Javier Milei's economic program includes cutting subsidies, canceling public projects, and devaluing the Argentine peso to prevent hyperinflation and bring the economy under control.

The current annual inflation rate in Argentina is 254%, according to government data.

Javier Milei was inaugurated as Argentina's president on December 10, 2023.

Javier Milei plans to devalue the Argentine peso to prevent hyperinflation.

"Javier Milei is a self-described 'libertarian anarcho-capitalist' who has proposed radical economic and political reforms in Argentina, including replacing the national currency with the US dollar and implementing strict penal measures."

Javier Milei won the presidential election with 56% of the vote in the head-to-head race.

Javier Milei has been inaugurated as President of Argentina.

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

Argentina is currently facing severe economic challenges, including high inflation above 140 percent, a significant portion of the population living below the poverty line, a bloated government sector, decline in industrial production, and a large shadow economy.

Javier Milei won the Argentine general election in November 2023.

Javier Milei approved 300 economic reforms in Argentina.

"Argentina's annual inflation rate under President Javier Milei is 140%."

Argentina owes $44 billion to the International Monetary Fund.

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

"Javier Milei's plan includes the privatization of 41 state-owned companies in Argentina."

"Javier Milei's economic reforms include the privatization of 41 state-owned companies, such as oil and gas company YPF, airline Aerolineas Argentinas, and railway company Ferrocarriles Argentinos."

Javier Milei's economic program includes cutting subsidies, canceling public projects, and devaluing the Argentine peso to prevent hyperinflation and bring the economy under control.

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

What economic issue did Milei want to address?

Devalued the peso
cut transport and energy subsidies

The current annual inflation rate in Argentina is 254%, according to government data.

Title:

Content: Skip to content Skip to footer

Argentines Take Feminist Strike to the Streets on International Women’s Day

Activists demand an end to austerity measures, growing poverty and worsening food insecurity under President Milei.

Argentinian women from all walks of life will take to the streets nationwide on 8 March, International Women’s Day, as part of a feminist strike calling for an end to the country’s growing poverty, which already affects 57% of the population of 46 million.

The protesters’ “most important demand” is a solution to Argentina’s “food emergency”, said María Claudia Albornoz, an activist from La Poderosa, a group that defends the rights of the five million people living in the country’s 6,500 slums, or villas miseria (misery villages).

Three months after right-wing libertarian president Javier Milei took office, Argentina’s ever-increasing food inflation has reached 56%, according to the latest analysis from La Poderosa. Government data shows the country’s annual inflation rate is 254%.

Real-terms wages and pensions are deteriorating, and people go to supermarkets not knowing whether the money in their pockets will be enough to buy foods they could afford just a few days ago.

Shoppers have one certainty, though: what were once basic goods such as shampoo are now luxury items. The small local grocery stores that allow their customers to pay on an informal trust-based credit system now keep track of only the items and quantities purchased, no longer bothering to note down the prices that are constantly rising.

The spiralling cost of living has been worsened still by Milei’s cuts to ‘ollas populares’, community kitchens run by social, civil and religious organisations, which are a last resort for the most impoverished families.

There are around 44,000 of these kitchens across Argentina, which were able to produce around 10 million meals a day last year.

Since then, Milei’s administration has stopped the government packages of non-perishable food staples, such as pasta, rice and yerba mate (a traditional herbal drink) being sent to these kitchens, arguing that it must conduct an audit on how they use these resources.

The cuts have led to “a very desperate situation”, said Albornoz, whose group La Poderosa runs 158 kitchens nationwide.

“Without these basic food staples, we cannot cook,” she said. “This causes us enormous distress, sadness and pain, because we can’t feed our families, a role that is very much attached to women and gender non-conforming people.”

Protesters have taken to the streets nationwide to demand the cuts are reversed, but the government has doubled down.

Ministers claim the kitchens’ volunteers — many of whom are part of larger groups of organised unemployed, informal workers and leftist activists known as ‘picketers’ — are committing “extortion” by using food to lure people to their protests. They say they made the cuts to end this practice, advising people to enrol in the government’s food support program rather than relying on the community kitchens.

The minister of human capital, Sandra Pettovello, even mocked protesters as they gathered outside the ministry, saying: “Boys, are you hungry? Come one by one and I’ll write down your ID number, your name, where you’re from and you’ll receive help individually.”

But four days later, as more than 10,000 people lined up to meet her, Pettovello signed a $210,000 food assistance agreement with the Christian Alliance of Evangelical Churches of Argentina. “No longer will the picketing organisations be in charge of distributing food and social plans paid for by the national state with the money contributed by working Argentines,” she said.

Shifting Priorities

It is primarily the austerity measures, growing poverty and worsening food insecurity that the 8M feminist strike will denounce this week.

For the first time since feminists began holding open decision-making assemblies in 2015, participants have agreed to make tackling hunger the demonstration’s priority.

Organisers have drafted a manifesto to read out during the demonstration, which includes statements aiming to challenge ‘libertarian’ ideas advocated by Milei, such as: “With hunger and without rights, there is no freedom” and “Enough of austerity and repression”.

Assemblies allow any civil society group or individual to present their concerns to be discussed. They have achieved something that no other social movement in Argentina has managed to: working together to tackle issues of reproduction of domestic and community life, as well as formal and informal work.

But in previous years, the assemblies’ middle-class feminists, who are more likely to be educated, have sought to give priority to protests on issues such as access to abortion, femicides and gender-based violence.

Now, as the country’s economic situation has worsened, their goals have shifted. They are now in agreement with working-class feminists, who have long argued that food security must be their top concern.

“What seems to me to have changed this year is that we are a priority,” Albornoz said. “Feminists were able to begin to reach a consensus on issues that we, the slum dwellers — the people who cannot cover the basic food basket — consider a priority.”

The food basket Albornoz referred to are the essential food items required to sustain an adult for a month. These cost $110 when converted from pesos at the official exchange rate, more than half the average monthly earnings of a person living in an urban area ($218).

The assemblies allow villeras (women who live in slums), feminist academics, trade unionists and LGBTIQ people to share their lived experiences and political thinking, which has enabled the feminists to agree on strategies of resistance.

This is more important than ever, as the misogynist discourse Milei regularly touted during his election campaign has in recent months materialised as an avalanche of regressive measures stripping away the rights of women and LGBTIQ people.

