Why Argentinian President Javier Milei courted controversy on his Europe tour

The Argentine president’s focus on international travels — he met world leaders at the G7 just over a week ago — is raising questions about his domestic goals, an analyst noted in La Nación, adding that Milei’s high-profile trips have yet to translate into concrete benefits for Argentines. Lawmakers have previously cast doubts about Milei’s use of public funds for trips that appeared more personal than official, since some didn’t involve meetings with government officials — with critics accusing the president of adopting the privileges of the “political caste” that he had previously opposed, El País reported.

In Germany, Milei and Scholz discussed the importance of “critical minerals,” likely a reference to Argentina’s vast stores of lithium, a metal that is key to the green transition. Argentina’s lithium industry is receiving increased attention from investors, particularly from China, the third largest investor in the mineral in the country after Canada and Australia, the Wilson Center noted. US firms have also ramped up their interest, but Chinese firms may have as much as a 10-year advantage on American ones, an expert told El País.

Milei was briefly praised by the IMF and investors after his sweeping package of laws was approved by Congress in mid-June. But there is growing uncertainty over his controversial proposal to ultimately eliminate the central bank, The Economist noted. Investors are also concerned that the overvalued peso is making Argentina more expensive in dollar terms, deterring tourism and investment, and the government’s controlled exchange rate complicates recovery efforts. Despite Milei’s assurances that inflation will stabilize, costs continue to rise, and there’s a risk of a sharp currency correction.