Argentina’s Milei turns to an ‘anti-Milei’ to save his project 

Libertarian economist Javier Milei rode to power on a bombastic pledge to wash away Argentina’s “corrupt” political class. Now, he has turned to a life-long member of that establishment to save his project.

Milei is approaching the six-month mark of his presidency without a single piece of legislation approved in congress. In an attempt to change that last week he fired his cabinet chief Nicolás Posse, an engineer with no political experience, and replaced him with Guillermo Francos, the interior minister.

Francos, a 74-year-old career politician, is widely seen as the polar opposite of the irascible president: calm, diplomatic, and with friends across the political spectrum. He has emerged as the top negotiator in Milei’s La Libertad Avanza (LLA), a crucial role given that the three-year-old coalition controls just 15 per cent of seats in congress, and none of the 23 powerful provincial governorships.

“The president chose me because he realises he is having trouble with Argentine politics — because he doesn’t understand it,” Francos said after his appointment.

While Milei has slashed the government deficit using his executive powers, analysts, businesses and the IMF have warned Argentina’s chronic economic crises cannot be solved without building a political consensus and securing long-term legislative change.

In an expanded role, dubbed in the media as a “super minister”, Francos will be the crucial link between the cabinet, congress and the governors. His first job will be to clear roadblocks in the senate that have stalled two economic reform bills, which aim to trim the deficit and incentivise investment.

“Right now, Milei is in a difficult moment,” said Eugenia Mitchelstein, an associate professor at Buenos Aires’ San Andrés university. “He needs a political godfather.”

Milei’s staffers privately acknowledge that the daily political grind is of little interest to the president, who has prioritised trips abroad to mix with tech leaders and speak at rightwing conferences.

His inner circle of advisers has scant experience in dealmaking with opposition leaders. Posse, a friend of Milei’s from the private sector, was a remote figure who avoided politicians and the media. Karina Milei, his sister and chief of staff, is focused on LLA’s inner workings. Santiago Caputo, Milei’s star strategist, is working to maintain the president’s popularity with voters ahead of 2025 midterm elections.

“They have realised they have a serious political deficit and they can’t get to the midterms without resolving it,” said Marcelo García, Americas director at geopolitical risk firm Horizon Engage. “They need a wheeler-dealer, someone who is comfortable in the scrum — that’s Francos.”

Born into a naval family in Buenos Aires in 1950, Francos attended a Catholic school where he was taught literature by Jorge Mario Bergoglio — now Pope Francis. He was active in student politics while studying law, and helped to launch a centre-right party after Argentina’s return to democracy in 1983. He eventually served on the capital’s city council and in congress.

But Francos has also worked closely with conservative and moderate figures from the vast Peronist movement, which has been pulled to the left under the influence of former president Cristina Fernández de Kirchner. Moderate Peronists hold critical swing votes in congress.

In 2007, he led the public bank of Buenos Aires province under Peronist governor Daniel Scioli. In 2019, Milei’s Peronist predecessor Alberto Fernández named Francos as Argentina’s representative at the Inter-American Development Bank in Washington.

Francos met Milei in 2012 when he was a director at Corporación América, the conglomerate where Milei worked for years as an economist. They stayed in close touch. According to Francos and former colleagues, he was one of the first people to recognise Milei’s political potential, despite their different styles.

In an interview with the Financial Times during last year’s campaign, Francos called himself “the other side of the Milei coin”. While Milei, an unmarried, wild-haired academic, is known for aggressive rants against adversaries, Francos, who has been married three times and has six children, has an easy charm and an even temper.

“Guillermo is an eternal optimist,” said a former colleague, who knows both men well. “If he and Javier have a disagreement with someone, Javier will probably come away furious or saying ‘conversation over.’ But Guillermo doesn’t fill with negative energy, he says ‘OK, we’ll try again’.”

As interior minister — a role that will now become a secretariat reporting to Francos — he managed the Milei government’s tense relationship with the provinces. Many governors, who hold sway over lawmakers, have opposed Milei’s agenda, while the president has slashed their funding.

A staffer for a centrist opposition governor said Francos was “trustworthy” and “a very good listener”.

“The problem is that he had a limited tool box to actually help with your problems,” they added. “In theory, that should change now.”

As cabinet chief, Francos is in charge of managing Milei’s ministers and could influence economy minister Luis Caputo — a cousin once removed of Milei’s strategist Santiago — to free up funds to ease political negotiations.

But analysts said the scale of Francos’s power will depend on the dynamic between him, Caputo and Milei. The president has signalled unwavering support for Caputo’s fiscal discipline, calling the former Wall Street trader a “rock star”.

The power balance will be further complicated by Milei’s promotion of Federico Sturzenegger, architect of the planned economic reforms, to a ministerial role.

In February, the government’s first attempt to legislate collapsed when the president abruptly withdrew his bill from the lower house floor, erasing months of negotiations led by Francos.

The stakes are higher now. As the government’s attempt to pass reforms has dragged on, a rally in Argentina’s sovereign bond prices has faltered. Investors warn a defeat would be grave for confidence in Milei’s programme.

On Wednesday, Francos and colleagues finally corralled enough support to call a vote on the bills for early June.

Mitchelstein said Milei is likely to empower his new cabinet chief to help him achieve his political goals — at least in the short term.

“As we get closer to the midterm elections next year, or if the economy improves, Francos could become less relevant,” she said.