Exploring Milei’s Success through the Lens of Investment Banking

Javier Milei, the newly-elected President of Argentina, faces significant challenges in implementing reforms that could address the country’s economic imbalances. While Milei proposed strong measures during his campaign, these measures could cause an abrupt and deep economic adjustment, collapsing domestic demand and threatening financial stability.

Moody’s Investors Service focused on the consensus necessary to carry out the proposed reforms and on governance risks given the lack of party structure and distribution of power in Congress after the elections. Jaime Reusche, Vice President – Senior Credit Officer de Moody’s Investors Service stated that “A Congress divided and social pressures will also influence the incoming president’s ability to implement corrective policies.”

JP Morgan placed its magnifying glass on the risks of implementing the measures announced by Javier Milei during his campaign. According to a report signed by economists Diego Pereira, Lucila Barbeito and Gorka Lalaguna, “The main challenge is that it may be hampered by political maneuvering.” In order to mitigate attempts at bolder reforms such as dollarization, JP Morgan warned that “President-elect Milei will need to negotiate with other parties.”

Barclays focused on governance and warned that for Milei the biggest challenges will come from the social front. It concluded that “The faster the new administration is able to achieve stabilization – and a strong economic recovery –

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