Argentina Roundup: Milei’s Christmas message, budget battle, first solar highway

Milei highlights reforms and warns of more changes ahead

Argentine President Javier Milei released a Christmas message on Wednesday, December 24, reviewing his administration’s first year in office, highlighting the elimination of the fiscal deficit, a drop in inflation, the lifting of currency controls and recent electoral gains by La Libertad Avanza (LLA). In a video shared on Instagram, Milei said the consolidated deficit had been reduced from 15% of GDP to zero and claimed that inflation had been brought under control, lifting 12 million people out of poverty. He also praised Security Minister Patricia Bullrich for ending roadblocks, tightening crime policy and creating a Federal Directorate of Investigations. Milei celebrated the adoption of the Single Paper Ballot and LLA’s performance in the legislative elections, which made the party the largest minority in the Chamber of Deputies and secured 20 Senate seats. He closed the message by urging Argentines to “fasten your seatbelts,” signalling further reforms as Congress prepares to debate the 2026 Budget.

Government pushes for Senate approval of 2026 Budget

President Javier Milei’s La Libertad Avanza gained backing from four senators in the Convicción Federal caucus, boosting government confidence that the 2026 Budget bill will pass its first reading in the Senate. If approved, it would be the first budget sanctioned under Milei since he took office in December 2023. The main uncertainty centres on Article 30, which proposes repealing laws that earmark funding for education, science and technical schools. While the government expects broad support for the overall bill, several Peronist senators backing the budget have said they will not vote for that article. The Casa Rosada is seeking to secure more than 40 votes and avoid reopening debate after setbacks in the Chamber of Deputies, where lawmakers failed to repeal university funding and disability emergency laws.

Economy minister signals shift away from Wall Street debt

Economy Minister Luis Caputo said the government will try to avoid issuing new debt under New York law in January, as part of a strategy to reduce Argentina’s reliance on U.S. financial markets. Writing on X, Caputo said the aim is to make Wall Street only a marginal source of financing. His comments followed a recent US$1 billion bond auction that drew higher yields and weaker demand than expected. Caputo said Argentina’s market debt is equivalent to about 25% of GDP, with Wall Street exposure accounting for less than five points. He added that proposed labour reforms include a severance assistance fund that could help develop a domestic capital market of around US$4 billion per year.

San Juan launches Argentina’s first solar highway

The province of San Juan inaugurated Argentina’s first solar highway on the Avenida Circunvalación, integrating photovoltaic generation into road infrastructure. The project includes 36 solar systems mounted on metal monopoles that feed electricity into the grid during the day and power road lighting at night. Developed entirely with local labour and expertise, the initiative aims to optimise existing infrastructure without using additional land. Provincial authorities say the project reduces emissions, cuts long-term energy costs and positions San Juan as a national leader in renewable energy and sustainable urban development.

Report shows sharp rise in security incidents

A national report by private security firm Verisure recorded a 20% year-on-year increase in security incidents across Argentina, highlighting a fragmented and regionalised crime pattern. Tucumán topped the ranking with a 65% rise, followed by Córdoba at 50% and Mendoza at 40%. The Atlantic coast saw a 30% increase, while Buenos Aires Province registered a 15% rise overall, masking a sharp increase in violent robberies in the Greater Buenos Aires area over the past decade. Despite the rise in robberies and violent incidents, Argentina’s homicide rate stood at 3.8 per 100,000 inhabitants, the lowest in two decades. According to the report, 74% of Argentines now cite insecurity as their main concern, pointing to public safety as a key social and political challenge.