Javier Milei's economic program proposes deregulation and privatization of state-run industries to boost exports and investment, sparking widespread protests in Argentina.

The current annual inflation rate in Argentina is 211 percent.

Javier Milei was inaugurated as Argentina's president in December 2023.

Javier Milei plans to replace Argentina's local currency with the US dollar as part of his economic reform policy.

"Javier Milei's political ideology is libertarian, as evident from his policies aimed at deregulating the government, privatizing state-run industries, and cutting public spending, which are intended to stimulate Argentina's economy through free market principles."

Javier Milei was inaugurated as President of Argentina in December.

"40% of Argentina's population is currently living in poverty."

President Milei's economic reform measures aim to improve Argentina's economy by deregulating the government, privatizing state-run industries, and increasing exports and investment.

Argentina is facing economic challenges due to President Milei's policies, including reduced public spending, currency adjustments, and increased prices for basic services, which have led to widespread protests.

Javier Milei has introduced a large package of economic reforms in Argentina, totaling 366 articles, although the exact number of reforms is not specified.

"Argentina's annual inflation rate under President Javier Milei is 211 percent."

Argentina owes the International Monetary Fund $44 billion.

The expected inflation rate in Argentina by the end of the year is 200%.

One of the key provisions of President Javier Milei's economic reform decree is the abolition of the rental price cap.

"State-run industries will be privatized as part of Javier Milei's economic reforms."

Javier Milei's policy agenda in Argentina focuses on economic reforms, including deregulation, privatization, and public spending cuts, to boost the economy and investment.

Javier Milei's economic program proposes deregulation and privatization of state-run industries to boost exports and investment, sparking widespread protests in Argentina.

Title:

Content: Streets of Argentina Ablaze with Dissent as Milei’s Controversial Reforms Ignite Outrage

In a stunning turn of events, Argentina has become a battleground for public discontent following President Javier Milei’s introduction of a series of controversial proposals. Thousands of Argentinians have taken to the streets, enraged by the president’s push for drastic cuts to public spending.

Milei’s latest measures, unveiled on Wednesday evening, aim to revolutionize Argentina’s struggling economy through a variety of initiatives. These include deregulating the government and opening up state-run industries for privatization in order to spur both exports and investment.

However, the people’s outrage has manifested in widespread protests, often met with a heavy police presence. Gathering in front of the Argentine Congress, hundreds of demonstrators made their opposition to Milei’s proposals known.

Undeterred by the dissent, Milei appeared on national television to defend his agenda and offer reassurances of a prosperous future. He asserted, “Our objective is to rebuild our nation, restore individual freedom and autonomy, and dismantle the myriad of regulations that have impeded our economic growth for far too long.”

Acknowledging the mounting protests, Milei’s security minister, Patricia Bullrich, announced new measures aimed at maintaining public order. These measures grant federal forces the power to disperse protesters blocking streets without requiring a judicial order, and authorize the police to use video or digital evidence to identify and hold accountable those obstructing public thoroughfares. Moreover, the legislation empowers the state to apportion the costs of mobilizing security forces to the protesters themselves.

Milei’s presidential victory was built upon a campaign centered around reducing public spending. Since assuming office, he has already made significant changes to the country’s financial landscape. The value of the Argentinian currency has been adjusted, contracts of public employees with less than one year of service have been terminated, and the prices of basic services and public transportation have seen notable increases.

FAQ:

Q: What are President Milei’s proposals?

A: President Milei’s proposals include deregulating the government and allowing the privatization of state-run industries to boost exports and investment.

Q: Why are Argentinians protesting?

A: Thousands of Argentinians are protesting against Milei’s proposals due to their belief that the drastic cuts to public spending will adversely impact their lives.

Q: How is the government responding to the protests?

A: In response to the protests, the government has announced new measures to maintain public order, empowering federal forces to disperse protesters without a judicial order and enabling the identification of those obstructing public thoroughfares through video or digital means.

Q: What changes has Milei already implemented?

A: Since taking office, Milei has adjusted the value of the Argentinian currency, terminated contracts of public employees with less than one year of service, and increased the prices of basic services and public transportation.

(Sources: Information gathered from local news outlets)

How will Milei's reforms impact workers?

The current annual inflation rate in Argentina is 211 percent.

Title:

Content: The content originally appeared on: Al Jazeera – Latin America News

Argentine unions have begun a 12-hour strike in the capital to protest against tough economic reforms by President Javier Milei.

Wednesday’s demonstration is the most significant show of opposition to Milei’s spending cuts and privatisation plans since he took office last month and pledged to fix an economy dealing with 211 percent inflation.

The strike, coordinated by the umbrella union, the General Confederation of Labour (CGT), comes amid scrutiny of Milei’s two significant reforms: the “omnibus” bill going through Congress and a “mega-decree” deregulating the economy.

“Milei wants a country where poverty and informal work reaches 90 percent,” union member and national opposition deputy Hugo Yasky said on local radio station Radio Con Vos.

“Now there is no job creation. What there is now is widespread misery, people’s desperation, there are no measures to mitigate the damage they are causing.”