The president has scrapped the Ministry of Women, Gender and Diversity, replacing the entire department with an undersecretariat for protection against gender violence in the newly created Ministry of Human Capital.

His government has also ended two support programmes for victims of gender violence — one that sought to strengthen their economic independence, and another that provided psycho-social and legal help — and fired many of the public employees who worked on the hotline for counselling and assisting victims.

It also closed the National Institute against Discrimination, Xenophobia and Racism, and banned the use of language that is inclusive and gender-neutral in public offices or documents. Defending the move, presidential spokesman Manuel Adorni said inclusive language was being weaponised as “a political business”.

The government has further plans to weaken or dismantle legislation that feminists fought for, such as the 2019 Micaela Law, which introduced mandatory training in gender and gender violence for all public servants and the Law on the Voluntary Interruption of Pregnancy, which legalised abortion in 2020.

Ministers claim these closures and austerity cuts are needed to fix the ailing economy, but the main attacks on women and LGBTIQ people have come from the president himself.

In his speech at the World Economic Forum in Davos in mid-January, Milei spoke of “the cruelty of the bloody agenda of abortion”, said gender inequality no longer exists and branded feminism “a ridiculous and unnatural fight between men and women”.

Feminists fear the president’s misogyny, combined with his cuts, mean Argentina is “heading towards a scenario of worsening violence in general and gender violence”, according to Raquel Vivanco, who founded the Observatorio Ahora Que Sí Nos Ven (the Now That They See Us Observatory), which tracks femicides in the country.

“These structural conditions of extreme poverty and unemployment, as they increase inequalities, create more violence that can in turn increase numbers of femicide statistics,” said Vivanco.

There were 42 femicides in Argentina in January and February of this year. The observatory recorded the highest-ever number of femicides (297) in 2019, which was rightist president Mauricio Macri’s last year in office and was characterised by austerity policies that were harsh but not as extreme as those being introduced by Milei.

“Left With Absolutely No Rights

Though widespread hunger and attacks on women’s rights are the protesters’ main priorities, they also want Milei to address his measures of ‘economic terror’ and his denials that gender inequalities exist in Argentina.

Lucía Cavallero, a sociologist and researcher at the University of Buenos Aires and a member of Ni Una Menos (Not One Less), a group that fights gender violence, told openDemocracy about the dire economic situation in Argentina.

“There is an unprecedented devaluation of the peso, a deliberate freezing of wages and social subsidies, so inflation is brutal, and a perverse discourse of warning that it could be worse,” she said. “Added to all this is the deregulation of the economy in almost all areas.”

The government’s own data shows that one million people fell into poverty every month for the past three months. Albornoz believes these figures are an underestimate, though, telling openDemocracy that La Poderosa’s analysis indicates an increase of six million impoverished people in the past two months.

Argentina’s school year recently started, forcing many families to try to find creative solutions to not being able to afford school supplies, which cost an average of $150, or uniforms.

The best case scenario saw children reuse items from previous years or pick up supplies from the donation drives that took place across the country. At worst, though, “mothers said they would have to choose which children to send to school because they don’t have the school supplies or the smocks to send them all,” said Cavallero.

The effects of this economic and political turmoil are also being seen in housing, particularly since the government repealed the law regulating the rental market on 29 December.

“It left us tenants with absolutely no rights,” said Tamara Lescano, an activist from the social movement Inquilinas Agrupadas (Tenants United). “The lack of a legal framework enables real estate abuse”.

Rental contracts now have no minimum period and are able to be terminated at landlords’ discretion, without a need to consult the tenants or give a reason for the eviction — which was previously illegal. Landlords can also include unreasonable clauses in the tenancy agreements.

Lescano said the private rental sector in Argentina, which already encompasses some 10 million people, is growing — yet fewer and fewer landlords own more properties than ever.

Inquilinas Agrupadas receives an average of between 40 and 50 requests for advice every day, mainly from women with dependent children, pressured by their mostly male landlords.

“They Are Coming For Us”

The 8M strike faces a fresh challenge this year. Four days after Milei took office, his government outlawed any public protest involving the blocking of roads with a new ‘anti-picketing’ protocol that contains specific clauses allowing the police to criminalise, persecute and stigmatise protesters.

“They identify you in the marches, they take pictures of you, they film you. When we mobilise, the police, who are very violent, quickly repress us,” said Albornoz.

“This has already happened at various times,” she added, referring to hundreds of protests against Milei’s austerity measures that have been organised by different social organisations across the country in recent months.

The protocol also allows the government to issue protest organisers with hefty fines, deprive demonstrators of social aid, and punish parents or guardians who take minors to the marches.

These measures are attempts to intimidate the poorest, many of whom are women, said Gabriela De la Rosa, a member of the Polo Obrero, a social organisation affiliated to Argentina’s Trotskyist Workers’ Party, which runs 3,000 community kitchens nationwide.

“The movement of the unemployed is made up mostly of women comrades, who mobilise with their entire families because they have no one to leave their children with in order to demand food for their children,” De la Rosa told openDemocracy. “On the picket lines, in the encampments, in the mobilisations, the families often have a pot to eat, and at home, they don’t.”

As well as the risk of harsh policing, Argentinian feminists worry their protest could turn violent — fearing Milei’s repeated attacks, coupled with food insecurity and the general uncertainty caused by inflation and low wages, have set the stage for social unrest.

“There is fear of what might happen in the 8 March demonstration,” Albornoz acknowledged. “We have been holding assemblies to dispel this fear and to make the women understand that if we don’t take to the streets and defend our rights, we are going to lose much more than we have already lost.”

The feminists “will take all possible precautions” to avoid violence in the 8 March demonstration, said economist Candelaria Botto, the director of Economía Feminista, which seeks to expose gender inequalities in the world of work and business.

“But we know that we have to be there, on the streets, because they are coming for us.”

The future of our journalism depends on you.

Thank you for reading Truthout. Whether you’re a long-time reader or a first-time visitor, we need to make a request of you today.

Truthout is one of few truly independent news publications left. We’ve been able to publish stories like this one for over twenty years because of donations from readers like you.

At this moment, we’re working to increase our monthly recurring donations, gifts that form a critical core of our operating expenses. We hope to add $400 in monthly gifts in the next two days. If you can support us in this way, please make a monthly donation in any amount.

One-time donations are also vital – anything you can give makes a difference.

