The head of the Nariño's House has once again drastically reshuffled his cabinet, a move that reflects Petro's chronic inability to assemble a government team aligned with his interests and conceptions. It also shows, however, that he is unwilling to remain stagnant in his pursuit of creating a favorable social and political environment for the left thinking in the next general elections. According to the president, a former guerrilla, some of his ministers sometimes act as a sort of "internal opposition" within government ranks, though much of this has to do with the nature of political coalitions. These alliances are essential to securing the necessary support to form a government in contemporary politics, but they also impose limitations that weaken a government’s ability to advance its policies, particularly those that resonate with its core base.
“The people voted for certain objectives, and that must be respected. The government cannot allow the people to be mocked,” Petro said, adding that he cannot work “with [officials] who don't know what the plan is.” I believe it is certainly complicated to work with people who have their own plan. An important milestone for the government right now is the presentation of a comprehensive fiscal reform based on tax increases to fund the 2026 budget, estimated at around $6.5 billion. This year’s fiscal deficit will represent about 7% of GDP, while next year’s is projected to be around 6%.
Mexico
The Mexico City government is proposing measures in response to a protest that turned violent earlier this month, led by activists and organizations denouncing rising rents and the displacement of local residents from neighborhoods like Condesa and Roma. They blame these issues on Airbnb-fueled mass tourism and the influx of (American) digital nomads. So, while condemning the xenophobic outbursts seen during the protest, Mayor Clara Brugada unveiled a plan today to limit rent increases in line with inflation rates and stabilize rental prices in certain districts, among other measures.
She stated these policies would be implemented after extensive public consultation. Organizations like the Anti-Gentrification Front CDMX argue that the problem goes beyond migration, encompassing broader dynamics such as inequality and the preferential treatment given by authorities and businesses to those with greater purchasing power, so including national wealthy pockets in the discussion. A new protest has been called for next Sunday.
Argentina
There are some good news on the macroeconomic and economic diplomacy fronts—though, as always, the real test will be how these developments play out in the lives of Argentines, especially the most vulnerable. The government of Javier Milei announced on Wednesday that the downsized National Public Sector recorded a primary surplus of $655 million in the most recent monthly fiscal report, along with a financial surplus of roughly $457 million. These figures are surely tied to its strict "zero deficit" fiscal policy.
In another positive development, it was revealed today that Donald Trump’s Justice Department will support Argentina’s Pink House in a legal battle involving state-owned oil company YPF in New York courts. Also, in what appears to be another sign of strong bilateral relations (and respect for the separation of powers), the U.S. Second Circuit Court of Appeals dismissed a lawsuit against Argentina over the calculation of interest on sovereign debt bonds worth $450 million.
