elections

On Sunday, October 26, Argentines will vote to renew 127 seats in the Chamber of Deputies and 24 in the Senate in key elections that will define the political direction of Javier Milei’s government. It will also be the first national election using a single paper ballot. In the Chamber of Deputies, La Libertad Avanza risks losing 22% of its seats, while the PRO puts nearly 60% at stake, and Fuerza Patria (formerly Unión por la Patria) 47%. In the Senate, the ruling party is not renewing any seats, although it will still fall short of the one-third needed to uphold presidential vetoes. Milei closed the La Libertad Avanza campaign in Rosario, after suspending events in other provinces, accompanied by Santa Fe candidate Agustín Pellegrini. At the same time, Fuerza Patria opted for a decentralized strategy, with multiple activities in the suburbs and interior of Buenos Aires instead of a central event, seeking to reinforce its territorial presence and direct connection with voters.

El Cronista: El pedido de Milei y las nuevas alianzas en el Congreso de mano del “nuevo Caputo”

2. Changes in the national cabinet have begun: the Foreign Minister has resigned and the Minister of Justice will leave

Foreign Minister Gerardo Werthein has submitted his resignation and will leave office next Monday, after the national elections, initiating a series of changes in Javier Milei’s cabinet. The official communicated his decision to the President and Karina Milei at a meeting in Olivos, citing differences with other members of the government. His departure was expected after tensions with presidential adviser Santiago Caputo during the last tour of the United States, where criticism arose over the lack of coordination in communication with Donald Trump and the parallel handling of diplomatic ties through other channels. Werthein’s departure will be joined by that of Justice Minister Mariano Cúneo Libarona, who will also leave his post after the elections. The executive branch anticipates further changes: Ministers Luis Petri (Defense) and Patricia Bullrich (Security), along with presidential spokesman Manuel Adorni, could step down due to their candidacies. Among the possible replacements is the mayor of General Pueyrredón, Guillermo Montenegro, who would take on a unified portfolio of Justice and Security. Meanwhile, Javier Lanari, currently Adorni’s number two, would be appointed as the new presidential spokesperson. The changes are expected to be made official next week, marking a new stage in the configuration of the national cabinet.

Infobae: Nueva salida del Gabinete: Mariano Cúneo Libarona se irá después de las elecciones

3. The government anticipates further reforms in Congress next year

The Secretary for Deregulation, Alejandro Cacace, announced that the government will send a new “Basic Law 2” and a “Leaf Law 2” to Congress on December 15, with reforms that were left out of the first version. The initiatives will come from a new “May Council” and will include changes in labor, union, judicial, and educational matters, as well as the modernization of the Civil Code and the defense of competition. For his part, Labor Secretary Julio Cordero announced a labor reform that will introduce “dynamic wages,” linked to individual productivity, and agreements by company rather than by activity. The government is thus seeking to make the labor market more flexible, reduce union interference, and maintain fiscal balance, with the support of the PRO and UCR parties.

El Cronista: Reforma laboral: el plan de Milei para que el sueldo dependa del rendimiento y las paritarias sean por empresa

4. Economic activity grew 0.3% in August according to INDEC

In August 2025, the monthly economic activity estimator (EMAE) registered a 2.4% increase year-on-year (YoY) and 0.3% compared to July in the seasonally adjusted measurement, INDEC reported on Wednesday. The trend-cycle component registered a 0.1% decline. Thus, the economy returned to positive growth in April, after three consecutive monthly declines. Compared to August 2024, ten of the sectors of activity that make up the EMAE recorded increases in August, among which Financial intermediation (26.5% yoy) and Mining and quarrying (9.3% yoy) stand out. Both the World Bank (WB) and the International Monetary Fund (IMF) cut their economic growth projections for Argentina. The former now estimates 4.6% (previously 5.5%) and the latter places it at 4.0% (previously 4.5%).

INDEC: 
Estimador mensual de actividad económica (EMAE)

5. Scott Bessent reiterated his support for Argentina after the swap was signed, while major banks demand guarantees

After the swap agreement with the Central Bank (BCRA) was signed, US Treasury Secretary Scott Bessent once again gave strong backing to Javier Milei’s administration and stated that the United States seeks to avoid “another failed state in Latin America.” “As we work to stabilize and secure the Western Hemisphere and make the United States safe again, the Treasury has signed an economic stabilization agreement with the Central Bank of Argentina. President Javier Milei’s efforts to reverse his country’s decades of decline, stemming from the radical leftism of Peronism, are crucial. Argentina now has the opportunity to achieve economic freedom, and our stabilization agreement is a bridge to a better economic future for Argentina, not a bailout,” said the Treasury Secretary, architect of the financial aid package for Argentina. However, major U.S. banks (including JPMorgan Chase, Bank of America, Goldman Sachs, and Citigroup) are analyzing how to structure the $20 billion loan to Argentina, and before releasing the funds, they are demanding guarantees and collateral. According to some sources, the financial institutions are seeking guarantees or some form of backing, either from Argentine assets or from the US Treasury itself, to ensure that they will recover the money they will lend “to a country with a long history of crises and defaults.” The banks fear being overly exposed to Argentina’s financial fragility and are waiting for a decision on what type of guarantee the Milei government could offer or whether, instead, the US Treasury will guarantee the loan.

La Nación: Scott Bessent habló tras la firma del swap con la Argentina y las declaraciones de Trump