Demonstrators hold a placard that reads ‘down with the decree’ as they protest near the Pueyrredon Bridge during a one-day national strike, in Buenos Aires, Argentina [Agustin Marcarian/Reuters]

Earlier on Wednesday, the omnibus bill was approved by a committee in the lower congressional house, the Chamber of Deputies.

The mass strikes began at 12pm (15:00 GMT) and affected transportation, banks, hospitals, and public services.

Local airlines said they had been forced to cancel hundreds of fights due to the demonstration.

Protesters held placards that read “The homeland is not for sale” and “Eating is not a privilege” as some others held a giant puppet of Milei.

Another poster said, “Today’s retirees are yesterday’s workers, stop robbing them!”

Al Jazeera’s Lucia Newman, reporting from Buenos Aires, said it was “impossible” to determine the number of people attending the protest due to its scale.

“There seems to be a kind of unofficial agreement with the strikers and the security minister to allow these huge numbers of people to be here but only if they cannot disrupt traffic,” Newman said.

“It’s still very, very tense, and it’s an ongoing situation here, but it’s a huge turnout so far.”

Milei’s government said that the austerity measures are due to years of overspending that have left the South American country with huge debts to local and international creditors, including a $44bn deal with the International Monetary Fund.

“There is no strike that stops us, there is no threat that intimidates us,” Milei’s security minister and former presidential election rival Patricia Bullrich wrote on X.

“It’s mafia unionists, poverty managers, complicit judges and corrupt politicians, all defending their privileges, resisting the change that society chose democratically.”

Milei, an economist and former TV pundit, assumed the presidency after a shock win in last year’s general election.

As of 2024, what are the statistics regarding poverty?

annual inflation rate of 211% is highest in 32 years

What economic issue did Milei want to address?

Javier Milei was inaugurated as Argentina's president in December 2023.

Title:

Content: Argentina’s Javier Milei’s “Instant Democracy” and Neoliberalism

Javier Milei, YouTube screen grab.

Self-described “anarcho-capitalist,” Javier Milei became the president of Argentina in December 2023 promising “drastic” measures to temper the inflation crisis that has gripped the country. In the weeks since his election, Milei has brought forward an ambitious neoliberal restructuring program encompassing almost every aspect of the government.

Milei’s agenda confronts considerable opposition in Congress, where his governing coalition, Libertad Avanza, holds only a fraction of the seats. To adjust to these circumstances, Milei has cultivated a strategy of “turbo-politics,” bypassing legislative processes that risk delaying the implementation of his state reorganization plans.

Milei’s approach to Congress is symbolic of a decades-old strategy I have elsewhere called “neoliberal parliamentarism.” This concept describes a pattern of deliberate efforts to reform or subvert legislative institutions as a means of facilitating neoliberal reforms that do not have sufficient popular support to be actualized through usual democratic channels. These changes, even when temporary, often leave long-term scars on institutions by weakening norms of institutional forbearance.

The Emergency Decree and the Omnibus Bill

Milei has followed this blueprint, insulating the core elements of his agenda from democratic influence. The dismantling of the Argentine state began in earnest in mid-December when the executive branch presented an 83 page Necessity and Urgency Decree (NDU) aimed at repealing over 300 various laws and regulations, facilitating the privatization of core public assets.

This “mega-decree,” Milei claimed, was necessary to “start to undo the huge number of regulations that have held back and prevented economic growth”. It includes sweeping economic deregulation, such as the elimination of regulations on Argentina’s supermarket laws, which required the guarantee of low prices on basic products. It also includes measures to eliminate rent controls. Suggested labour reforms to cut pregnancy leave and increase the job probation period were suspended by the courts in January 2024.

Less than a week after issuing the NDU, the executive branch sent a massive omnibus bill titled Foundations and Starting Points for the Freedom of the Argentine People to Congress for consideration. The bill bundles the major elements of Milei’s neoliberal restructuring initiatives under the heading of a single piece of legislation with 664 articles. It will enable the government to carry out, in a matter of weeks, what would normally take years to achieve if these reforms were considered independently and subjected to the usual legislative scrutiny.

Reforms from the 351 page bill include an extraordinary provision declaring a state of public emergency on matters related to the economy, fiscal balance, social security, defence, health, and administration.

The emergency declaration delegates more than 1,000 extraordinary powers from the legislative to the executive until December 31, 2025, with the possibility of a two-year extension. This provision would enable Milei to make major reforms without having to consult Congress, thus eliminating a major hurdle to the implementation of neoliberal reforms.

Authors of the bill are attempting to facilitate the privatization of 41 state-owned companies across various sectors including energy, aviation, port administration, and agriculture. They also enable the reorganization of public administration, including embedding regulatory cuts from the NDU into law.

Additionally, the omnibus legislation proposes substantial reforms to environmental protection laws. These changes include the weakening of the Glacier Protection Law, allowing the mining of sensitive “periglacial” areas. The bill is presently being rushed through the legislative process by way of Extraordinary sessions of Congress, leading to marathon sittings during Argentina’s usual summer recess period.