What economic issue did Milei want to address?

Javier Milei was inaugurated as Argentina's president on December 10, 2023.

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.
This is an advertisement, please continue reading.
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.
This is an advertisement, please continue reading.

Javier Milei plans to devalue the Argentine peso to prevent hyperinflation.

What economic issue did Milei want to address?

"Javier Milei is a self-described 'libertarian anarcho-capitalist' who has proposed radical economic and political reforms in Argentina, including replacing the national currency with the US dollar and implementing strict penal measures."

Title:

Content: The political program of the elected President of Argentina Javier Miley will lead the country to disaster, said the Chairman of the Federation Council Commission on information policy and interaction with the media Alexei Pushkov.
Cristobal Basaure Araya / Global Look Press
Javier Miley
He noted that Miley, who calls himself a “libertarian anarcho-capitalist ”, proposed replacing the Argentine currency with the US dollar, sending people to prison for any violation and selling organs in case of lack of money.
In addition, Miley opposed the participation of Argentina in the BRICS, and her friends announced the United States and Israel.
“Something suggests that his right-wing libertarian program could lead Argentina to a final catastrophe, ” the senator wrote in his Telegram channel.
Pushkov added that mostly their votes for Miley were given by young people who have no guidelines or beliefs, “with iPhones instead of brains. ”
Such young people, according to him, vote “do not understand for whom ”.
He also recalled that, according to the biographer Miley, an unmarried and childless 52-year-old politician through a veterinarian medium communicates with his dead dog.
As reported by IA Regnum, the far-right politician, the opponent of Argentina's entry into the BRICS Javier Miley won the presidential election, the second round of which was held on November 19.
Miley, who won 55.7% of the vote, promised the country a radical change.
He expressed his commitment to “democracy, free trade and peace ” and his intention to cooperate with“ the countries of the free world ”.
Miley will officially take office as head of state on December 10.

Javier Milei won the presidential election with 56% of the vote in the head-to-head race.

Title:

Content: Argentina sees the light with Maverick Javier Milei – Ivo Vegter

In a surprising turn, libertarian firebrand Javier Milei secured Argentina’s presidency after a second-round victory against his left-wing rival. Vowing to end decades of socialist mismanagement, Milei, an outspoken economist, faces challenges in implementing radical reforms, including abolishing ministries and dollarising the economy. While hailed as the world’s first libertarian president, Milei’s uphill battle involves legislative opposition and managing economic pain amid promises of a freer, market-oriented Argentina. Skepticism remains, awaiting the true impact of his ambitious plans in a nation grappling with deep-rooted economic struggles.

Sign up for your early morning brew of the BizNews Insider to keep you up to speed with the content that matters. The newsletter will land in your inbox at 5:30am weekdays. Register here.

Argentinians see the light

By Ivo Vegter*

It took a second round of voting, but the libertarian Javier Milei has defeated his Peronist rival to become president of Argentina.

A month ago, Javier Milei unexpectedly lost the first round of the Argentinian general election to his left-wing Peronist rival, Sergio Massa, after the latter had cynically promised zero taxes as a way to bribe voters.

In my column on the lessons South Africa could draw from that election, I said: ‘Let’s hope Argentinians see the light before Massa and Milei face off in the run-off election.’

Happily, they did see the light.

After decades of economic malaise under a government that for most of the last 30 years has been socialist, corrupt, wasteful and incompetent, leaving Argentina eighth from last in the Fraser Institute’s Economic Freedom of the World Report 2023, they elected Milei, a libertarian firebrand, in the biggest landslide since Juan Perón’s election in 1973.

Milei becomes the first libertarian president, not only of Argentina, but in the world. The closest precedent that comes to mind is that of Calvin Coolidge, the small-government conservative president during the Roaring Twenties in the US, but Milei is far more radical than that.

‘“oday the reconstruction of Argentina begins’, he said, after winning 56% of the vote in the head-to-head race. That was also his first lie as president-elect, since he doesn’t actually take office until 10 December, but we’ll let that slide.

Radical

To describe Milei as radical would be putting it mildly. He has described the country’s ruling elite as thieves and the government as ‘a criminal organisation’. He has promised to abolish ten of the government’s 18 ministries. He said he would do away with the central bank and dollarise the Argentinian economy.

‘The model of decadence has come to an end’, he told his supporters. ‘There’s no going back. We have monumental problems ahead. Inflation, lack of work, and poverty’.

Milei is an accomplished economist, and largely follows the Austrian School of individualist free-market economics. He has variously described himself as an anarcho-capitalist and a minarchist (an anarchist who accepts the legitimacy of a small government dedicated to protecting life, liberty and property).

He has been extraordinarily outspoken on the evils of socialism and statism, and how they turned Argentina from a once-wealthy world power into an over-indebted, poverty-stricken, underdeveloped basket case.

Mainstream media

The mainstream media, with its largely left-leaning bias, has compared Milei to former presidents Donald Trump of the US and Jair Bolsonaro of Brazil.

‘Argentina set for sharp right turn as Trump-like radical wins presidency’, trumpeted the Washington Post

‘Argentina Elects Javier Milei in Victory for Far Right’ was the headline in the New York Times, which added: ‘Argentina’s next president is a libertarian economist whose brash style and embrace of conspiracy theories has parallels with those of Donald J. Trump.’

The ‘embrace of conspiracy theories’ is a particularly vicious jab. Readers would have to follow a link to find an explanation, and it turns out that the Times only referred to Milei’s allegations of polling irregularities, which have not been tested.

It is entirely plausible that Argentina’s electoral system is less secure than that of the United States, and that the incumbents – who went as far as abolishing taxes in order to engineer a win – might have been involved in some electoral skulduggery.

Allegations of election fraud are very common on all sides of the political spectrum, and do not, in and of themselves, rise to the level of the debunked claims of Trump, and his attempt to derail the orderly election of his rival.

Authoritarians

More importantly, both Bolsonaro and Trump are alt-right populists. They are moral authoritarians – not liberals – and appeal to collectivist – not individualist – principles such as nationalism and protectionism. They have often, rightly, been described as fascist, which is just as antithetical to libertarians as is left-wing socialism.

That both former presidents expressed their support for Milei has a lot more to do with shared anti-socialist positions than any real congruence in their political philosophy.

