June 27th, 2025
1. Argentina maintains its alignment with Israel
In the midst of what President Donald Trump called “The 12-day war” between Israel and Iran, the Argentine President, Javier Milei, stated that Iran “is an enemy of Argentina” and that, if the Asian country develops as a nuclear power, the world will be “in trouble”. In this context, members of the Unión por la Patria (Union for the Homeland) are promoting a request for impeachment against President Javier Milei, after he stated that “Iran is an enemy of Argentina” and declared his “unconditional support” to Israel and the United States in the midst of the war that has intensified the violence and crossfire in the Middle East. Likewise, the Argentine government began this week with a series of four flights to evacuate non-resident Argentines who had been stranded in the midst of the conflict.
Infobae: Javier Milei afirma que Irán “es un enemigo de Argentina”
2. Guillermo Francos Presented His First Management Report in the Senate
In a tense political climate following the Supreme Court’s ruling that upheld Cristina Kirchner’s conviction, the Senate opened its doors to receive the Chief of Staff, Guillermo Francos, who delivered his second management report of the year in Congress. After his initial presentation, he answered questions from the legislators. The Chief of Staff praised the economic management carried out by the government and issued a stern warning to senators, who have pending the debate on two initiatives, already approved by the Chamber of Deputies, that mandate an increase in retirement incomes. According to Francos, if both projects become law, they will cause an impact of 0.8% of the GDP. Francos’ presentation occurs in a context of tension in Congress, as President Javier Milei anticipated that he will veto the retirement projects as well as the one declaring a disability emergency, also pending in the Senate. Prior to his presentation, the Chief of Staff’s Office responded in writing to more than 900 questions posed by 48 senators. The queries included topics related to Economy, Treasury, and Finance; Production, Industry, and Commerce; Infrastructure and Public Works; Social Security and Welfare; International Relations and Sovereignty; Justice and Penal System; Education, Health, and Social Policies; Public Administration and Employment; Security and Defense; Science, Technology, and Environment; Inclusion and Digital Transformation; and Emergencies and Catastrophes.
La Nación: En un clima tenso, Guillermo Francos presenta en el Senado su informe de gestion
3. The external deficit was US$5,191 billion in the first part of 2025
During the first quarter of 2025, Argentina’s balance of payments showed a significant deterioration in its current account, which showed a deficit of US$5191 billion. The external deficit was the result of a strong imbalance in the balance of services, with a negative balance of US$4502 billion, and a deficit in primary income of US$3333 billion. These figures contrast with the slight surplus of US$176 billion recorded in the same period of the previous year. Although trade in goods showed a surplus of US$2060 billion and the secondary income account added another US$584 billion, this was not enough to compensate for the loss of foreign exchange from tourism, transportation, and interest on debt.
La Nación: La Argentina entró en rojo en un número clave: el déficit externo superó los US$5.000 millones
4. Exponential growth of imports
Since Javier Milei took office, there has been a strong growth in imports in Argentina, driven by the elimination of different obstacles. This allowed the number of importers to double and the entry of products to increase exponentially. In the first months of 2025, the volume of imports reached 32% of GDP, the highest level in 135 years. The opening of trade was accompanied by a context of a relatively stable dollar and the availability of foreign reserves through international financing. Although this improved the supply and variety of products, it also generated an imbalance in the trade balance, with a surplus that began to shrink, and triggered alerts in local industrial sectors. The deregulation policy seeks to dynamize the economy and put an end to the restrictions of administered trade. However, the import boom also poses risks for domestic production, especially for small and medium-sized companies, which must compete with cheaper foreign goods and with greater entry facilities.
Comercio y Justicia: El boom de importaciones es récord histórico: en 135 años nunca se compró tanto
5. May Council activities were inauguratedo
The first working meeting of the May Council was held this week. Among the participants were Guillermo Francos, head of the Cabinet of Ministers; Federico Sturzenegger, presidential advisor and future minister in charge of the area of Deregulation and State Transformation; Alfredo Cornejo, governor of Mendoza; Carolina Losada, vice-president of the Senate; Cristian Ritondo, president of the PRO block of deputies; Gerardo Martínez, general secretary of UOCRA; and Martín Rappallini, president of UIA. The main objective of the meeting was to advance in the drafting of a package of agreed structural reforms to be submitted to Congress before the end of the year. The main topics discussed were labor, social security, tax, co-participation system and trade liberalization reforms. The Government seeks to sustain the political support to the economic course and to give signs of governability, institutionality and dialogue, especially in a context of tension with some sectors of the opposition and in the run-up to the legislative elections. The next meeting has been scheduled for July 20.