“It’s impossible for people to have an idea of the enormous number of proposals Milei has sent,” said Ricardo Gil Laverda, a constitutional lawyer and former Argentine Justice Minister. “They cover dozens and dozens and dozens of laws, often on deep topics.”

To influence negotiations, Milei has threatened to put forward a non-binding referendum if the opposition parties do not agree to the main terms of his restructuring plan. Milei has also threatened to take away social welfare rights from protesters who block streets.

Despite these efforts, however, the reality of Milei’s lack of Congressional support has led him to compromise on some elements of his agenda as it makes its way through the legislative process. Although the structure of the bill remains, opposition politicians have made more than 100 changes to it, including curtailing the scope of the President’s emergency powers to one year rather than two, and retaining YPF, the national oil and gas company, in public hands, despite allowing most other state-owned companies to remain subject to privatization.

Neoliberalism and the Decline of the Legislature

Argentina is not unique. This most recent example of legislative subversion is a familiar tactic used to accommodate neoliberal restructuring, that has been utilized repeatedly by neoliberal reformers in recent decades, including the IMF-sanctioned omnibus bill rammed through Greece’s parliament in 2014.

This approach to the legislature is the consequence of the political limitations of neoliberal policy, which is opposed by considerable segments of society. A blueprint for this strategy is spelled out by former New Zealand Minister of Finance Roger Douglas in his 1993 book, Unfinished Business. The book recalls lessons from his experience implementing a neoliberal agenda dubbed ‘Rogernomics’ in the 1980s against the headwinds of widespread social and political opposition.

Douglas claimed it is “uncertainty, not speed, that endangers the success of structural reform programmes.” Neoliberal reforms should not be passed incrementally, but as a rupture, moving in “quantum leaps” to overcome popular opposition.

Democratic processes are typically slow and deliberate, designed to enable the legislative body to scrutinize the executive, foster compromise, and encourage debate. It was necessary, therefore, to streamline the democratic process to ensure that politicians could neither interfere with, nor demand meaningful changes to, neoliberal reorganization efforts.

Neoliberal governments should confront the legislature, not as an essential element of the process of democracy, but an instrument used by politicians and vested interests to interfere with the operations of the marketplace. “Speed is essential. It is almost impossible to go too fast,” Douglas said. “Once the programme begins to be implemented, don’t stop until you have completed it.”

This tactic did not occur in a vacuum, but emerged intrinsically from the content of a neoliberal theoretical framework that views democratic institutions as an additional layer of state administration to be overcome. Neoliberal thought is deeply skeptical in the capabilities of reason to infer or predict causality. Given the limitations of the mind, society should be governed, not by conscious modelling and careful planning, but according to spontaneous or “invisible hand” forms of social organization, which are the outcome of independent, unplanned individual decisions.

This position is most clearly expressed by Friedrich Hayek, who claimed that parliamentary sovereignty was in fact the “root of the evil” in modern society, since it facilitated the growth of the state. Legislatures constituted one limb of what Milton Friedman called the “iron triangle” of politicians, bureaucrats, as well as corporate and individual special interests that were perpetually reliant upon the government for rents, and therefore had an interest in obstructing market reforms.

‘Instant Democracy’ and the Rise of ‘Neoliberal Populism’

What should we make of Milei’s approach to Congress, then? Is it reflective of a new pattern in neoliberal governance, or merely the extension of an old one? The answer is both. While Milei’s approach clearly shares categorial similarities with the neoliberal legislative blueprint built for speed, his blending of these ideas with a coarse, populist rhetoric grounded in anti-statism, signifies an intensification of these patterns.

Milei’s populist neoliberal worldview contributes to a rising trend among far-right governments around the world to use this rhetoric to rationalize the subversion of democracy. This kind of “neoliberal populism” conflates democratic institutions with political actors, claiming that they are instruments of obstruction for self-serving politicians and bureaucrats.

This is a view Milei has proudly declared. “For me, the state is an enemy, as are the politicians who live off it,” he said. “We will put an end to the parasitic, stupid, useless political caste that is sinking this country.”

Grounded in the same logic as neoliberalism’s conventional demand for freedom from the state, democratic institutions increasingly appear as impediments to the logic of the marketplace. The elimination of cumbersome legislative processes, then, removes the obstacles that restrain market forces, generating popular economic independence, and restoring common-sense. This inverts the logic of democracy, making it appear as though executive rule is necessary to protect the interests of “the People” from Friedman’s “iron triangle.”

The anti-parliamentarism at the core of the neoliberal theoretical outlook has increasingly transformed into a populist program that mobilizes a general dissatisfaction with politicians against democratic institutions as such. Neoliberal politicians, such as Milei, use this reasoning to manufacture the conditions for the ongoing use of emergency powers and the concentration of authority in the executive branch.

The global elite, sensing “the smell of a big privatization wave coming,” are said to be “infatuated” with his take-no-prisoners approach to Congress. Thus, although not a new phenomenon, Milei’s brand of “instant democracy,” which conceives of speed and flexibility as the essence of legislative governance, has the support of both the financial elite as well as a growing populist dimension, giving it the hallmarks of a burgeoning political movement of the most regressive kind.

