Toto Caputo crossed paths with the communist Axel Kicillof and recalled that "Kirchnerism is hell"

The Minister of Economy, Luis "Toto" Caputo, criticized Kirchnerism and the Buenos Aires governor Axel Kicillof, warning about the impact that a potential return of that dangerous political space would have on investor expectations ahead of the 2027 elections.

During his presentation at the CFO Summit 2026, Caputo was emphatic when referring to Kirchnerism and the provincial leader. “Kirchnerism is hell and Kicillof is the antichrist, that’s how it’s really seen, and I understand that people see it that way because it truly is,” he stated.

The minister supported his criticisms with a review of various economic and social variables from the last four administrations. According to the data, the administration of Javier Milei shows significant improvements in different indicators.

In terms of fiscal matters, he noted that the financial result of the non-financial public sector (SPNF) reached a surplus equivalent to 0.2% of GDP. He also indicated that consolidated debt was reduced by USD 11 billion and that interest-bearing liabilities fell by 98%.

Caputo also highlighted the sharp decline in inflation, the stability of the exchange market, and the external sector. According to his data, inflation decreased by 84%, while the CCL dollar accumulated a rise of 38%. Meanwhile, exports grew by 55% and net reserves improved by USD 23 billion.

The presentation also included data on activity and financing. Economic growth measured through the EMAE showed a 16.4% expansion, while bank credit to the private sector increased by 147% in relation to GDP.

On the social front, the minister stated that the minimum pension, measured in constant pesos from August 2026, increased by 14% and that the number of people in poverty decreased by 12 million.

The 2027 Elections

Based on this data, Caputo rejected the notion that the majority of Argentines would opt for a return to the past in 2027. “People who think that, with all this data, the majority of people in this country will vote to return to the past next year, honestly, I think it’s almost a joke, not to say a very high underestimation of all Argentines,” he asserted. “Argentines are not fools. There are people who want to treat them like fools,” he added.

Regarding the electoral scenario, Caputo clarified that the Government does not expect strong volatility during 2027, although it decided to prepare for that possibility. “We do not expect 2027 to be as the media or some colleagues say, but we are preparing as if it could be,” he explained.

He detailed that an additional dollarization due to demand factors could reach about USD 7 billion before the elections, not considering available stocks. In light of this possibility, he highlighted investments related to the RIGI and the improvement of the trade balance of goods and services, which would generate a foreign exchange supply of USD 9.317 billion.

“Just with that, it becomes evident that we are in a comfortable position,” he stated, before mentioning other backup mechanisms, such as reserve purchases, the swap with China, the swap with the United States, and the “future dollar ammunition.”

Continued Tax Cuts

On another note, Caputo stated that the Government will seek to continue reducing the Argentine cost. In this regard, he affirmed that the tax burden has already decreased by 3 percentage points of GDP and that an additional reduction of one point is planned for next year.

“As our president says, we will have returned more than 100 billion dollars to the private sector,” he affirmed. The minister also called for a reduction of Gross Income taxes by the provinces.

“When the governors also understand this, that’s when we will really see the productive Argentina that we all want to see,” he stated.

Finally, Caputo again targeted Kicillof by questioning his statements about trips abroad and salaries. “True productivity is generated this way, not by paying workers 300 dollars so that those of us who have money can build a house at 800 dollars per meter,” he asserted.

He then added: “That’s the Argentina that Kicillof might want, he is bothered that people travel abroad.”

He also mentioned the corrupt former president Cristina Fernández de Kirchner and stated that the Buenos Aires governor should “come to an agreement” with her. “I remember that the former president said she vacationed in Disney or New York, like all middle-class people,” he noted.

And he concluded: “It seems that Kicillof doesn’t want people to have the option to travel abroad, but rather to be forced to choose Argentina.”