Milei has himself rejected the right-wing label, and indeed, his classical liberalism (for which ‘libertarian’ in the American sense is a synonym) does not yield to a simplistic left-right analysis. Rather, it falls on the liberal end of an authoritarian-liberal scale, and on the progressive end of a conservative-progressive scale.

Sour-grape-ish

Milei does have some views that are questionable, or traditionally associated with the conservative right, such as his anti-abortion stance and his rejection of climate alarmism.

Neither define him, however, and both are issues on which libertarians can and do disagree.

By similar logic, Milei’s promise not to dismantle Argentina’s extensive social welfare programmes does not make him some sort of left-winger.

In focusing on incidental agreements between Milei and leaders like Trump and Bolsonaro, and ignoring the fundamental philosophical differences between the former’s individualist, free-market, small-government ideas and the authoritarianism, nationalism, populism and protectionism of the latter, the media does both Milei and their readers a great disservice.

That a politician does not perfectly reflect all one’s personal political or moral views is in any case far less of a concern when that very politician proposes as far as possible to keep government out of people’s personal affairs and to leave most of the world’s problems to the private sector.

‘When your response to everything that is wrong with the world is to say, “There ought to be a law,” you are saying that you hold freedom very cheap’, said Thomas Sowell.

Moreover, it seems extraordinarily petty and sour-grape-ish to complain about a few differences of opinion with a candidate who promises radical change in a country that is mired in economic crisis, thanks to the policies of its incumbent rulers.

Music to the ears

Sniping from the mainstream press aside, the rise of a truly libertarian president in one of the world’s most economically unfree countries should be music to a classical liberal’s ears.

Who doesn’t want to radically slash the size of government? Who doesn’t question the inflationary monetary policy of highly indebted countries? Who doesn’t want to see free enterprise flourish, and witness the departure of a government that strangles business with red tape and taxes, and tries to pick winners by throwing subsidies at favoured companies?

On the face of it, this should be an excellent experiment to show whether the libertarian prescriptions for government do, indeed, produce a better outcome than the socialist quagmire in which Argentina has been stuck for so long.

Pain and gain

Practically speaking, however, there are reasons to remain skeptical.

First, we’ve only seen Milei’s talk, and not his walk.

Second, making drastic changes in the structure of a country’s government and economy, as Milei proposes, will be painful.

It is arguable that the short-term pain is justified by the long-term gain, but electorates are rarely forgiving to those who inflict necessary pain. Witness Margaret Thatcher, who saved Britain from the socialist economic malaise of the 1970s, but remains hated to this day by those who bore the brunt of her reforms.

Dollarising an economy does not produce immediate results, for example. It can take years before the stabilising effect of dollarisation filters through to low inflation rates. It can, however, immediately harm people and even increase poverty levels, depending on the exchange rate at which existing deposits are converted.

Drastically reducing the size of government will also face much immediate opposition, especially from civil servants who stand to lose their jobs.

Privatising healthcare, education or other government functions is also fraught with transition difficulties. Much depends on exactly how such privatisation is carried out. It can fail, and even if the eventual outcome is a success, it could cause years of disruptions and dissatisfaction.

Then there are the entrenched patronage networks of the incumbent socialist government, who will be highly upset – and fight back vigorously – when the taps of corrupt fiscal spending get turned off.

Finally, few voters have the patience to wait five or ten years for radical free-market reforms to have a positive impact, and Argentina’s president only serves a four-year term before facing the electorate again.

Legislative opposition

A further obstacle to Milei’s reforms is that he will not be the philosopher-king of every libertarian’s dreams. He will not be a dictator.

He will simply be the head of the executive in a constitutional parliamentary democracy, with strictly circumscribed powers.

And the elections did not result in a similar landslide in the legislature.

Argentina has a 72-seat Senate, or upper house, and a 257-seat Chamber of Deputies, or lower house. Together, they make up the Argentinian National Congress.

In both houses, Milei’s libertarian coalition, Liberty Advances (La Libertad Avanza, or LLA) took more seats from the conservative coalition, Together for Change (Juntos por el Cambio, or JxC), than from the socialist Peronista coalition, Union for the Homeland (Unión por la Patria, or UxP).

In the Senate, this leaves the Peronistas as the largest coalition, with 32 seats. It would need 37 seats to command an outright majority. The conservative coalition, JxC, retains only 27 seats. As the third-largest party in the Senate, Milei’s LLA only has six seats, which even in coalition with the conservatives is not enough for an outright majority.

In the lower house, the picture is similar. UxP has 104 out of 257 seats, JxC has 93, and LLA has 38. The only difference is that here, a JxC and LLA coalition can command a simple majority.

This leaves Milei at the mercy first of the conservatives, who would welcome market-oriented reforms and a departure from socialism, but by their very nature would be reluctant to endorse Milei’s more radical, disruptive proposals. Once Milei has cleared that hurdle, he needs to gather a majority in the upper house, which will be even harder.

Argentina is also heavily indebted, including to the International Monetary Fund, and creditors are likely to have a say in how the country is run. Anything that scares them will raise the cost of credit, which Argentina can ill afford.

Wait and see

Once the initial euphoria of seeing a true libertarian in power has cleared, then, we are left with the sobering realisation that Milei may not be able to achieve anywhere near as much as he has promised.

Turning failing countries around is not for the faint-hearted, and it always comes with social upheaval and economic pain.

Even if Milei gets the good ship Argentina pointed in the right direction again, the prevailing winds and currents may still dash it – and its captain – upon the rocks.

Read also:

*Ivo Vegter is a freelance journalist, columnist and speaker who loves debunking myths and misconceptions, and addresses topics from the perspective of individual liberty and free markets.

This article was first published by Daily Friend and is republished with permission

Visited 57 times, 57 visit(s) today

Javier Milei has been inaugurated as President of Argentina.