As the institutional forbearance that restrained most neoliberal governments to stay within the confines of liberal democratic constitutional structures continues to give way to a logic that sees the legislature as subordinate to the market, it is likely that we will continue to see the erosion of democratic standards.

Tom McDowell is a Lecturer in the Department of Politics and Public Administration at Toronto Metropolitan University. He is the author of Neoliberal Parliamentarism: The Decline of Parliament at the Ontario Legislature (University of Toronto Press, 2021).

Javier Milei plans to replace Argentina's local currency with the US dollar as part of his economic reform policy.

Title:

Content: The content originally appeared on: Al Jazeera – Latin America News

Argentines are voting in a presidential election that might see a far-right populist leader, who has vowed to overhaul the Latin American country’s ailing economy, emerge victorious.

Polling stations opened their doors at 8am local time (11:00 GMT) and are expected to accept voters until 6pm local time (21:00 GMT), with results to come by late Monday.

During Sunday’s ballot, voters are also selecting members of the Congress and provincial governors, specifically 130 lower house representatives and 24 national senators.

Decades of economic decline and record inflation have propelled libertarian outsider Javier Milei, the 52-year-old far-right populist leader of the Liberty Advances party, to the front of a tight race.

The eccentric economist and first-year lawmaker, who has described himself as an “anarcho-capitalist”, had emerged as an unexpected frontrunner in the August primary election.

Milei has been compared to controversial leaders like Donald Trump in the United States and Jair Bolsonaro in Brazil, and has been winning support among some Argentinians by promoting radical policy changes.

Voters are angry at traditional parties for failing to address the Latin American nation’s ailing economy for decades.

Milei has mostly focused on the economy, which experts agree is perhaps the most severe challenge facing Argentina right now, with inflation standing at a whopping 138 percent in September and only expected to grow by the end of the year.

To fix the economic issues, Milei has proposed eliminating the central bank, replacing the local currency with the US dollar as Ecuador and El Salvador have done, and slashing public spending.

He has also promised cultural reforms as he has presented himself as an opponent of socialism at home and abroad, and is a staunch critic of abortion, which he has described as “murder” even though it was legalised by the country’s Congress in 2020.

Milei’s main rivals are Patricia Bullrich, a 67-year-old former security minister who is the candidate for the centre-right Together for Change coalition, and Sergio Massa, the 51-year-old incumbent economy minister who represents the governing Peronist coalition.

To win the presidential election, a candidate must secure 45 percent of the vote, or 40 percent plus a 10-point lead over their closest competitor.

Pre-election polls give Milei the best chance of winning, but they have proven notoriously unreliable in past elections.

So, it is possible that there will be two winners, which would force a second round of voting in November.

A new president and vice president are expected to take office on December 10.

"Javier Milei's political ideology is libertarian, as evident from his policies aimed at deregulating the government, privatizing state-run industries, and cutting public spending, which are intended to stimulate Argentina's economy through free market principles."

What does Milei promote in terms of healthcare and education?

suspended 366 decrees to ease economic controls and reduce spending.

Javier Milei was inaugurated as President of Argentina in December.

Title:

Content: 'No obstacle' to Argentina mega reform bill in Congress, government says

By Walter Bianchi

BUENOS AIRES (Reuters) - Argentina's government said on Tuesday that it was confident its sprawling economic reform bill, known as the "omnibus bill", would gain approval in Congress after it made concessions removing some divisive sections from the legislation.

The bill is a central plank in libertarian President Javier Milei's aims to overhaul the South American country's economy that is buckling under high debt loads, inflation running at over 200% and myriad capital controls to protect the peso.

"There should now be no obstacle for the law to be approved," presidential spokesman Manuel Adorni said in a daily press conference on Tuesday. "As we understand it is going to get approved, with the first half of that this week."

Milei took office in December after a divisive campaign in which he pledged a "chainsaw" plan to slash back the size of the state and cut spending with an austerity drive he argues is necessary to put the country's finances back on a firm footing.

That has gone down well with markets and investors, including major creditor the International Monetary Fund (IMF), though he has warned of tough months ahead for regular Argentines with a likely economic contraction this year.

The omnibus bill - a major part of Milei's reform plan - is expected to be debated in the lower house of Congress on Wednesday after the government yanked the key fiscal section following opposition to tax hikes and pension reforms.

While marking a significant concession by the government -- which still intends to push those fiscal plans separately -- the move was seen as likely to help avoid the bill failing in Congress where Milei only has minority support.

That helped the S&P Merval stock index edge up 1% on Tuesday, with sovereign bonds very slightly up on average.

The government still faces a major challenge to meet pledges for a zero deficit this year, while turning around an expected economic contraction estimated by the IMF at 2.8%.

"As soon as reality and the situation allows it, of course we are going to reverse this drop," Adorni added.

In popular parallel currency markets, used to get around strict capital controls and where people pay a large premium for dollars, the exchange rate was over 1,200 pesos per dollar on Tuesday, well away from the 826 peso controlled official rate.

In futures markets dollars were trading at 1,273 pesos by the end of June, reflecting expectations of a sharp slide.

