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Argentina's Milei swaps cabinet chief in major government shakeup

Published 05/27/2024, 09:35 PM
© Reuters. FILE PHOTO: Argentina's President Javier Milei takes the stage outside the Cabildo during the commemoration of the 214th anniversary of the May Revolution, in Cordoba, Argentina May 25, 2024. REUTERS/Leandro Bustamante Gomez/File Photo

BUENOS AIRES (Reuters) - In the first cabinet shakeup of his five-month-old administration, Argentine President Javier Milei accepted the resignation of cabinet chief Nicolas Posse on Monday night amid strains over major economic reforms pitched by the government.

Posse will be replaced by current Interior Minister Guillermo Francos, according to a government statement.

The cabinet shuffle comes at an especially delicate moment for Milei, a far-right libertarian economist, as his signature reform bill is facing fresh obstacles in Congress and a market rally for government bonds and the local currency appears to be stalling.

The next government role for the outgoing cabinet chief will be announced in the coming days, the statement added.

© Reuters. FILE PHOTO: Argentina's President Javier Milei takes the stage outside the Cabildo during the commemoration of the 214th anniversary of the May Revolution, in Cordoba, Argentina May 25, 2024. REUTERS/Leandro Bustamante Gomez/File Photo

Posse was a key part of the team involved in debt talks with the International Monetary Fund (IMF), along with Economy Minister Luis Caputo.

The economic reforms pushed by Milei include plans to privatize state companies, along with other austerity measures aimed at reversing a prolonged economic crisis marked by inflation running at close to 300%.

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