Title:

Content: Russian Federation
Moscow
+ 2 °
Worldwide19 December 2023 10: 39
How Javier Miley treats Argentina with shock therapy: his reforms were compared to poison
During the first week in power, he sharply raised gasoline prices, devalued the peso and canceled preferential travel in public transport.
Javier Miley
Photo: REUTERS
The new Argentine president, Javier Miley, began his career.
Only a week has passed since his inauguration, and he has already announced so many reforms that another head of state would have been enough for a whole year.
However, this is not surprising, because even during the election campaign, he promised to conduct shock therapy in the country, and, having taken office, said that before the patient (in the sense of the Argentine economy) will get much better, he must get much worse.
Local wit assure that Miley gives the country poison in a narrow and high glass - so that it can be drunk only in small sips.
I mean, the hardest times are yet to come.
TIME OF HONEST PRICES
First of all, the new government reduced subsidies for public transport and electricity.
The economy minister said the tariffs had been “artificially lowered ” until now, and now it was time for fair prices.
Miley added that the previous authorities allegedly deceived citizens for preferential travel in public transport had to pay wild inflation.
Argentinian motorists, however, are also not happy now.
Gasoline prices have risen twice since the beginning of December: the first time by 15%, and then another 37%.
In addition, the government of Miley went on a serious devaluation of the national currency and halved the official exchange rate of the peso against the dollar.
However, the US currency can still be bought only on the black market (and at an even higher rate).
The reduction in the number of government officials was one of the main points of Miley ’ s election program and the reduction in the number of federal ministries from 19 to 9 is generally welcomed by the population.
Rather, it is about their consolidation.
Thus, culture, education, social and labor policy will now be concentrated in one ministry of human capital.
Called the police?
But the refusal to index pensions and fund public works caused serious outrage among a significant part of the population.
In particular, a sharp protest was expressed by the largest trade unions in Argentina.
Disgruntled voters are already preparing for the first protest against Miley ’ s policies.
Mass actions will be held in Buenos Aires today, December 20.
But even here, the head of state, nicknamed “El Loko ” in the press (that is, the Mad Man), prepared a number of surprises for his subjects.
He said that he had developed a new protocol to combat demonstrations.
Protesters will now be identified by “video, digital or manual surveillance ” and then billed for sending security forces to protect the order.
In other words, you can not only get under the batons of law enforcement officers, but also pay them overtime.
One thing is clear: Javier Miley needs money first, preferably in hard currency.
The comment of one of the representatives of the US presidential administration Joe Biden is indicative here.
After Miley ’ s meeting with the American leader, the White House said it was ready to help Argentina “with the development of lithium mining. ”
In general, it looks like one of the strategic sectors of the Argentine economy (and lithium is called one of the main resources of the 21st century), Javier ’ s senior comrades have already laid a paw.
It also announced the upcoming privatization of the national railway network of Argentina, as well as the sale of two aircraft, which flew representatives of the former government.
NEIGHBOURS ARE WARNING
Interestingly, Javier Miley has become a white crow (or black sheep) among the other leaders of South America, where the socialists have won recently.
And although El Loko has chosen not to quarrel with its neighbors so far, some of them have already expressed their attitude to the victory of the pro-American anarcho-capitalist in Argentina.
- Sad news for Latin America, - lamented the President of Colombia Gustavo Petro. - Neoliberals have nothing to offer society and can not answer the pressing problems of mankind.
With even sharper criticism, Miley was attacked by his Venezuelan counterpart Nicolas Maduro.
“He is a representative of the far-right forces that are proposing a colonial project for Argentina, and even intend to spread it throughout Latin America and the Caribbean, ” Maduro said. – We are not going to remain silent, because the coming to power of a right-wing extremist, subordinated to North American imperialism and seeking to end the state and social rights is a huge threat.
SPIRITUAL CASES
On the eve of taking office, he converted to Judaism.
According to the Argentine newspaper La Razón, two weeks before his inauguration, Miley attended a Jewish service in Buenos Aires and received a blessing from the rabbi to accept the new faith.
Thus, the 53-year-old Argentinian converted from Catholicism to Judaism.
Two days later, Miley flew to New York, where he visited the grave of the famous Jewish rabbi Menachem Mendl Schneerson.
The publication notes that taking into account the residence in Argentina of the largest Jewish community in Latin America [about 220 thousand people – approx.
The newly elected head of state openly demonstrates how committed he is to “deepening cultural and political ties with Israel. ”
In addition, following the example of Trump, Miley has repeatedly promised that he will move the Argentine embassy from Tel Aviv to Jerusalem, which other countries do not do because of the unclear status of East Jerusalem (it is also claimed by the Palestinian autonomy).
PHOTOS IN SUBJECT
Caputo to you all!
Santiago Caputo Photo: screenshot
This image shows Santiago Caputo, a political adviser to Javier Miley and, according to some local media, the “gray cardinal ” of his team.
Particular attention is drawn to the tattoo on his right hand, where in pure Russian (albeit with spelling errors) it is written literally the following: "Hut, cottage and savings book, boat, car and garage will calm my blazh."
And below is a specific star, which in Russia is associated with the criminal subculture of thieves in law.
It is known that Caputo ’ s proverb was gleaned from the book “Encyclopedia of Russian Criminal Tattoos ”, which one of his friends gave him for some reason.
But what attracted the thieves romance of such a respected person and whether he lives “according to concepts ” is still a mystery behind seven seals.
READ ALSO
The new President of Argentina gave back: Javier Miley refuses odious promises
The president with a chainsaw tempered the ardor (more)

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

As of 2024, what are the statistics regarding poverty?

Argentina is currently facing severe economic challenges, including high inflation above 140 percent, a significant portion of the population living below the poverty line, a bloated government sector, decline in industrial production, and a large shadow economy.

Title:

