Argentine President Javier Milei began his four-day visit to France on Wednesday, opening Argentina Week, an event aimed at promoting investment opportunities in his country. The visit, which runs until October 2, includes a speech at the Organisation for Economic Cooperation and Development (OECD) in Paris and a meeting with French President Emmanuel Macron. Milei's "new Argentina" policy aims to attract foreign capital, offering tax benefits for projects involving investments of over €200 million.
Milei's visit comes as Argentina seeks to show its openness to the mining and oil industries, having modified glacier protection laws to facilitate the exploitation of copper, gold, and lithium reserves. The Argentine delegation includes Economy Minister Luis Caputo, Deregulation Minister Federico Struznegger, and a dozen governors, including those from mining provinces. The head of Argentina's national oil company YPF and the president of the powerful employers' association of the agro-industry also accompany Milei.
France is the seventh-largest investor in Argentina, with a 63% rise in projects in 2024. Milei aims to accelerate this trend, meeting with French business leaders, including Total CEO Patrick Pouyanné, and the CEOs of mining group Eramet and agri-food company Danone. This quest for investors occurs against a backdrop of economic slowdown in Argentina, which saw a 0.6% drop in GDP in the second quarter of the year.
Since taking office in 2023, Milei has overseen a budget surplus and tamed triple-digit inflation, bringing it down to an annual rate of 35%. However, three years of austerity have impacted the industrial sector, employment, and consumption. The manufacturing and retail sectors have lost jobs due to falling purchasing power and increased imports, with 30,000 companies closing since Milei took office.
Unemployment in Argentina rose to 7.9% in the second quarter of this year, the highest level since 2021. Despite this, Milei appears confident about his re-election, although his popularity has dropped to its lowest level since the beginning of his presidency, with a disapproval rating of around 55-60%. Political scientist Federico Zapata said Milei needs to show that the world is open to the "new Argentina" he embodies.
Milei is set to receive an award from the Paris Economic Forum on Friday for the coherence and breadth of his economic program. However, several French unions have condemned his visit, citing his repeated attacks on the media. Ahead of his trip, Milei criticized Europe, describing it as being dragged down by a "perverse welfare state" and excessive regulation.
Despite his criticism, Milei has praised Argentina's ties with France and his relationship with Macron. His visit aims to attract investors and promote Argentina's economic opportunities, as he seeks to boost his country's economy and improve his narrative ahead of the presidential election in October 2027.
Key points
- Argentine President Javier Milei visits France to promote investment opportunities
- Milei's "new Argentina" policy offers tax benefits for projects involving investments of over €200 million
- Argentina has modified glacier protection laws to facilitate exploitation of copper, gold, and lithium reserves
