MercoPress. South Atlantic News Agency

Milei’s budget for 2027 contemplates the purchase of three conventional submarines and two frigates

The budget proposed operation includes US$ 2.3bn for three conventional submarines, and US$ 1,2bn for two multi-functional frigates, totaling US$ 3,5 bn.

The Government of the Argentine president Javier Milei included in the draft 23027 budget a historic initiative to advance in the acquisition of submarines and all purpose firgates for the Navy as part of his policy to reequip and modernize the armed forces.

The initiative has been applauded by different nationalist groups and defense promoting lobbies plus given ample diffusion in their social media. The draft delivered to Congress contemplates authorization for the Executive to finance US$ 3.5 billion, mainly for three conventional submarines and two multi-mmission frigates.

The proposal is part of an annex to Article 42 which enables the Executive to to carry out public credit operations.

Details of the budgeted operation includes US$ 2.3 billion for three conventional submarines, and US$ 1,2 billion for two multi functional frigates. Argentina’s sub base is located in Mar del Plata and the main naval bastion at Puerto Belgrano, next to Bahia Blanca

Both operations are contemplated under a loans scheme with a minimum amortization period of t least three years. The sums were obviously presented in Argentine Pesos with a December 2027 exchange rate of $1,847.6 per dollar..

In this context, the submarines and frigates do not appear among the investment projects with assigned credit for 2027, since they are already underway are listed. This includes four light naval helicopters destined for the Puerto Belgrano Base and is labelled under the maintenance and infrastructure program.

The Argentine Air Force also receives additional consideration with the modernization and technological update of infrastructure related to the incorporation of the multi-role fighter aircraft F 16 in the VI Air Brigade of Tandil and the Río Cuarto Material Area, in Las Higueras. The financing will come from the National Treasury.

The Budget also includes multi-year allocations related to the F-16 Program to restore military ramp service in fifteen brigades, bases, and detachments, and to recover the maintenance capacity of runways and helipads of the Palomar Logistics Area Construction Group.

Finally for 2027, the message from Milei's Government on defense underlines the objective “to consolidate a horizon of predictability that allows not only the acquisition of new assets but also the proper maintenance and modernization of already incorporated defense systems.”

Argentine naval officers normally train in submarine operations with their Braziian counterparts.