Javier Milei, inaugurated on December 10, 2023, is Argentina’s first libertarian president and campaigned as an “anarcho‑capitalist,” pledging radical state shrinkage, abolition of the central bank, and dollarization.

He won the presidency with 56% in a runoff and immediately set out to privatize state‑owned companies and reduce the number of ministries, positioning his agenda as a break with “socialist mismanagement.”.

His government launched an 83‑page Necessity and Urgency Decree to repeal roughly 300 laws and regulations, paired with an omnibus bill of 664 articles granting extensive executive powers until December 31, 2025.

The decree and bill enable a declared state of public emergency, rapid economic deregulation, elimination of rent controls, and plans to privatize 41 state‑owned enterprises.

Milei has also threatened a non‑binding referendum if opposition parties block his program, while more than 100 changes to the bill narrowed emergency powers during negotiations.

On the economic front, Milei’s core agenda centers on sweeping deregulation and privatization, drastic fiscal austerity, subsidy cuts, and market liberalization to boost exports and investment.

He devalued the peso by over 50%, scrapped price controls, and moved to slash energy and transport subsidies, which led to surging electricity and gas bills.

The administration aims to cut public spending by around 15% and privatize state companies, positioning dollarization and abolition of the central bank as long‑term goals.

Milei signed a decree covering more than 300 reforms—including privatization, export liberalization, and a refusal to regulate prices—days after taking office.

The government has also lifted export restrictions, liberalized the internet market, and eased rent and labor rules by extending probation periods and adjusting dismissal compensation in favor of firms.

Labor and state restructuring are central to the plan, with the government terminating about 50,000 civil service contracts and signaling plans to dismiss up to 70,000 civil servants.

He vowed to abolish public works over corruption concerns and has halted or canceled large swaths of such projects.

Additional downsizing includes reducing ministries from 18 to 9 to streamline the state.

Monetary reform is a signature pillar, with Milei repeatedly advocating eliminating the central bank and adopting the US dollar.

Dollarization would require congressional approval and an estimated $35–$50 billion in reserves to execute, with observers warning of exposure to US monetary policy shocks.

Amid implementation challenges, some reporting suggests the administration could slow or shelve the dollarization push even as it continues pursuing currency competition and anti‑money‑printing commitments.

In the short term, the government devalued the official rate by roughly 54% and emphasized unifying exchange rates to curb distortions.

Legislatively, Milei governs with a minority in both chambers and has relied on decrees and omnibus legislation while facing contentious debate in Congress.

After a marathon process, the lower house granted general approval to the reform package, and the Senate later approved key state overhaul and tax bills with Vice President Victoria Villarruel casting the deciding vote in a 36–36 tie.

The approved package delegates broad powers to the presidency in areas such as energy, pensions, and security, authorizes privatizations, and includes investor incentives and a tax amnesty for undeclared assets.

A separate reform chapter allows a one‑year economic emergency, empowers the executive to dissolve federal agencies, weakens some labor protections, and targets the privatization of Aerolíneas Argentinas.

The administration’s political approach has included stringent public order measures as massive protests erupted nationwide against austerity and privatization.

Federal forces were authorized to disperse roadblocks without a judicial order, the government used video evidence to identify protesters, and officials at times labeled protest groups “terrorists.”.

Major demonstrations around Congress saw clashes, with dozens of injuries and arrests as unions and left‑wing parties mobilized against pension cuts, labor changes, and the emergency delegation of powers.

Macroeconomic conditions remain severe, with annual inflation surpassing 200% and approaching 300% as the economy slid into recession and poverty exceeded 40%.

December 2023 inflation was 25.5% month‑on‑month, pushing 2023 inflation to 211.4%, while the annual rate later slowed to 271% in June 2024.

The removal of energy subsidies and price control programs has driven utility bills sharply higher, with the cost of living surging nearly 80% in the first five months of 2024.

Industrial production has fallen, unemployment has risen, and over 50,000 jobs were lost amid cuts and layoffs, with child poverty projected to reach 70% in 2024.