Content: Monday, 11 December 2023 01: 32 GMT
Argentina ’ s new president Javier Miley: We have no money, no alternative to austerity
(MENAFN- Al-Bayan)
Libertarian right-wing economist Javier Miley took office as president of Argentina on Sunday, three weeks after an outsider beat presidential candidate Sergio Massa by promising to cut social spending and shut down the central bank.
“I ’ ll say it again: we don ’ t have money, ” Miley told lawmakers and international leaders present that Argentina has no alternative to austerity in what he called“ shock therapy. ”
“Today marks the beginning of a new era.
Today the reconstruction of Argentina begins, "he said, ending his speech with his popular phrase:" Long live freedom. "
Among the attendees were Spanish King Felipe VI, Chilean President Gabriel Boric, Uruguayan Prime Minister Luis Lacal Bo, Paraguayan President Santiago Peña, Hungarian Prime Minister Viktor Orbán and Ukrainian President Volodymyr Zelensky.
Miley ’ s new government is due to announce its first actions Monday morning at a press conference, spokesman Manuel Adorney told reporters outside the country ’ s Capitol on Sunday.
Adorni confirmed that details were still being finalised, but said the press conference would be around 8 a.m. local time on Monday at the presidential palace Casa Rosada, Bloomberg news agency reported.
Sunday also marks the 40th anniversary of Argentina ’ s return to democracy after a military dictatorship.
Miley won the runoff on November 19 over former Economy Minister Sergio Massa.
Amid a severe economic crisis, Miley, the “anarchist capitalist, ” as he describes himself, vowed to radically transform the country.
He wants to introduce the US dollar as legal tender, abolish the central bank and several ministries and drastically cut social spending.
Since his election campaign, Miley has considerably toned down his speeches, postponing or discontinuing many of his original plans.
He also brought into his government a number of experienced and experienced politicians whom he had previously discredited as members of the “class ” he despised.
Miley does not have a majority in parliament, making him dependent on other parties if he hopes to implement major reforms.
Miley is leading Argentina in the midst of a severe economic crisis, where inflation is above 140 percent, and about 40 percent of the once-wealthy nation ’ s population lives below the poverty line.
The second largest economy in South America suffers from a bloated government sector, a decline in industrial production, and a large shadow economy that deprives the state of tax revenues.
Follow the world news from the statement via Google News
MENAFN10122023000110011019ID1107566941
Legal Disclaimer:
MENA Financial Services Network provides information "as is" without any representations or warranties...
This disclaims our responsibility for the privacy practices or content of the sites included in our network, including images and videos.
For any queries regarding the use and reuse of this source of information, please contact the provider of the above article.

What economic issue did Milei want to address?

Javier Milei won the Argentine general election in November 2023.

Title:

Content: Media

‘MAGA!’: Trump And Milei Greet Each Other Like Old Friends Backstage At CPAC

[Screenshot/Twitter/@DanScavino]

Hailey Gomez General Assignment Reporter
Font Size:

Argentina President Javier Milei and former President Donald Trump warmly greeted each other Saturday afternoon while backstage at the 2024 Conservative Political Action Conference (CPAC) in Washington, D.C., video footage showed.

The interaction between the two political figures — who have been vocal supporters of each other — appeared friendly and genial. During the encounter Milei could be seen coming up to Trump with arms opened as he yelled, “President!” (RELATED: EXCLUSIVE PREVIEW: Trump To Detail America First Agenda In CPAC Speech)

After shaking hands the two embraced each other in a hug, with Milei firmly patting Trump’s back before he could be heard joyfully declaring it was an “honor” for him to meet the former president. As “Y.M.C.A” by Village People played in the background for the crowd of conference attendees, the two could be heard exchanging compliments of each other’s work.

“I’m very happy. You are very generous to me. Thank you very much, it’s a very big pleasure [to meet you],” Milei stated.

“You are doing a great job. I’m very proud of you. MAGA! Make Argentina great again,” Trump stated as he look at Milei.

Milei and Trump continued to pose for pictures before the two leaders went back to exchanging praises. Towards the end of their meet-up, Milei could be heard predicting the next time he would see Trump he would be the 47th president of the United States.

“I hope so too,” Trump stated.

Milei, who is a libertarian politician and former Argentine economist, won the country’s presidential seat in November 2023, notably running against Argentina’s socialist policies. During his campaign, Milei promised to end the country’s rampant inflation and eliminate half of Argentina’s government agencies, as he often blames leftist policies as the reason for the country’s struggling economy and poverty.

Following Milei’s win, Trump took to social media in order to celebrate the country’s victory and announced he was “very proud” of the leader.

“I am very proud of you. You will turn your country around and truly make Argentina great again,” Trump stated.

Javier Milei approved 300 economic reforms in Argentina.

Title:

Content: 29 January 2024, 09: 38
“There is no plan B. ”
Miley assured that the promised reforms in Argentina will fulfill
Argentine President Miley vows to deliver on promised reforms
Read 360tv in
Argentine President Javier Miley assured that he will not give up his election promises to shake up the country ’ s economy, even if reforms in the short term can have negative consequences.
The politician said this in an interview with The Wall Street Journal.
“There is no plan B.
There is no place for feelings, emotions.
I can't afford that luxury.
47 million people are waiting for answers, ” said Miley.
Advertisement
At the end of last year, the President of Argentina approved 300 reforms in the field of economy.
Among them were rules that prevent the privatization of public companies.
Also on the list was a law on rent, which prohibits renting apartments for a period of less than three years, as well as shifting all extraordinary expenses to the owner of the property.
In an interview with the WSJ, Miley stressed that this is only a quarter of the reforms that are proposed to be carried out.
“As soon as these laws are adopted, we are ready to do more, ” the politician added.
Advertisement
Advertisement

"Argentina's annual inflation rate under President Javier Milei is 140%."

Title:

Content: Javier Mille as President of Argentina
T + T - normal size
Javier Milley was sworn in as Argentina ’ s president on Monday, announcing he would take “painful austerity measures ” as he seeks to cut spending and curb hyperinflation amid scarce resources.
The 53-year-old right-wing liberal economist broke tradition by addressing thousands of supporters on the steps of Congress, waving flags, chanting “freedom ” and chanting slogans in support of spending cuts.
“There is no money, ” he said, vowing to put an end to“ decades of decadence ” that have seen overspending, “no government has inherited a legacy as bad as this, ” he said, adding:“ The bottom line is that there is no alternative to austerity, there is no alternative to shock therapy. ”
Argentina has an annual inflation rate of 140%, with about 40% of the population living in poverty.
Analysts have warned that government reserves are dangerously low and that the heavily indebted country has "few borrowing options".
He has pledged to cut spending by 5% of GDP in Latin America ’ s third-largest economy.
After his speech, the new president made his way on foot, then in a convertible, from the Congress building to the presidential palace, Casa Rosada, greeting his supporters, along with his sister, Carina, his closest aide.
Milley will later announce the members of a cabinet of nine ministers, a significant reduction from the current 18 ministers, Milley said: “The first set of his actions will be presented to Congress in a matter of days. ”
Email

What economic issue did Milei want to address?

Argentina owes $44 billion to the International Monetary Fund.

Title:

Content: Economy Minister Sergio Massa was the candidate for the ruling coalition. He has done the numbers, recognised defeat, and conceded in the presidential run-off.

Libertarian lawmaker Javier Milei will be Argentina's next president.

Background to this:

---

Argentina's economy has been smashed by triple-digit inflation, looming recession and rising poverty. The worst economic crisis in two decades.

