Why Javier Milei shattered Argentina’s bond with Spain

BUENOS AIRES, Argentina — Fighting out of the red corner: Spain’s exasperated Prime Minister Pedro Sánchez. Fighting out of the blue corner: Argentina’s pugnacious President Javier Milei.

The two leaders and their corners are locked in a spiraling diplomatic crisis that threatens to create a major rift between Madrid and Buenos Aires.

Milei landed a blow during a rally of far-right parties in Madrid last weekend, insulting Sánchez’s wife. The Spanish government responded by recalling its ambassador to Buenos Aires and demanding Milei publicly apologize, which the libertarian leader has refused to do.

As a result, Madrid has now formally withdrawn its ambassador — effectively breaking off diplomatic relations with Argentina. Milei, meanwhile, is accusing the Spanish government of involvement with people aiming to stage a coup against him.

From a café overlooking the Río de la Plata and with an alfajor honey-nut treat in hand, POLITICO breaks down the transatlantic crisis.

How did the Sánchez-Milei fight start?

To kick off its European election campaign, Spain’s far-right Vox party organized a rally in Madrid on Sunday and invited some of the world’s best-known populist leaders to attend. Among those present were France’s Marine Le Pen and Argentine populist Milei, who delivered a bombastic speech in which he called Spain’s governing Socialist Party a “cursed and carcinogenic” influence on society.

During his speech, Milei ridiculed the recent time-out that Sánchez took to reflect on whether he wanted to stay on as prime minister — a move prompted by the launch of an apparently unfounded influence-peddling probe into his wife, Begoña Gómez.

“You have a corrupt wife … And you took five days to think about it,” Milei jabbed.

His words outraged the Spanish government, which recalled its envoy to Buenos Aires and demanded Milei publicly apologize.

Prime Minister Pedro Sánchez hinted he will seek to raise the conflict in Brussels. | Thomas Coex/Getty Images

Rather than back down, however, the Argentinian government doubled down. Interior Minister Guillermo Francos said Monday that Sánchez should be the one apologizing because his government had insulted Milei first.

Francos appeared to be referring to recent comments by Spanish Transport Minister Óscar Puente suggesting that Milei “consumed substances” and calling him “someone very bad who had gone very far.”

How Milei is fueling the fight

Now back in Buenos Aires, Milei appears intent on turning up the heat.

“There is no circumstance in which I will apologize,” he said in a televised interview on Monday. “Today the whole world is talking about his wife’s corruption cases and they know that [Sánchez] is involved in her influence peddling.

“They know he’s even pressured the judge involved in the case,” he added, without providing evidence to support his assertions.

Milei added that his presence at the Vox rally was payback for Sánchez’s having supported center-left politician Sergio Massa in last year’s Argentine elections.

“Not only did he campaign for Massa, but he used all of his campaign’s attacks against me,” Milei said. “He said I was delusional, crazy, and warned that a bunch of things would happen [if I were elected], but not a single one of those has.”

Milei alleged that Sánchez was now using the clash to benefit the Argentine opposition that is intent on unseating him.

“Who is the totalitarian here? He is using his personal problems to favor a movement that aspires to stage a coup,” he said.

How is it playing in Buenos Aires?

While the clash with Sánchez dominates the front pages of Argentina’s major newspapers, the public is reacting to it with a bemused shrug.

With winter approaching in the southern hemisphere, Tuesday’s televised morning shows spent little time on the diplomatic crisis, opting instead to advise viewers to protect themselves from the cold by bundling up and drinking warm mate.

Although Milei has only been in office six months, Argentinians are already accustomed to their president fighting with political leaders around the world.

Milei last year called Pope Francis an “imbecile” and implied he was the devil’s representative on earth. In March, Colombia expelled Argentine diplomats after Milei referred to President Gustavo Petro as a “terrorist assassin.” Shortly after that, he said Mexican President Andrés Manuel López Obrador was “ignorant.”

Argentinians are already accustomed to their president fighting with political leaders around the world. | Luis Robayo/Getty Images

Luis, a 34-year-old office worker who preferred not to give his last name, called the latest scuffle an unnecessary quilombo (mess).

“Milei’s a crazy person, he can’t help it,” he said. “It’s not like we don’t have problems at home … But he’s a showman, and I guess we’re entertained.”

Why is he doing it?

There is a reason why comparisons between Milei and former U.S. President Donald Trump abound: Both politicians thrive on drama and are skilled at using it to distract attention from inconvenient issues.

Since taking office last year Milei has succeeded in reducing hyperinflation in Argentina much faster than predicted — impressing even his harshest critics and confuting those who predicted an economic collapse, akin to that triggered by former Prime Minister Liz Truss in the U.K.

But the president’s austerity measures have drawn hundreds of thousands of Argentinians to the streets in protest, and polls indicate that roughly half the country opposes his policies. With his party holding a mere 45 seats in the country’s 329-seat congress, Milei’s hold on power is hardly secure.

For that reason, political columnists like La Nacion’s Carlos Pagni see the Sánchez spat as typical of a “single-topic government” that runs not on political issues but on the anger of its supporters.

That fury can only be maintained by constantly finding new enemies to feud with and against whom the base can be mobilized.

What does it say about LatAm-EU power balance?

Following Milei’s latest statements, Spanish Foreign Minister José Manuel Albares on Tuesday announced the definitive withdrawal of the country’s ambassador in Buenos Aires.

The step marks a break in relations: If and when the crisis ends, Spain will have to appoint a new representative.

Albares added that the Spanish government will analyze the June 21 visit to Spain that Milei has announced, though he did not say if Madrid would block the Argentine president entering from the country.

Milei dismissed the move as “nonsense one expects from an arrogant socialist.”

The latest developments could have a considerable economic impact, however. With €18 billion in assets in Argentina, Spain is the second-largest foreign investor in the country, meaning that a lasting rift would likely hurt the nation’s already delicate financial situation.

A lasting rift would likely hurt the Argentina’s already delicate financial situation. | Juan Mabromata/Getty Images

Sánchez has hinted he will seek to raise the conflict in Brussels, but it’s unclear if the EU could offer anything besides a boilerplate condemnation of Milei’s words. This weekend the bloc’s chief diplomat, Josep Borrell, did just that in declaring that “attacks against family members of political leaders have no place in our culture: We condemn and reject them, especially when coming from partners.”

Milei, meanwhile, appears intent on strengthening his ties with Europe’s far-right populist leaders, whom he considers an additional base of support.

“My trip to Spain has shown that I am the world’s greatest exponent of freedom,” he boasted on Monday. “I am in another league.”

Milei and his allies on the continent appear aligned on a key trade pact between the EU and the South American bloc of Mercosur countries: They regard the EU’s demands to seal the deal, especially on sustainability requirements, as untenable. Spain has traditionally been Mercosur’s main ally on the agreement.

During a recent visit to Brussels, Diana Mondino, Argentina’s foreign minister, stressed that sealing the long-awaited deal was a priority — but also made clear that Buenos Aires would shop for trade partners elsewhere should the two sides fail to agree on the accord.

While some of Europe’s far-right parties oppose the deal altogether, others agree with Milei that the EU is simply asking for too much.

With support for populist parties expected to surge in the upcoming European Parliament election, Milei may eventually take his roadshow to Brussels. Which EU leader will he target then?

Camille Gijs and Antonia Zimmermann contributed to this report.