Argentina's government split over pace of deals with provincial governors

Diego Santilli and Economy Minister Luis Caputo are pushing to reach agreements with governors by the end of October. Allies of Karina Milei want any pact to preserve the ruling party's local political structure.

LA NACION reported that Santilli resumed talks on Thursday after the Paris meeting with provincial leaders. He received Tucumán Governor Osvaldo Jaldo at the Casa Rosada and plans to meet Corrientes Governor Juan Pablo Valdés on Friday. Three events in Buenos Aires next week are expected to bring governors to the capital.

Caputo and Santilli want a broad agreement by the end of October. The economy minister sees it as a way to strengthen political backing for the government and help steady economic indicators. The administration also wants support for changes to the PASO primary system ahead of the 2027 elections. Some governors, however, say they will not back abolishing the primaries without assurances that La Libertad Avanza will not run candidates against them locally.

The split also runs through the ruling coalition. Martín Menem and Eduardo “Lule” Menem are open to alliances, but people quoted by the newspaper said they want to protect LLA's provincial organization. Some officials expect the party to field its own candidates in most provinces. The scale of those campaigns has not been settled.

Government negotiators are considering deals with several provinces, but LA NACION said there was no final list. Governors also say they do not yet know how an agreement would work in each district. Some LLA figures would prefer to negotiate changes to PASO separately from an electoral alliance for next year. Governors want the issues bundled together.

Negotiations are also expected to cover places on national congressional lists. The ruling party wants a large share, while governors want to keep senators and deputies who give them influence over federal decisions, especially funding. Sources told LA NACION that the talks could continue through December or longer. Supporters of a later deal believe the government's bargaining position could improve closer to the election if the economy strengthens.