We confront problems of biblical proportions. Reducing the state’s footprint in the economy is our most important and most difficult mission. In the midst of a frigid night, under security measures that recalled darker times, President Javier Milei secured yet another political victory. The libertarian economist managed, after months of discreet maneuvering, to win photo opportunities with governors from 18 of Argentina’s 24 provinces. These images formed a foundational moment, a display dubbed the “May Pact” even though it was signed in July. The agreement, with its modest scenes of consensus, serves mostly to refresh the framework of the Bases Law approved by Congress weeks earlier, and it grants Milei extraordinary powers to dismantle the state and push structural changes in the economy and society, spanning labor regulations, punitive measures, and environmental policy. [Citation: Analysis by regional observers]
For the far right, which rose to power in a surprising turn of events amid a historic crisis in political representation that weakened the major parties, especially the Peronist bloc, the May Pact, signed in the northern province of Tucumán, launches the second phase of an administration that Milei has described as aiming to profoundly reconfigure the country, one that reports 55.5% of people living in poverty and a deepening recession. [Citation: Political commentary]
“A lean photo,” remarked the financial daily Ambito Financiero about the scene occurring roughly 1,250 kilometers from Buenos Aires, during the Independence Day period. The invitation to consensus was narrow. Only former presidents Mauricio Macri and Adolfo Rodríguez Saá attended the ceremony. Rodríguez Saá served a brief seven days in 2001 amid social and economic upheaval. The Buenos Aires governor, Axel Kicillof, who presides over the province home to about 40% of the electoral roll, did not attend. “The only pact we accept defends federalism, industry, work, and national resources, guarantees the rights and well‑being of the people of the province of Buenos Aires. That is our fight for independence: to work toward a just, free, and sovereign nation where everyone can build a future.”
Officials did not include members of the Supreme Court or Vice President Victoria Villarruel, who is frequently discussed in relation to the president. It was predictable that Cristina Fernández de Kirchner and Alberto Fernández would stay away from Tucumán’s modest celebrations. Fernández de Kirchner even sent a letter explaining his reasons for not joining. The former president argued that Milei’s approach aims to “undermine” the Constitution because it runs counter to the social and political consensus that underpinned the state. In his view, challenging the state is a challenge to constitutional mandates that support the system itself. [Citation: Commentary on constitutional implications]
Eschewing further ceremonial travel, Milei’s aides kept the focus on the pact’s text rather than public fanfare. The ceremony’s apparatus, described by state outlets, took place “under the gaze of the Eternal God.” Those who tried to protest around the Tucumán House of Government were met with force. Milei’s public communication channels—his screens and devices—distill his key messages. “I promise we will live in a country without inflation for the rest of our lives,” he proclaimed. Yet his first half-year in office has seen inflation accelerate and the peso-related costs soar in the informal market as samples of the broader economic strain. [Citation: Economic context]
The libertarian advocate did acknowledge the country’s shared hardships, inviting Argentines to trust his proposed remedies. “The turning points in a nation’s history are not moments of peace, but moments of difficulty and conflict, where everything seems uphill. In those moments, the abyss becomes clear and change becomes an obligation and an urgency.”
The pact’s message emphasized discipline, even as Milei’s stance often clashes with regional peers and international observers. The administration’s coup of sorts appears aimed at rebalancing provincial powers with the capital’s influence. Milei reminded provincial leaders that they cannot escape the austere adjustments he proposes. He noted that 44% of state spending is at the provincial and municipal level. For each national employee, there are five provincial workers. Achieving a lean government with spending at around 25% of GDP will require all levels of government to contribute. [Citation: Fiscal policy analysis]
Milei asserted he carried no grudges. Those who chose not to travel to Tucumán did so for ideological reasons or to defend their privileges. Yet ideology fuels much of his policy agenda and rhetoric. At the close of his address, he directed critics of environmental measures and climate accords to support exploiting natural resources—arguing against the protests of environmentalists who resist deforestation and extractivism. He indicated that his administration would continue celebrations the following day in the capital, with a military parade intended to restore the pomp of the era when the armed forces held sway. [Citation: Political reportage]
In essence, Milei’s governance style has been described as disruptive but focused on consolidating control over what he calls the “casta.” The congressional passage of the Bases Law mirrors the balance of power he seeks with provinces that should belong to the opposition arc. Those districts remain tethered to the federal purse to meet payrolls and operate the machinery of government. He reminded them that they will face the broad fiscal reforms he advocates. “The only pact accepted by the province of Buenos Aires is one that defends federalism, industry, labor, and national resources, ensuring the rights and welfare of Buenos Aires residents. That is the fight for independence: working toward a nation that can sustain itself financially and socially,” one observer noted from the public Twitter feed. This sentiment echoed across the broader political landscape as Milei pressed ahead with his agenda. [Citation: Social media commentary]
Observers note that, beyond eccentric statements, Milei has managed to bring a level of discipline to much of what is typically seen as a political caste. The policy moves not only reshape the workings of Congress but also redefine the relationship between Buenos Aires and the provinces. The question remains whether the promised changes will translate into sustained stability amid a challenging economic climate, or whether resistance from regional actors will eventually constrain the administration’s bravado. [Citation: Longitudinal political analysis]
In the end, the May Pact reinforces a broader effort to reframe Argentina’s governance: a central, reform-minded approach paired with a demand for provincial compliance and a recalibration of the social contract that binds the country together. It is a pivotal moment in the Milei era, and its consequences will play out in the daily lives of Argentines while also shaping the way neighbors view a nation poised to pivot decisively in a new direction.