Milei’s relationship with the governors is strained due to the scope of his adjustment policies

The Argentine president Javier Milei has been facing a growing conflict with the governors for days over the cut in financing ordered by the national Executive to the provinces and on Monday the presidential spokesperson rejected the threat of the president of the province of Chubut to block the supply of oil to the rest of the country.

“Having that intention is not an attack on the national government, but on all Argentines,” Manuel Adorni told reporters about Governor Ignacio Torres’ warning. The province he governs, located in Patagonia, is one of the main producers of oil and gas.

Torres warned three days ago that if the Ministry of Economy did not provide him with financial resources for more than 13,000 million pesos (about US$ 15 million) that come from federal taxes – collected by the government at the national level – he would cut off the supply of oil, a threat that five other hydrocarbon-producing Patagonian provinces also signed.

Torres belongs to the conservative Pro party, several of whose leaders are aligned with the national government.

Adorni noted that the government of Milei, an ultra-liberal economist who since coming to power in December has applied severe adjustment policies, “does not allow more whims” to the provincial leaders, whom he demanded to apply an adjustment just as the national government does and accused of wanting “continue living off the rest of the Argentines due to problems in their public accounts.”

The ruling party warned that carrying out the threat would mean a “advance on private property and the expropriation of companies.”

Other districts in the country have also asked the Executive to urgently send funds.

The provinces consider that the withholding of resources is in retaliation for the collapse in Congress of a bill promoted by Milei with economic reforms that were not accompanied by legislators who respond to different local leaders.

They also consider that they were punished with Milei’s decision to eliminate other funds such as subsidies for public transportation and those intended to compensate teachers’ salaries.

Days ago, a federal judge ordered, at the request of Governor Torres, that the national government reverse the removal of subsidies, considering that it is “untimely” and unbalances the provincial accounts. The decision can be appealed.

In recent days, the president has attacked the governors and Torres in particular. “Nachito doesn’t see it, he’s a poor boy who couldn’t even read a contract, he’s very intellectually precarious.”Milei told the press.

In this regard, he referred to the agreement that the then provincial authorities and the national government signed in 2023.

“The province took on debt against the guarantee of co-participation (of taxes), so when the co-participation is deposited, the part affected by the debt is extracted and the remainder arrives. “It is not my fault that the boy (governor) cannot read a text and understand it,” Milei said.