(Reporting by Walter Bianchi; Editing by Adam Jourdan and Alison Williams)

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"40% of Argentina's population is currently living in poverty."

Title:

Content: December 16, 2023

As Argentina’s new president, it took only one day for Javier Meili to get rid of the Culture Ministry. Miley was inaugurated on December 10, and the next day, the liberal economist and former television commentator delivered on her campaign promise with characteristic bravery. Also on the chopping block – or, rather, in the path of her chainsaw, which Miley wielded throughout her campaign to symbolize her intention to cut government spending – was the Ministry of Women, Gender and Diversity.

Many other ministries were reduced in size and transformed into new entities. The Ministry of Social Development, the Ministry of Education and the Ministry of Labour, Employment and Social Security will be divided into a newly formed Ministry of Human Capital headed by former TV producer Sandra Pettovello. Meanwhile, the ministries of public works, transport, energy, mining and communications will be merged into a new infrastructure ministry. (It appears that the Ministry of Culture and the Ministry of Women, Gender and Diversity will be dissolved entirely.)

Coming out on top after a runoff election against Argentina’s former economy minister Sergio Massa, Miley is keen to show her supporters she is serious about austerity measures. The self-described “anarcho-capitalist” cut widespread subsidies for gas and electricity and canceled public projects, considering these actions necessary to bring Argentina’s economy under control. Additionally, Miley announced a plan to devalue the Argentine peso against the dollar to half its current value in an effort to prevent hyperinflation, a move lauded by the International Monetary Fund, which has held Argentina’s debt to the tune of $40 billion. More is due. Prices in Argentina have more than doubled in the past year, and 40% of the population lives below the poverty line.

Although Miley’s actions are presented as economic policy, they are also a means of exerting control. A fan of Donald Trump and Jair Bolsonaro (former presidents of the US and Brazil, respectively), Miley has a history of blustering, ignoring reporters, and promoting far-right views on issues such as abortion, immigration, climate change, and gun ownership. He also regularly attacks his political rivals, labeling socialists “trash” and “human excrement”. (Bolsonaro also fired his country’s cultural ministry when he took office, and Trump congratulated Miley on her victory, saying he would “make Argentina great again”.)

Miley has referred to his country’s Ministry of Education as “the Ministry of Education”, and his disparaging view of the arts and humanities extends back to history – to the public accounts of those executed and disappeared by Argentina’s 1970s military junta. Casting doubt on the numbers and mocking human rights activists. Miley’s vice president, Victoria Villarruel, a regular supporter of the junta, in September called for a tribute to the “victims” of leftist groups of the 1970s and the dismantling of the ESMA Museum and Memory Site in Buenos Aires. , a former junta prison and torture center, has recently been named a UNESCO World Heritage Site.

Source: www.theartnewspaper.com

As of 2024, what are the statistics regarding poverty?

President Milei's economic reform measures aim to improve Argentina's economy by deregulating the government, privatizing state-run industries, and increasing exports and investment.

Argentina is facing economic challenges due to President Milei's policies, including reduced public spending, currency adjustments, and increased prices for basic services, which have led to widespread protests.

Javier Milei has introduced a large package of economic reforms in Argentina, totaling 366 articles, although the exact number of reforms is not specified.

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Argentina’s Javier Milei Is Looking To Bluff His Political Rivals

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And just like that, Argentina’s ultra-libertarian president, Javier Milei, sent the whole socio-political-economic ecosystem into disarray

Praised for his moderation and pragmatism during the first few weeks of his presidency, the self-proclaimed anarcho-capitalist has now put in place a series of controversial measures which have divided public opinion, generating a new iteration of Argentina’s infamous “grieta,” our very own version of the polarization that has now become the norm across the so-called ‘Western World.’ But, it’s no longer about the antagonism between Kirchnerites and their opponents, mainly represented by Mauricio Macri and the Juntos por el Cambio coalition, but about those blindly in favor of the wild-haired economist and those denouncing his every move as a diabolic, anti-democratic part of a ferocious plan to tear down the tenets of Argentine society.

Both sides seem to agree that he is executing a carefully crafted plan that will either elevate Argentina back to the lost status of “global power” of the late 19th century or ravage the nation in order put it on the chopping-block and conduct a fire sale to hand over the crown jewels to global financial elites. Those with access to the Casa Rosada tell a different story though, one of amateurism and incomplete staffing that would suggest the La Libertad Avanza coalition is acting more out of necessity than Machiavellian genius.

Milei finally broke out of his honeymoon period with those who didn’t vote for him after launching a massive package of reforms through a “decreto de necesidad y urgencia,” an emergency decree (DNU) which has become the standard practice for presidents seeking to bypass Congress and is generally used for less ambitious projects. The DNU is truly massive, with 366 articles including the repeal of multiple laws which call into question the constitutionality of the measure, even if governing via DNU is already contrary to the spirit of the Constitution and something that has happened in each of the last several administrations. It was quickly followed by the Omnibus law, equally as massive in its scope and ambition, and its capacitiy to divide the political field.

