Javier Milei and his measures, live: the increase in bank defaults and the first alliances for 2027

Argentina's President Javier Milei continues to implement sweeping economic reforms, with recent developments highlighting both challenges and strategic moves ahead of the 2027 elections. The government has taken steps to restructure key institutions, including the Registro Nacional de Armas (Renar), which will now operate as a decentralized entity under the Ministry of Security. This move comes amid ongoing debates over the administration’s approach to economic stabilization and its impact on sectors such as agriculture and energy. Meanwhile, Milei’s political alliances are beginning to take shape, with figures like Hernán Lacunza, a former president of the Buenos Aires Province and current leader of the PRO party, actively positioning himself for a presidential bid in the upcoming cycle. The government issued Decree 770/2026, published in the official gazette this week, outlining the new structure and responsibilities of Renar. The decree specifies that the organization will function independently within the Ministry of Security, tasked with overseeing the legal arms market. This shift reflects broader efforts to deregulate and modernize regulatory frameworks, though critics argue it could lead to increased risks in gun control. The change has been part of a series of administrative adjustments aimed at streamlining operations and reducing bureaucratic hurdles. In another development, the police in Bolivia arrested a suspect linked to the attack against Nadia Beller, the former partner of Fernando Cerimedo, a political consultant who once advised Milei. The incident, which occurred in Santa Cruz de la Sierra, has raised questions about security concerns surrounding high-profile individuals connected to the Argentine government. While no direct link has been established between Cerimedo and the attack, his role as a former advisor to Milei has drawn attention to potential vulnerabilities in the administration’s inner circle. Meanwhile, Hernán Lacunza traveled to New York to present his presidential platform to investors, signaling his intent to secure funding for his campaign in the 2027 election cycle. Despite renewed dialogue between Lacunza and former President Mauricio Macri, the latter has not ruled out running for office, creating a competitive landscape within the right-wing bloc. Lacunza emphasized his commitment to pursuing the presidency through PRO, reinforcing his position as a serious contender. On the international front, U.S. President Donald Trump announced plans to import up to 300,000 tons of beef duty-free over the next 90 days, a decision that has sparked interest among major exporters like Argentina. The move follows a period of reduced cattle stocks in the United States due to adverse weather conditions and a decline in breeding herds. Trump cited the need to lower meat prices for American families, a statement that has prompted speculation about how Argentina might benefit from increased demand for its beef exports. Economic analysts have noted that while Milei’s policies aim to stabilize the currency and reduce inflation, they have also led to rising bank defaults. According to recent reports, the increase in non-performing loans suggests that some businesses and consumers are struggling to meet their financial obligations under the new economic framework. This trend has fueled discussions about the long-term sustainability of the administration’s approach, particularly as it relates to credit availability and access to financing for small enterprises. Carlos Melconian, an economist and former minister under previous administrations, criticized Milei’s handling of the economy, arguing that the focus should be on developing a comprehensive strategy rather than merely addressing immediate fiscal concerns. He pointed out that the current administration’s emphasis on tax cuts and spending restraint has not yet translated into sustained growth, and warned that without structural reforms, Argentina could face prolonged economic instability. As these developments unfold, the political landscape in Argentina remains dynamic, with multiple players vying for influence and resources. The coming months will likely see further shifts in policy, alliances, and external pressures as the nation navigates its path toward the 2027 elections.