Argentina’s Political Crisis Deepens as Milei and Villarruel Feud Escalates

President Javier Milei publicly branded Vice President Victoria Villarruel a “traitor” in a televised address last week, exposing a devastating rift in Argentina’s leadership that threatens economic recovery efforts. The allies-turned-adversaries, who took office together in December 2023, now clash over core policies as legal battles and public accusations paralyze governance.

The Breaking Point: From Allies to Adversaries

The fracture intensified when Milei vetoed pension and disability benefit expansions championed by Villarruel and approved by Congress. During a June 15 rally, he accused her of “betraying the libertarian revolution,” a statement formally confirmed by the Presidential Office and Senate records. Villarruel retaliated by filing judicial complaints alleging “systematic bullying” by Milei’s inner circle to oust her as Senate leader. Court documents reveal her accusations target senior presidential advisors for “institutional intimidation.”

Their divergence runs deeper than spending disputes. Villarruel’s vocal defense of military figures from Argentina’s dictatorship era clashes with Milei’s outreach to centrist voters. Senate attendance logs show she now operates independently, while Milei’s coalition excludes her from strategy meetings. Political scientist María Esperanza Casullo (Universidad Nacional de San Martín) notes, “This isn’t mere rivalry—it’s incompatible visions for Argentina’s future.”

Economic Fallout and Institutional Damage

The power struggle has tangible consequences. The Central Bank of Argentina reported a 9% peso devaluation against the U.S. dollar in May 2024, attributing it to “political uncertainty.” The Argentine Industrial Union (UIA), the nation’s largest business group, warned investment has stalled due to “eroding governance confidence.” With Villarruel controlling the Senate’s legislative agenda, Milei’s market reforms face gridlock.

Historical tensions compound the crisis. Villarruel’s advocacy for amnesty for 1970s military officials—documented in her 2020 book Ethics and Violence—fuels opposition from human rights organizations. Her isolation within government weakens Milei’s coalition amid soaring inflation, now at 289% annually per the National Statistics Institute (INDEC).

As Argentina’s political crisis fractures its leadership, economic stability hangs in the balance. Milei and Villarruel’s feud exposes a nation torn between austerity and social protection—with ordinary citizens paying the price. Urgent dialogue is needed before institutional collapse derails recovery.

Must Know

What sparked the Milei-Villarruel conflict?
The rupture began when Milei vetoed social security expansions Villarruel supported. It escalated after his “traitor” remarks and her lawsuits alleging bullying by his advisors. Policy differences on military legacy issues deepened the divide.

How does this affect Argentina’s economy?
Political instability has accelerated peso devaluation (Central Bank of Argentina, May 2024) and frozen private investment. The UIA confirms stalled projects due to uncertainty, threatening Milei’s inflation-control agenda.

Can Villarruel be removed as Vice President?
Only through impeachment or resignation. Her Senate role gives her legislative influence, complicating Milei’s reforms. Legal experts cite high removal barriers without criminal convictions.

What’s next for Argentina’s government?
Expect legislative paralysis and policy delays. International observers fear prolonged infighting could trigger capital flight or social unrest if basic services deteriorate.