Put together by liberal economist Federico Sturzenegger, who ran the Central Bank under Macri and helds no role in the Milei-Villaruel administration until after the project was presented, the “mega-decree” was announced by national (and obligatory) broadcast several weeks in a dramatic scene that had Milei as the protagonist in the foreground and his whole team standing behind, statue-like, as the president read sternly.

Earlier that day they had scored a political victory with Security Minister Patricia Bullrich’s “anti-picket” protocol making its debut, effectively diluting the first public protest against the government. Some reports indicated there was more security than 'piquetero' protesters. Weeks later, the General Confederation of Labor united the pan-Peronist opposition in a massive march that managed to remain cordial, respecting Bullrich's protocol by trying to show political muscle in the streets.

The reform package conformed by DNU and Omnibus bill immediately generated the reaction of Milei's political opponents, along with a substantial portion of the population who took to the streets for a traditional “cacerolazo,” a protests with pots and pans reminiscent of the worst days of the 2001 crisis. There are no coincidences. Congressional leaders from the pan-Peronist Unión por la Patria coalition spoke with union strongmen from the General Confederation of Labor (CGT) umbrella union group. Members of the Unión Cívica Radical (UCR) warned of unconstitutionality and specialist lawyers indicated Milei was trampling all over the Constitution by failing to respect the separation of powers. Buenos Aires Province governor Axel Kicillof, probably the leading member of the Peronist opposition, and his government decided to ignore Bullrich’s “anti-picket” protocol claiming it violated the constitutional right to protest. A few weeks before, Economy Minister Luis ‘Toto’ Caputo unveiled the government’s initial economic plan, generating a similar reaction in the political field which didn’t seem to make its way to the general population. The situation is beginning to change and as the actual implications of the Milei administration’s actions make an impact, social and political actors will begin to respond.

There should be few doubts that one of the strongest points of La Libertad Avanza’s electoral strategy had to do with communications, particularly on social media. These early moves suggest they will try and double down, betting on the use of their skills to try and compensate for the lack of political support, despite a strong victory over both Sergio Massa and the Peronists, and Bullrich and Juntos por el Cambio. Toto Caputo, however, is known to be particularly uncomfortable with the media. His pre-recorded message several weeks ago announcing tough economic measures — many of which contradicted Milei’s campaign promises, particularly tax hikes — was delayed several times reportedly due to the need for multiple takes and Milei’s direct involvement (or maybe indirectly through sister Karina). The second measure he announced, for example, was a year-long reduction of government advertising to zero – a direct strike to the beleaguered media industry and a measure that has practically zero impact on the deficit but high popular approval. The over-dramatization of the security operation to contain a moderate-to-small protest early into the presidency, together with pictures of Milei and Bullrich supervising from police headquarters, allowed them to take advantage of the far-left Partido Obrero to score an easy win and show his electorate that they can control the streets. Yet, controlling a couple of thousand protesters is one thing. The CGT protest that brought together the political and social power of the unions remained under control, and that's a win for the government, but it was a political protest. If the middle class begins to lose its temper, and expectations, Milei could face a much more difficult scenario.

The “basis for the reconstruction of the Argentine economy” reform package could be another attempt to win the communications game and take the spotlight to appear active in the eyes of the public opinion. With absolute minorities in both chambers of Congress and several controversial reforms included in a massive package passed by Milei’s mega-DNU, it's difficult to imagine that it will quickly pass in the Chamber of Deputies, despite an early win at the commission level with the help of the former Juntos por el Cambio coalition. Furthermore, several interest groups are putting together legal arguments to dispute the issue in court, especially the labor reform which has been stayed. It could quickly make its way to a Supreme Court that has already proven eager to interject politically.

Ultimately, most, if not all, of the regulations, laws, and measures included in the decree will have to make their way through Congress and will therefore be subject to negotiations and amendments. Yet, Milei has shown initiative and wants to maintain, or extend, the popular support which took him to victory in the run-off and has already generated a circumstantial majority in the Senate to defeat the Peronist caucus and at the commissions to get the Omnibus bill past the first obstacle.

There are risks that the ultra-libertarian could prove authoritarian and anti-democratic. He’s shown some of that in the past, particularly by claiming he would govern by plebiscite if he didn’t have the support of Congress (something Hugo Chávez did to amend the Venezuelan constitution) and by picking a dictatorship denialist as his running-mate. Many of his detractors have pointed to signs that suggest Argentina could descend into a state of totalitarianism, and this emergency decree fuels their suspicion.

It’s not clear whether the conditions for such a situation are in place. For now, he seems to be bluffing his political opponents. We’ll see if someone calls his hand.

This piece was originally published in the Buenos Aires Times, Argentina's only English-language newspaper.

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"Argentina's annual inflation rate under President Javier Milei is 211 percent."

What economic issue did Milei want to address?

Argentina owes the International Monetary Fund $44 billion.

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In initial victory for Argentine President Milei, Senate gives overall approval to key reform bills

By ISABEL DEBRE
Associated Press

BUENOS AIRES, Argentina (AP) — Argentina’s Senate has approved key state overhaul and tax bills proposed by President Javier Miliei, delivering an initial legislative victory to the libertarian leader in his efforts to deliver on his promises of radical change.

