President Milei, after his electoral victory in Argentina, faces challenges to reactivate the economy with high inflation and external debts, and must reduce the public deficit. His party LLA obtained great support but does not have a parliamentary majority, which requires him to maneuver with caution.
During the COVID-19 crisis, the U.S. Treasury used the Exchange Stabilization Fund (ESF) to backstop Federal Reserve lending programs. In October 2025, it was proposed to use it to help Argentina, with a $20 billion bailout, which generated controversy. The ESF has a balance of $43.4 billion.
The European Union and Mercosur are close to a historic free trade agreement, after more than twenty years of negotiations. The alliance would involve more than 700 million people and an annual exchange of almost 100 billion euros. Environmental and agricultural issues have been addressed. Following the acceleration of conversations by the Spanish presidency of the EU Council and the interest of Brazil and Argentina, the ratification of the agreement is expected in 2025, despite opposition.
