Argentina Roundup: Government shake-up amid scandal, risk index rises, Peronist victory spells doom for Milei

Argentina’s country risk index surges to 1,200 points

Argentina’s country risk index climbed to 1,200 points, its highest level since October 2024. This metric, closely monitored by investors, reflects the perceived likelihood of Argentina defaulting on its debt. The surge highlights concerns about the country’s fiscal health, dwindling foreign reserves, and the impact of political turbulence on economic reforms. Analysts warn this could deter foreign investment, raise borrowing costs, and strain President Javier Milei’s already ambitious stabilisation plans.

Milei faces setback after Peronist victory in Buenos Aires

President Javier Milei’s reformist government is facing headwinds after the Peronist party scored a significant victory in Buenos Aires. The first post-election poll suggests growing voter dissatisfaction with Milei’s policies, especially among working-class voters who have borne the brunt of austerity measures. As the country heads toward key October elections, Milei is expected to recalibrate his messaging and shore up support to avoid further losses that could stall his legislative agenda.

Budget speech: “The worst is over”

In a nationally televised address, Milei sought to reassure Argentines that the country is turning a corner economically. He promised that “the worst is over” and appealed to citizens to hold firm as his administration works to stabilise inflation, attract investment, and fund social programs. Milei also signalled increased spending on healthcare and education, hoping to counter criticisms that his government’s austerity approach has disproportionately hurt the poor.

Government shake-up amid ANDIS scandal

The Argentine government announced structural changes within ANDIS (National Agency for Disability) following leaked audio recordings involving Diego Spagnuolo that sparked public outrage. The scandal triggered protests in Buenos Aires and other cities, with citizens demanding accountability and transparency. The administration’s swift response suggests an effort to limit political fallout and restore public trust ahead of the upcoming electoral cycle.

Marco Rubio meets Netanyahu to discuss Qatar attack and Gaza crisis

U.S. Senator Marco Rubio held discussions with Israeli Prime Minister Benjamin Netanyahu, focusing on the aftermath of the recent attack in Qatar and the ongoing humanitarian and security situation in Gaza. This conversation underscores Washington’s growing concern over Middle Eastern instability and its ripple effects on global security. Argentina, while geographically distant, is watching closely — particularly given its large Jewish community and its own security policies in relation to Middle Eastern geopolitics.