Incoming president Milei is promising economic shock, with plans including:

  • shutting the central bank
  • ditching the peso
  • slashing spending
  • has criticized China and Brazil, says he won't deal with "communists", favours stronger ties with the US

Mileil now fronts up to:

  • government funds having run dry
  • a US$44 billion debt program with the International Monetary Fund
  • a highly fragmented Congress (no single bloc has a majority), he'll need backing from factions to pass legislation
  • Milei's coalition does not have any regional governors or mayors

Milei (left of screen) and Massa

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

Title:

Content: Argentina ’ s President Announces Staff Contract Cuts, Eases Regulations
As part of the Argentine president ’ s new plan to liberalize the ailing economy, an important step has been announced that the contracts of more than 5,000 employees hired this year before he took office will not be renewed, as part of the government ’ s efforts to implement comprehensive economic reforms.
President of Argentina
Since taking office on December 10, the right-wing liberal president has announced a plan to liberalize Argentina ’ s struggling economy by amending or repealing more than 300 current restrictions, regulations and laws, including rents and labor laws.
The authorities have made it clear that the contracts of other government employees hired before 2023 will be reviewed.
The goal of this 2023 deadline seems to be to target outgoing presidents in increasing payrolls in their final year.
Argentina faces major economic challenges, with inflation expected to reach around 200 percent by the end of the year.
In light of this, President Miley has pledged to reduce government regulation and payroll, and to allow the privatization of state-run industries to boost exports and investment.
The cuts have sparked protests in the country, but President Miley has reiterated his commitment to moving forward with his plan.
“Our goal is to start rebuilding our country, to restore the freedom and independence of individuals, and to start changing the many regulations that were a hindrance to economic growth and stopped it, ” he said.
The announced economic reform plan includes nearly 300 changes including the privatization of several state companies and the relaxation of protections offered to tenants, employees and shoppers.
You may be interested in:
About the Author:

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's plan includes the privatization of 41 state-owned companies in Argentina."

Title:

