Argentina’s Milei Fires Cabinet Chief As Reform Bill Stalls

(Bloomberg) — Argentine President Javier Milei fired his cabinet chief Nicolas Posse Monday as the government’s major economic reform bill has stalled in congress, marking the most high-level departure since Milei took office Dec. 10.

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Milei accepted Posse’s resignation and replaced him with Interior Minister Guillermo Francos, according to a statement on the government’s X account. Francos has coordinated negotiations between the president and congressional leaders over the reform bill. It’s one of the earliest departures of a top cabinet post in any recent Argentine presidency.

The cabinet shift comes after Milei warned last week that his entire cabinet would be put “under analysis” depending on whether Congress approves the bill. Posse resigned right before Milei departed Monday evening for a week of meetings in the San Francisco area with top executives from Apple Inc., Alphabet Inc. and Meta Platforms Inc., among others.

READ MORE: Milei Warns Cabinet’s Future Hinges On Argentina Congress Vote

Posse’s departure stands to unsettle markets as investors were already becoming nervous about Milei’s delayed reform bill that promises wide-ranging economic measures, which the libertarian initially hoped to have signed by May 25. The president recently conceded that the bill, and a symbolic pact with governors, may not happen until June or July.

Posse became a key figure during Milei’s campaign and later a top negotiator in the early months between the government and the International Monetary Fund over Argentina’s $44-billion program. With a corporate background and no formal government experience, Posse kept a low profile and chose not to speak to the press, breaking with tradition for cabinet chiefs.

Before joining Milei’s campaign, Posse climbed the executive ranks for several years at Aeropuertos Argentina 2000, a part of the Corporacion America holding company where Milei once worked for billionaire Eduardo Eurnekian. Posse was lauded by politicians and diplomats for adding structure to Milei’s campaign after the outsider stunned the nation by winning a primary vote last August.

(Updates with more context about cabinet change)

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