Argentina's President Milei to Sign Crucial Pact Amid Economic Crisis

Argentina's libertarian President Javier Milei plans to sign a crucial pact with provincial governors to gain wider support for his reforms. The agreement aims to address the country's economic crisis, marked by high inflation and rising poverty. The deal will focus on fiscal balance, reducing public spending, and opening to international trade.

Argentina's libertarian President Javier Milei is preparing to sign a critical pact with provincial governors, aiming to strengthen support for his reform agenda amid the nation's severe economic crisis. Marked by nearly 300% inflation and increased poverty levels, the agreement is crucial for Milei's administration, which has only minority representation in Congress.

After an initial market rally post-inauguration, Milei's administration saw bonds and the peso weaken due to the recession and political tensions. His La Libertad Avanza party, lacking a parliamentary majority and control over provincial governors, is in dire need of alliances to push through its agenda.

Milei has aligned closely with the main conservative bloc; however, five center-left Peronist governors are expected to miss the meeting. The pact, termed the 'May Pact' and initially set for May 25, includes vital fiscal reforms, public spending cuts, and a commitment to international trade. It will be signed in Tucuman, where Argentina declared independence in 1816.

(With inputs from agencies.)