Senators voted 37 to 36 late Wednesday to give their overall approval to the overhaul bill after 11 hours of heated debate as protesters urging lawmakers to reject Milei’s harsh austerity clashed with police outside Congress. The lawmakers still must approve individual measures in an article-by-article vote that will stretch throughout the night.

In a reflection of the fierce backlash to the legislation and deep polarization gripping Argentina’s Congress, Vice President and head of the Senate Victoria Villarruel cast the tiebreaking vote in favor of Milei’s agenda.

The legislation delegates broad powers to the president in energy, pensions, security and other areas and includes several measures seen as controversial, including a generous incentive scheme for foreign investors, tax amnesty for those with undeclared assets and plans to privatize some of Argentina’s state-owned firms.

If the Senate approves the articles with modifications, the lower house still has to okay them before Milei can claim passing his first law since entering office last December.

As Senators pored over the bills, protesters in downtown Buenos Aires hurled sticks, stones and Molotov cocktails at police who fired water cannons and tear gas to disperse the crowds.

The fiery right-wing economist rose to power on promises he would resolve Argentina’s worst economic crisis in two decades, with annual inflation climbing toward 300% and a recession deepening.

But his political party of relative novices holds just a tiny minority of seats in Congress and he has struggled to strike deals with the opposition.

Senators approved two bills, a tax package that lowers the income tax threshold and a 238-article state reform bill that passed the lower house of Congress in late April after weeks of negotiations.

Initially dubbed the “omnibus bill” because of its more than 600 articles, the watered-down version at hand still delegates broad legislative powers to the president in energy, pensions, security and other areas.

The proposal’s immense scope — and staunch opposition to it — has limited progress.

“We have the weakest president we’ve ever seen who is trying to pass the biggest bill we’ve ever seen,” said Ana Iparraguirre, an Argentina-based analyst at Washington strategy firm GBAO. “That’s the contradiction.”

Unlike previous Argentine leaders since the return of democracy in 1983, Milei has failed to pass a single piece of legislation during his first six months in office. Instead, the populist outsider has relied on executive powers to slash state spending and sweep away economic restrictions.

“Today, it’s almost more important for Milei to demonstrate that he can pass laws in Congress than what he passes,” said Lucas Romero, director of Synopsis consultancy.

The package has faced tough resistance from the left-leaning Peronist movement loyal to former president Cristina Fernández de Kirchner, which has dominated Argentine politics for the last two decades and holds sway over the country’s powerful trade unions.

Thousands of bankers, teachers, truckers and workers from a range of other unions converged around Congress throughout the day, banging drums, blasting trumpets and chanting, “Our country is not for sale!” and “We will defend the state!”

“If this law passes, we are going to lose so many of our labor and pension rights,” said 54-year-old teacher Miriam Rajovitcher protesting alongside her colleagues, middle-class Argentines who say they’ve had to reconfigure their lives since Milei slashed their school budgets and devalued the currency, sending inflation soaring. “I am so much wor0se off.

The rally took a tense turn when hundreds of riot officers pushed back with their shields against angry protesters trying to surge through a barrier.

Police used pepper spray, water cannons and tear gas against the huge crowds while demonstrators set two overturned cars ablaze and threw Molotov cocktails.

Dozens of protesters were being treated by medics in the streets and police said 20 officers had been injured in the clashes. At least five Peronist lawmakers said they were hospitalized after police sprayed pepper spray in their eyes.

“Today the government is declaring war on the Argentine people,” Peronist lawmaker Cecilia Moreau told reporters outside Congress.

The presidency called protesters “terrorists” and accused them of “attempting to carry out a coup d’état” by disrupting Congress.

The Peronist bloc controls 33 out of 72 seats in the Senate while Milei’s party, Freedom Advances, holds just seven seats. The bill needed 37 votes from the 72 total legislators in the Senate to get a majority and ended up with a 36-36 tie.

Analysts say that foreign investors and the International Monetary Fund, to which Argentina owes a staggering $44 billion, are closely watching Wednesday’s vote to see whether Milei can build consensus with his opponents to deliver on his ambitions.

Wednesday’s article-by-article vote will stretch for hours, with analysts expecting lawmakers to further weaken the most divisive sections of the bills.

One of the most contested measures is an incentive program to spur foreign investments that offers lucrative tax breaks for 30 years, no import tariffs and other perks for big corporations that critics say go too far.

“What this law is hurting most are the pockets of workers, not the big companies that are just going to get richer,” said 36-year-old Juan Barreto, a bank employee jostling amid crowds of his fellow union members.

Argentina’s unions have also voiced vehement opposition to measures that would make it easier for companies to fire employees as well as plans to privatize some state-owned companies. The question of which ones will head to auction has generated intense debate.

Backlash to the tax bill has centered on an amnesty that would allow Argentines to register undeclared assets at home and abroad without paying heavy taxes, as well as a lower income tax threshold to boost revenue.

