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The Caputos extend their tentacles over the Mileis
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The Caputos extend their tentacles over the Mileis

Last week, Cuba experienced the worst power outage in decades. Meanwhile, Ecuador is suffering its worst drought in six decades, forcing the government to impose power cuts of up to 12 hours a day. Just in case, two months before the official start of summer, Argentine President Javier Milei replaced his energy secretary.

The Milei administration received an early warning three months ago from CAMMESA, the wholesale electricity market administrator, that summer temperature spikes could lead to power outages. The looming energy crisis has worsened already tense relations between Economy Minister Luis Caputo and now-removed Energy Secretary Eduardo Rodríguez Chirillo.

The story that follows is that Rodríguez Chirillo’s replacement was recommended by former President Mauricio Macri, who is seeking compensation in the form of government positions for his consistent support of Milei’s lawmakers in Congress, particularly in supporting vetoes of the president on increasing pensions and the state. university budgets.

However, Macri’s ambitions to become a full partner – rather than an external supporter of the Milei regime – remain unfulfilled. He is aware that if La Libertad Avanza consolidates its position in Congress after next year’s midterm elections, he and his center-right PRO party will be doomed.

The new Secretary of Energy, María del Carmen Tettamanti, who was previously part of PRO’s campaign teams, has a more technical than political profile. She is expected to be more receptive to her superiors, Luis Caputo and Daniel González, coordinator of energy and mines, than Rodríguez Chirillo was. But Macri should not assume that his voice will carry more weight on energy issues – much less in other areas in which he seeks influence, such as public works and transportation.

More than ever during his first 11 months in office, Milei’s entourage and the entire Cabinet feel empowered to advance their agenda of confrontation and reform. They do not feel obligated to share power with anyone. Macri was repeatedly led to believe that President Milei was listening to him, and the change in energetic personnel gave him some momentary satisfaction. But it would be foolish to believe that the Milei siblings will open up much more to him.

But is it the Mileis? Or is it the Caputos? One side of the ruling triangle (Milei, his sister Karina, and top presidential advisor Santiago Caputo) is becoming increasingly important. Not so long ago, as previously statedtwo Caputos in the inner circle seemed one too many. But now Santiago and Luis Caputo, who share family ties, work closely together.

As part of a recent division of labor at Casa Rosada, Karina Milei and Santiago Caputo have taken on increased roles. While President Milei continues to lead the macroeconomic program and government communications, Karina divides her time between preparing the La Libertad Avanza party for next year’s legislative elections and her increased involvement in bilateral relations and foreign policy, often at the expense of Foreign Minister Diana Mondino. . Last week, Karina spent three days in Paris, with a shaky schedule including meetings with First Lady Brigitte Macron and a few businessmen.

Meanwhile, Santiago Caputo has seen the scope of his job description expand significantly in recent weeks. Even though Congress blocked his attempt to increase the budget of the SIDE intelligence agency he controls – an unprecedented case of Congress rejecting a presidential emergency executive order, or EOD – he continues to expand its tentacles and place loyalists in key positions, including recently that of leader. of the national energy company ENARSA.

The advisor’s influence extends to many areas of administration – from state energy company YPF and anti-money laundering agency UIF to government-owned state media and management public companies, among others. This week, the Caputos orchestrated the restructuring of the AFIP tax office, which will be downgraded and placed under the wing of the Ministry of Economy – a strange move given that the government is urging Argentines to take advantage of the tax amnesty and to declare their hidden wealth.

These developments indicate that the Caputo duo is extraordinarily powerful. Luis Caputo is today arguably the most influential Economy Minister since the return of democracy in 1983, rivaling Domingo Cavallo, the architect of the peso-dollar convertibility plan under then-President Carlos Menem in the 1990s. But unlike Cavallo, Caputo has another family member extending his influence within the administration.