by The arrival of Javier Milei to the presidency he ran the limit of what was possible in Argentina. The unimaginable became reality In the heat of deep social disappointment with the last two governments of the traditional right, Mauricio Macriand the Peronist Alberto Fernandez. Still favored by the polls, capitalist anarcho dangerously pushes once again the horizon line in his confrontation with the head of the Government of Spain, Pedro Sánchez. Although a break in diplomatic relations is not even among the most far-fetched hypotheses, the far-right has managed to get the local media to set off alarm bells, warning about the enormous political and economic costs that Milei’s aspirations to become a country have for this country. world reference, as he defines himself, and present himself in Madrid as Santiago Abascal’s shock force. The retirement of the Spanish ambassador in Buenos Aires, María Jesús Alonso, is already part of a present that could not be outlined weeks ago.
“In the political world, The word of a leader is an act, It produces things, it has a special density. If we transfer it to the international world, this is enhanced,” recalled Carlos Pagni, columnist for The nation, about the interventions of the Argentine president that, far from diminishing, increase in tone as the hours go by. Upon landing in Buenos Aires, Milei described Sánchez as a “coward” that acts in alliance with Kirchnerism. Pagni, a leading analyst in Buenos Aires, estimates that the verbosity of Abascal’s friend has crossed a threshold when talking about Begoña Gómez. “These types of attacks on family members always leave a special mark. But We must remember the disqualifications of Jair Bolsonaro to the wife of Emmanuel Macron, who gave a permanent orientation to the bilateral relationship between Brazil and France throughout Bolsonaro’s mandate.” If the function of a head of state when traveling abroad is to “attract investments”, what he did Milei “probably what he did goes against that objective. Let’s not say that Spanish companies will stop investing in Argentina due to these types of conflicts, because investment is very determined by interest and business. But it certainly doesn’t help.”
Balance favorable to Argentina
In the case of the 2023 trade balance between the two countries, it shows that Argentina sells to Spain more than it buys: 1,411 million dollars against 1,261 million of the same currency. The main imports are pharmaceutical products, chemicals, fertilizers, auto parts and petroleum derivatives. Flour, soy, shrimp, oils, sunflower, peanuts, rice and legumes are some of the star products that cross the Atlantic. In 2021, the business newspaper reported The chronicler, this country was ranked as the second supplier of fish and fish products to Spain, despite its status as a fishing power. Local companies involved in this commercial transfer have begun to observe with certain unrest over the course of the diplomatic crisis. It is not only about what leaves Argentine ports and arrives in Spain but also about its status as a member of the EU. Europe is the second most important destination for Argentine exports.
Spain, main European investor
“Climbing” It is a word that has become commonly used in recent hours. The conflict has forced Spanish companies grouped in the Spanish Confederation of Business Organizations (CEOE) to repudiate Milei’s statements about Begoña Gómez. Many of the 136 that operate in Argentina are part of the CEOE, including Telefónica, Abertis, Iberia, Naturgy, Santander and BBVA. In statements to ‘Ámbito Financiero’, the researcher in International Trade Relations, Federico Vaccarezza, recalled that Spain is the most important European investor in Argentina, with 17,000 million dollars, and the second in this country, behind the United States. Although “commercial operations are not so linked to these political events,” Vaccarezza wonders about the impact that the bilateral conflict may have.
The sustainability of Milei’s shock program in the short term depends not only on the approval of the International Monetary Fund (IMF). Argentina hopes that the organization will support the anarcho-capitalist plan with money, something that the Buenos Aires media is inclined to completely rule out given the large debt that this country has with the IMF from the loan for 47,000 million dollars that Macri received in 2018. and that had to be refinanced on several occasions by his successors. Héctor Torres, a former Argentine representative to the IMF, recalled that “Spain is in one of the ‘chairs’ of the Fund’s board of directors and not just any chair, but one of the ones that has supported us the most.
The depth of the bond
Beyond the strictly political and commercial, Spanish-Argentine ties are of a depth that makes any deterioration unlikely. ORAbout 303,000 people born in this country resided in Spain in 2023 and much more is expected given the expulsive nature of the local economic crisis. But, at the same time, 477,465 people with Spanish nationality work or simply reside in Argentina. Both countries have a dual nationality agreement and another double taxation agreement that avoids paying taxes in both countries.
The dimension of such diversified and effective relations finds Argentine diplomacy overwhelmed by the interventions of Milei. The Minister of Foreign Affairs, Diana Mondino, reported the loss in the face of the crisis. She said she had a brief contact on Monday “on good terms” with ambassador María Jesús Alonso. She fell silent after finding out that she is not returning to Buenos Aires. After hours he managed to point out: “This is an anecdote that we have with Spain, It could be of any other type of nature. It is a case in which the personal relationship that may or may not exist cannot and should not affect the relationship between society and the community.” Mondino has attracted attention for estimating that the physiognomy of the Chinese makes them look “all the same.”