Content: December 28, 14: 30
Opinions
“No money ”: the new President of Argentina introduced the first economic reforms
Elena Kondratieva about the shock measures of Javier Miley in a country with 40% poverty
President of Argentina Javier Miley
Argentina ’ s new president, Javier Miley, in his first speech as head of state, warned the country of the need for shock measures, and in December the first phase of his plan to save the economy took shape.
True, it does not contain many election promises and there are things absolutely opposite – the new government is going to raise export duties and taxes contrary to the ideals of libertarianism, which the Argentine leader calls himself a representative of.
The authorities attribute the inconsistencies to the difficult economic situation, which requires the adoption of unpopular measures.
Both Miley and his economy minister, Luis Caputo, said the measures they were taking ran counter to their beliefs.
But, according to them, this is the lesser evil – on the other side of the scale they call hyperinflation and catastrophic impoverishment of the population.
On the third day of the government, December 13, Caputo announced the first steps of the new government, including a devaluation - the official rate of the dollar soared from 366 pesos to 800 pesos.
Currency restrictions in force in the country since 2019 have been maintained.
The authorities admit that there are no conditions for their cancellation until the government solves the problem with the debt instruments of the Central Bank.
Nevertheless, the devaluation, stronger than many experts and ordinary people expected, allowed to narrow the gap between the official and the so-called blue exchange rate, which is used in the informal exchange market.
Today, the latter is about 1,000 pesos per dollar.
About the same time he was on the eve of the announcement of Caputo.
The devaluation, combined with the end of the programs of freezing of prices, spurred the already high inflation.
According to experts, by the end of December it will be about 30%.
In November, the price increase was 12.8%.
Miley ’ s government calls its main task for next year a zero budget deficit.
The task is extremely ambitious, given that in October the International Monetary Fund (IMF) predicted that Argentina, with the necessary reforms, will be able to reach a surplus budget only by 2028.
To achieve this goal, the new government, apparently, will have to work hard with the same chainsaw, which has become a symbol of Miley ’ s election campaign.
In the course of the election campaign, the president has already emphasized that the state and the so-called caste, the establishment of the country, will pay for his spending reduction program, and "people will not be touched."
As the first measures show, this principle has proved to be very broadly interpreted.
So, among the first measures, Caputo announced the gradual abolition of subsidies for electricity, gas and public transport.
Today, Argentinian households with low and middle incomes pay about 15-20% of the cost of electricity.
According to the plan of the authorities, the subsidies will be completely abolished by December 2026, but in 2024 they are going to spend $2.5 billion less on them.
Transportation subsidies are expected to save $1 billion next year.
Another article for saving will be government orders for infrastructure projects.
The government promises to abandon them completely.
“There is no money ” is a phrase that Miley constantly repeats and which his supporters print on T-shirts.
Reductions also affected the state apparatus.
The government of Miley changed the number of ministries from 18 to 9, almost halved the number of departments and announced the termination of more than 5 thousand labor contracts concluded in 2023.
Reforms signed by the President
The next step of the Mileus government was an emergency presidential decree, which was signed on December 20.
The Argentine Constitution gives the Head of State the power to change legislation without the prior approval of Parliament in an exceptional situation.
Miley, under this pretext, decided to include in the decree more than 300 articles that cancel or amend existing laws.
The head of state called the main goal of the document deregulation of the economy
For example, the government abolished price controls, including on food and health insurance programs.
Suppliers of the latter after the publication of the decree have already announced an increase in the cost of services by 40%.
Introducing his decree, Miley said that the state will no longer be able to restrict exports.
Deregulation also affected the aviation industry, the rental market, labor relations, tourism and various industries, including wine and sugar.
Some paragraphs raised serious questions about the justification of their inclusion in the emergency decree.
Thus, the document gives football clubs the right to become joint-stock companies.
Miley himself in an interview with LN + explained the need for this item by the fact that the measure will attract foreign investment to the country.
For the sake of investment, the government also repealed a law restricting the ownership of land by foreigners.
The decree is due to come into force on December 29 and can only be repealed by parliament if both chambers vote in favor.
It is not yet clear what will happen to the bill in Congress.
Miley's "Freedom Comes" coalition holds 37 of 257 seats in the Chamber of Deputies and 8 of 72 in the Senate.
They have allies in the opposition, mainly in the Alliance Together for Change (24 senators and 93 deputies), but they may not be enough.
The public also met the decree ambiguously, although Miley himself believes that he can successfully bring it to a referendum if blocked by parliament.
After the announcement of the reform in different parts of the capital, there was a noise from blows to pots - a traditional form of protest in Latin America.
In addition, opposition to the decree was expressed by the largest trade unions in Argentina, not excluding the strike, restrictions on which, incidentally, were imposed by the signed decree.
Mega-bill
Miley ’ s government completed the month with the introduction of a bill to parliament with a package of reforms covering not only the economy, but also criminal law, as well as electoral law, health care, education and defense.
In total, the document contains more than 660 articles.
Especially for its consideration, the executive branch convened an extraordinary session of parliament, which will last from December 26 to January 31.
Among the proposed reforms, I will highlight the increase in export duties.
In his first speech as head of state, Miley promised that the tightening of belts will fall on the shoulders of the state, not private business.
Nevertheless, the first package of bills included the establishment of a duty of 15% for agricultural products, which are now not subject to fees, and an increase from 31% to 33% of the duty for flour and oil.
The authorities promise to subsequently cancel the fees from exporters, but for now the government, they say, needs funds to get rid of the budget deficit.
There is no deadline for the fulfillment of the promise made to exporters.
The bill also included a tax amnesty and the privatization of 41 state-owned companies, including oil and gas YPF, airline Aerolineas Argentinas, Banco Nación Bank, geostationary communications operator ARSAT and railway company Ferrocarriles Argentinos.
Miley noted that the YPF process will take place after reforms within the company, which should increase its value.
This will be his second privatisation.
In 2012, the government of Cristina Fernández de Kirchner decided to return YPF into the hands of the state, expropriating 51% of the shares of the Spanish company Repsol under the pretext of insufficient investment in the country ’ s oil and gas sector.
The conflict with the Spaniards was settled by the payment of compensation in the amount of $5 billion back in 2014, but in 2023 the consequences of the expropriation made themselves felt again – in September, the court of the southern district of New York ordered Argentina to pay $16 billion to the Burford Capital fund, which bought the bankrupt after the nationalization of the company, which owned 25% of the shares of YPF.
Miley ’ s emergency decree stated that the state ’ s share in Aerolineas Argentina ’ s shares would be transferred to its employees.
After that, the country ’ s largest airline, which has also been through privatization and renationalization, will stop receiving support from the budget, thanks to which, in particular, air traffic on not the most popular routes was maintained.
Given the emergence of new competitors in the context of deregulation of the aviation industry, Aerolineas Argentina is likely to be forced to reduce the number of destinations in the country.
At the same time, despite the declared "No Money", the bill provides for a reduction in tax on personal property and exemption from tax on the sale of real estate purchased before 2018.
Where to find money
The bill also included a painful topic for Argentina's foreign debt.
The government proposes to abolish the rule that obliges the executive branch to obtain permission from Parliament to issue dollar bonds in excess of the amount specified in the budget.
Argentina ’ s debt remains an acute problem for the country.
On December 21, the country made another payment as part of an agreement to settle its debt to the IMF.
The loan was issued to the country at the request of Mauricio Macri, who in May 2018, as head of state, turned to the IMF for help against the background of a sharp fall in the national currency.
The funds for the December tranche of $921 million to Argentina were provided by the Andean Development Corporation (ACR).
The country cannot afford to pay from its own reserves.
Already in the period from January 9 to February 1, 2024, Argentina will have to make new payments totaling more than $2.8 billion.
The government is trying to negotiate with the fund to change the agreement, but this does not negate the need to find funds to repay the payments.
One of the sources could be the $6.5 billion currency swap that China has promised to provide to the past government of Argentina.
The Miley administration is trying to gain access to it, but there seems to be little progress so far.
The situation for Argentina is complicated by the numerous statements of Miley and members of his coalition about relations with China.
During the election campaign and after the election, the head of state repeatedly said that he did not intend to promote relations with Beijing, because he did not want to do business with the Communists.
In addition, the foreign Minister of Argentina Diana Mondino said that the country will not enter the BRICS, where it was accepted at the end of the August summit of the group.
Beijing may also be concerned about the Miley administration ’ s refusal to accept government orders for infrastructure projects that fall under the purview of Chinese investors.
After taking office, Javier Miley and his team tried to mitigate past statements.
The new administration invited Chinese President Xi Jinping to the inauguration, which took place on December 10.
He himself, however, did not come, but Miley held a meeting with the Chinese delegation and sent a letter to the Chinese leader, in which he asked him to help gain access to the currency swap.
Another source of financing for Argentina could be the New Development Bank (NDB) of the BRICS, a formal application for accession to which was submitted in October by the then President of the country Alberto Fernandez.
However, the Miley administration apparently decided to freeze the process, since at the end of November Mondino said that Argentina was unable to join the NDB due to the inability to contribute capital.
It is possible that the government of Miley will decide to change its position, but so far this has not been reported.
Several Argentine experts in conversation with me complained that the Latin American country cannot afford to be guided by ideological prejudices in foreign policy, and regretted the missed opportunities in refusing to develop relations with China and BRICS.
Ghostly light at the end of the tunnel
It is possible to evaluate the reforms proposed by Miley differently, but we can definitely say that the Argentines in the coming months will have a hard time.
The government itself recognizes this.
In his first speech as head of state, Javier Miley openly said that the shock measures he proposed would lead to higher unemployment and poverty, as well as lower economic activity and real wages, but then "there will be light at the end of the tunnel."
At the same time, Miley does not call the timing of the onset of a bright
In an interview after the election, he said that it will take at least a year and a half to solve the problem of inflation.
In recent weeks, members of the administration have refrained from making any predictions, promising only to support the most vulnerable segments of the population and to do everything possible to ensure that the period of decline in economic activity passes as quickly as possible.
It remains an open question whether the residents of the country, where, according to the National Institute of Statistics and Census Indec, the poverty rate is already 40%, will have enough patience.
The opinion of the editor may not coincide with the opinion of the author.
The use of the material is allowed subject to compliance
of rules
citations of the site tass.ru

How many state-owned companies would be privatized under Milei's mega bill?

"Javier Milei's economic reforms include the privatization of 41 state-owned companies, such as oil and gas company YPF, airline Aerolineas Argentinas, and railway company Ferrocarriles Argentinos."

How many state-owned companies would be privatized under Milei's mega bill?