Milei & Energy
First 100 Days Priorities and Honeymoon Checklist
Javier Milei won a resounding victory in Argentina’s election on November 19. Having only served one term in Congress and with little formal political background or party apparatus, his 12-point defeat of Sergio Massa the Peronist candidate grabbed international headlines. That a political outsider who campaigned with a chainsaw and a draconian message won such a resounding victory underscored society’s desire for change. Arguably, radical change as the other “change” candidate, Patricia Bullrich did not qualify for the November run-off. But with high hopes come large expectations. Especially when you fully embrace being called an anarcho-capitalist.
This brief focuses on how the Milei administration can begin to deliver on those expectations as it pertains to the nation’s energy sector. With the additional caveat that these are also points to be considered and pursued in the first 100 days. Call them the honeymoon checklist.
In our view, to shape and inform the early stages of policy formulation and implementation it is useful to consider four encompassing areas: reducing country risk and recovering investor confidence; setting forth a clear plan and strategy for managing public utility subsidies; develop and execute a plan for liberalizing the natural gas and fuels market; launching a formal strategic bilateral engagement framework with the United States.