Last week Cuba experienced its worst power blackout in decades. Meanwhile, Ecuador is enduring its worst drought in six decades, forcing the government to impose power cuts of up to 12 hours daily. Just in case, two months before summer officially begins, Argentina’s President Javier Milei has replaced his energy secretary.
The Milei administration received an early warning three months ago from CAMMESA, the wholesale electricity market administrator, that summer temperature spikes could lead to power outages. The looming energy crisis worsened the already strained relationship between Economy Minister Luis Caputo and Energy Secretary Eduardo Rodríguez Chirillo, who has now been dismissed.
The follow-up story is that Rodríguez Chirillo’s replacement was recommended by former president Mauricio Macri, who is seeking compensation in the form of government positions for his consistent support of Milei’s lawmakers in Congress, particularly in backing the President’s vetoes of increases for pensions and state university budgets.
However, Macri’s ambitions of becoming a full partner – rather than an external supporter of the Milei regime – remain unfulfilled. He is aware that if La Libertad Avanza solidifies its position in Congress after the midterm elections next year, both he and his centre-right PRO party would be doomed.
Incoming Energy Secretary María del Carmen Tettamanti, who was previously part of PRO’s campaign teams, has a technical rather than political profile. She is expected to be more responsive to her superiors, Luis Caputo and Energy & Mining Coordinator Daniel González, than Rodríguez Chirillo was. But Macri should not assume that his voice will carry more weight in energy matters — let alone in other areas he seeks influence, like public works and transport.
More than ever in his first 11 months in office, Milei's inner circle and broader Cabinet feel empowered to push forward their agenda of confrontation and reform. They do not feel obliged to share power with anyone. Macri has repeatedly been suckered into believing President Milei is listening to him, and the energy staffing move momentarily gave him some satisfaction. But he would be a fool to believe the the Milei siblings will open up much more to him.
But is it the Mileis? Or is it the Caputos? One side of the ruling triangle (Milei, his sister Karina, and top presidential advisor Santiago Caputo) is growing more prominent. Not so long ago, as previously noted, two Caputos in the inner circle seemed one too many. But now, Santiago and Luis Caputo, who share familial ties, are working closely in tandem.
In a recent division of labour at the Casa Rosada, both Karina Milei and Santiago Caputo have taken on enhanced roles. While President Milei continues to lead the macroeconomic programme and government communications, Karina is dividing her time between preparing the La Libertad Avanza party for next year’s congressional elections and becoming more involved in bilateral relations and foreign policy, often at the expense of Foreign Minister Diana Mondino. Last week, Karina spent three days in Paris, where a wobbly agenda included meetings with First Lady Brigitte Macron and a few businessmen.
Meanwhile, Santiago Caputo has seen the remit of his job description grow significantly in recent weeks. Even though Congress blocked his attempt to increase the budget of the SIDE intelligence agency he controls — marking the unprecedented instance of Congress rejecting a presidential emergency decree, or DNU — he continues to expand his tentacles and placing loyalists in key positions, including recently the head of the state energy company ENARSA.
The advisor’s influence extends across many areas of the administration – from state energy firm YPF and the UIF anti-money laundering agency to government-owned state media and the management of public companies, among others. This week, the Caputos orchestrated the restructuring of the AFIP tax bureau, which will be downgraded and placed under the wing of the Economy Ministry — an odd move given the government is urging Argentines to take advantage of the tax amnesty and declare hidden wealth.
These developments indicate that the Caputo duo are extraordinarily powerful. Luis Caputo is now arguably the most influential economy minister since democracy returned in 1983, rivalling Domingo Cavallo, the architect of the peso-dollar Convertibility Plan under then-president Carlos Menem in the 1990s. But unlike Cavallo, Caputo has another family member expanding his influence throughout the administration.