Frustrated by legislative resistance, the president has moderated his previous all-or-nothing approach. Earlier this month, in a bid to break the impasse, Milei fired his politically inexperienced Cabinet chief and replaced him with Interior Minister Guillermo Francos, a career politician skilled at congressional wheeling and dealing.

In recent weeks, Argentina has gotten a taste of what awaits if Congress fails to pass the bills.

Sovereign bonds have tumbled. The country’s currency, the peso, has depreciated as well, widening the gap between the official and black market exchange rate to nearly 40%. The peso was trading at 1,255 per greenback on the informal market Wednesday, a rate far lower than earlier this year.

Even as the IMF has praised Milei’s agenda and released tranches of frozen loans, the fund has held back from striking a new deal with Argentina.

Meanwhile, Milei has been in Silicon Valley rubbing shoulders with billionaire tech executives Elon Musk, Tim Cook and Mark Zuckerberg. The meetings however, have not produced any announcements of substantial investments.

“What you’re seeing in the last three weeks is the market and investors getting a little nervous,” said Marcelo J. García, Americas director at geopolitical risk firm Horizon Engage. “The market is saying, ‘Show me that you can govern.’”

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The expected inflation rate in Argentina by the end of the year is 200%.

Title:

Content: Argentina's President Saves Economy, 5,000 Government Employees Don't Continue Inflation, People Crash
International Center Tsai Sha-ling / General Report
Javier Milei, a far-right liberal economist known as “Trump Argentina, ” announced a“ shock therapy ” after his election as Argentina ’ s president to rescue a serious economic crisis with drastic fiscal reforms, insisting that it is normal for things to get worse until concrete results are achieved, calling on people to survive the inflationary boom, and adding to a series of reforms, including the layoffs of more than 5,000 government posts, means that Thousands of government employees will not be rehired.
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Speaking to supporters, Mirei declared that he was “unwinding the suffocating web of government control ” and changing a large number of regulations that are hindering economic growth, stressing:“ We have no choice, no time, no room for meaningless discussion. ”
Our country needs to take immediate action, "he said.
In order to reduce government spending, Mirei announced that he will not renew the contracts of government employees hired before he takes office in 2023, and that he will be sworn in as president on December 10 this year; employees hired before 2023 will not be affected for the time being, but the related contracts will also be reviewed.
The report pointed out that the 2023 as the demarcation point, apparently in response to the former president's proposed salary increase in the last year of his term.
With inflation expected to reach 200% by the end of the year, Mirei intends to accelerate measures, including privatization of state-owned companies, in the hope of boosting exports and investment, easing labor laws, reducing protections for employees, making it easier for companies to lay off workers, and banning state intervention in the rental housing market.
In addition, energy and transportation subsidies will also be cut, and some government departments will be abolished.
Whether Mirey ’ s shock therapy will save the economy is still unknown, but people have taken to the streets to protest against soaring prices.
Some economists believe that although such measures may be necessary to solve Argentina ’ s long-term financial problems, without an adequate safety net, the poorest people in society may struggle to survive and may not be able to survive until the country ’ s economy returns to normal.
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What economic issue did Milei want to address?

One of the key provisions of President Javier Milei's economic reform decree is the abolition of the rental price cap.

Title:

Content: Thousands of Argentines protest President Milley's economic measures
Call for court action to repeal decree that undermines workers ’ and consumers ’ rights
Protests against economic decisions in Argentina
Thousands of Argentines demonstrated in Buenos Aires on Wednesday to protest against the decree of comprehensive economic reform and deregulation, proposed by President Javier Mille.
In detail, the protesters, who protested at the call of the unions, demanded that the courts intervene to overturn the decree, which they say undermines the rights of workers and consumers.
Argentina ’ s Congress is holding an extraordinary session this week to consider the decree at the request of the ultra-liberal Mili, who took office on December 10.
The decree would change or repeal more than 350 economic regulations in a country accustomed to heavy government intervention in the market, according to Sky News Arabia.
Among other things, the decree abolishes the rental price cap, some labor protections, and laws that protect consumers from arbitrary price increases at a time when annual inflation exceeds 160 percent and the poverty level is 40 percent.
A number of civic groups on Saturday filed a legal challenge to the constitutionality of the decree, while demonstrators on Wednesday waved Argentine flags and banners reading "The homeland is not for sale".
Building union official Gerardo Martinez told reporters during the march: "We do not question the legitimacy of President Milley, but we want him to respect the separation of powers.
Workers must defend their rights when there is unconstitutionality. ”
Javier Mille's "chainsaw plan" to cut government spending has sparked a series of popular protests against the government.
Other aspects of the decree include ending automatic increases in pensions, imposing restrictions on the right to strike, and easing price caps for private health services.
Some 7,000 public sector contracts are being terminated in a bid to cut government spending.
Unless Congress repeals the plan in its entirety, the decree will go into effect on Friday.
Milley ’ s far-right party has 40 of the 257 members of Congress and seven of the 72 senators.
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What industries were affected by Milei's deregulations?

"State-run industries will be privatized as part of Javier Milei's economic reforms."

Javier Milei's policy agenda in Argentina focuses on economic reforms, including deregulation, privatization, and public spending cuts, to boost the economy and investment.