Julio Cordero at the crossroads: how the Cabinet navigates the split between Milei and Rocca

The open conflict between Javier Milei and Paolo Rocca, CEO of the Techint Group, created an uncomfortable situation for several high-ranking officials who have cultivated relationships with both. Julio Cordero, Secretary of Labor, is among the most exposed: he spent years in Techint’s legal department before joining the government, and now must manage his loyalty to the administration without breaking with his close professional past at the country’s leading steel company.

The Trigger: Steel Pipe Bidding and Its Consequences

Tensions between the President and Techint’s CEO escalated rapidly after a specific event. The Southern Energy consortium—comprising Argentine oil companies Pan American Energy, YPF, and Pampa Energía, along with British Harbour Energy and Norwegian Golar LNG—decided to award a contract for Indian-origin steel pipes, made with Chinese steel, for the construction of the gas pipeline connecting Vaca Muerta fields to the Gulf of San Matías.

Techint protested this decision, arguing it harmed local industrial employment and national production. However, for Milei, the situation represented something different: confirmation of his economic thesis on the benefits of unrestricted free trade. The President saw the conflict as an opportunity to demonstrate that when genuine competition exists, prices fall and benefit consumers.

Julio Cordero and Officials with Techint Roots: a Delicate Position

The emergence of the conflict placed Julio Cordero in an awkward position. As Secretary of Labor under Sandra Pettovello, Minister of Human Capital, Cordero depends administratively on a official who maintains established ties with major Argentine businessmen since the start of the libertarian government. Pettovello, in fact, visited the Tenaris Etihad plant in Abu Dhabi in November, highlighting the continuity of these relationships.

Cordero was not the only former Techint employee caught in this dilemma. Carlos Torrendell, Secretary of Education appointed by Pettovello, was able to appoint Ludovico Grillo—who had led the Roberto Rocca Technical School—as head of the National Institute of Technological Education (INET). None of these appointments were challenged by the Casa Rosada at the time.

Most of the officials aligned with the government who previously worked at Techint chose to stay in the background during the confrontation. Julio Cordero adopted this low-profile strategy, avoiding involvement in the dispute to prevent any appearance of divided loyalty. “I wore the Techint shirt, and this level of disrespect surprises me,” whispered one of these officials, reflecting discontent within the margins of the official circle.

Internal Fractures: Who Supports Milei, Who Remains Silent

As Milei intensified his confrontation with Rocca, divisions appeared within the Cabinet. Federico Sturzenegger, Secretary of Deregulation and State Transformation, publicly defended the purchase of Indian pipes and even accused Rocca of submitting a bid 40% more expensive. However, officials with longer-standing ties to Techint—like Julio Cordero—preferred not to get involved.

According to official sources, most ministers rallied around the President, though several admitted they were unaware of how deeply Milei felt about one of Argentina’s most influential businessmen. One of the most prominent figures in the official team privately commented: “There were situations or market coup attempts, and internally it was talked about that they were playing us in a complicated way. But I didn’t have that information. If the President said it, there must be a reason.”

Santiago Caputo and the Break: Who Influenced the Presidential Decision

Off the public radar, several presidential aides pointed to Santiago Caputo, Milei’s chief advisor, as the intellectual architect of the rupture. “He’s the one who convinced him that Techint tried to destabilize,” critics within the official circle said. Other senior officials, surprised by the conflict, suggested “the enemies were others” and that they had never heard Milei express suspicions about alleged Rocca conspiracies during September 2025, when the government faced political and currency turbulence after the electoral defeat in Buenos Aires.

Deep Roots: Years of Silent Tension

The first tensions between Milei and Techint were not recent. Months earlier, Rocca had warned about the presidential decision to accelerate the country’s trade liberalization, urging attention to the threat China posed to local industry. But these disagreements had never resulted in public attacks or direct confrontations in Cabinet meetings or political forums.

What’s striking is that this rupture contrasts sharply with their initial relationship. When Milei took office, his transition team—led by Nicolás Posse, who, like the President, had ties to businessman Eduardo Eurnekian—urgently needed energy, oil, and gas experts. Milei’s team opened the doors to several Techint technical staff. “They adored Rocca,” recalled someone involved in designing the first libertarian Cabinet.

The Forgotten Financial Support: The 20 Million Pesos of 2023

A detail that puzzles Karina Milei and her close circle is that Inurban Inversiones Urbanas Nuevo Milenio—the construction arm of Rocca’s holding—contributed 20 million pesos to Milei’s party for the runoff against Sergio Massa. This contribution was declared to the judiciary and appears on the National Electoral Chamber (CNE) website.

Additionally, Rocca publicly supported Milei when he assumed the presidency, stating he shared the presidential diagnosis: “the situation is unsustainable.” Techint’s CEO also publicly backed the “reset” of the economy. Yet, Milei and his circle seem to have dismissed or minimized these past ties in their current critique.

Will the Conflict Be Temporary? Rocca’s Silence Signals

Rocca has chosen not to respond to the President’s public attacks, despite being under fire for three consecutive days. He has not yet filed a formal complaint for alleged dumping regarding the Indian pipe purchase. According to government advisors, these signals suggest that the Techint CEO is seeking peace, acting like a “chess player” carefully studying each move.

From Casa Rosada, however, the perception remains of constant hostility, especially since Sturzenegger took office. An important official advisor trusts that Milei will show willingness to ease the pressure, allowing the confrontation to dissolve. Officials like Julio Cordero await in silence for that possible turn.

Milei’s Political Logic: Trade Liberalization as a Symbolic Battle

Analysts from Casa Rosada explained that the President got involved in the controversy because the bidding for pipes had a strong symbolic component. Determined to defend his free-market approach, Milei abandoned his recent moderate tone and launched a fierce attack on Rocca, a formidable rival for other politicians.

“Those with more expensive, lower-quality products are not worthy of market favor, and if they want to do it through shady dealings with the state, they should disappear and go bankrupt,” he declared from Mar del Plata during La Derecha Fest. Milei used his characteristic dichotomous political style to fight back, once again targeting what he calls “the caste” of the establishment, his new symbolic enemy.

The Contrast: Rocca versus Bulgheroni in the Presidential Circle

A revealing aspect is how Milei and his close circle treat Rocca very differently from other businessmen. While considering Rocca a potential outsider capable of destabilizing, they see the Bulgheroni family—Bettina and Alejandro—as genuinely close to the government.

In fact, Karina Milei developed a close relationship with Bettina Bulgheroni, wife of oil magnate Alejandro Bulgheroni. In March 2024, the President’s sister appointed Bulgheroni as ambassador of the National Brand. Months later, in May, the head of the Educando Foundation became the first woman elected to the Inter-American Council of Commerce and Production (CICyP). Recently, she joined the Argentine business delegation at the Davos Forum in Switzerland.

The Dilemma of Julio Cordero and Other Officials: Loyalty vs. Personal History

For Julio Cordero and officials in similar situations, the Milei-Rocca conflict presents an uncomfortable dilemma. So far, according to official sources, Milei rules out initiating a purge to remove officials who previously worked at Techint or have ties to Rocca. “What matters is that they align with the government’s ideas, regardless of their past employment,” say sources close to the President.

However, this official tolerance does not eliminate the discomfort of being caught between two worlds. Julio Cordero remains in his position with little influence, but his demonstrated loyalty to the President coexists with his decades-long professional history at Techint. This tension, though silent, reflects the deeper cracks caused by the open confrontation between Milei and one of Argentina’s most powerful businessmen.