Despite the social strain, the government posted its first quarterly fiscal surplus since 2008 at 0.2% of GDP, reflecting deep cuts in transfers to provinces (down 75%) and a 90% halt in public works.

Argentina also reported two consecutive monthly fiscal surpluses early in the adjustment, signaling the administration’s drive toward a balanced budget.

The International Monetary Fund remains pivotal, with Argentina owing about $44 billion under an existing program as the Fund supports tight monetary and exchange‑rate policies while warning of tough months ahead.

The IMF approved a $4.7 billion disbursement and expects contraction in 2024, while praising reform momentum and releasing previously frozen tranches, though it has held back on a new deal.

Analysts and officials note that IMF involvement shapes Argentina’s policy space, raising sovereignty concerns even as it provides financing and credibility for the adjustment.

Regulatory changes are wide‑ranging, touching aviation, healthcare, pharmaceuticals, customs, housing, and tourism, with a new law limiting large‑scale regulatory measures in key sectors.

Sectoral reforms extend to the oil and gas market and include plans to privatize major firms such as YPF, aiming to boost exports and private investment.

Environmental protections have been weakened in the reform drafts, signaling a deregulatory thrust beyond purely economic domains.

Human capital and science policy have also come under pressure, including proposals to cut or shutter agencies and privatize health and environment sectors, which the scientific community warns could spur a brain drain.

Critics, including more than 100 international economists, have challenged the radical pace and scope of changes and denounced repression of protests.

Key indicators to assess the reform program include inflation, poverty, fiscal balance, spending, subsidies, currency value, reserves, exchange rate gaps, investment, bond prices, unemployment, GDP growth, and export performance.

Milei’s team highlights fiscal surplus targets, exchange rate unification, and an end to money printing, with markets reacting to bond moves and reserve accumulation as signals of credibility.

Forecasts anticipate a sharp 2024 contraction followed by potential recovery, with one projection of a 2.8% decline this year and prospects for a rebound if stabilization holds.

Risks are significant: international experience shows privatization and deregulation can exacerbate inequality, hollow out the middle class, and produce oligopolies without robust competition policy and social safeguards.

Governance capacity, clear goals, and targeted palliatives are critical to mitigate job losses and affordability shocks during transitions of this magnitude.

In sum, Milei’s libertarian program—anchored in deregulation, privatization, fiscal shock therapy, and prospective dollarization—has begun to restructure Argentina’s state and economy while intensifying social conflict and testing institutional checks amid extraordinary executive powers.

Javier Milei, inaugurated on December 10, 2023, is Argentina’s first libertarian president and campaigned as an “anarcho‑capitalist,” pledging radical state shrinkage, abolition of the central bank, and dollarization.

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.

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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

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He won the presidency with 56% in a runoff and immediately set out to privatize state‑owned companies and reduce the number of ministries, positioning his agenda as a break with “socialist mismanagement.”.

His government launched an 83‑page Necessity and Urgency Decree to repeal roughly 300 laws and regulations, paired with an omnibus bill of 664 articles granting extensive executive powers until December 31, 2025.

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).

The decree and bill enable a declared state of public emergency, rapid economic deregulation, elimination of rent controls, and plans to privatize 41 state‑owned enterprises.

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

How will Milei's reforms impact workers?

What industries were affected by Milei's deregulations?

Milei has also threatened a non‑binding referendum if opposition parties block his program, while more than 100 changes to the bill narrowed emergency powers during negotiations.

Who has opposed Milei's proposed layoff order?

On the economic front, Milei’s core agenda centers on sweeping deregulation and privatization, drastic fiscal austerity, subsidy cuts, and market liberalization to boost exports and investment.

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?

He devalued the peso by over 50%, scrapped price controls, and moved to slash energy and transport subsidies, which led to surging electricity and gas bills.

Title:

Content: Argentina's inflation edges up in June, breaking monthslong streak in blow to President Milei

A closely watched measure of inflation in Argentina remained stronger than the libertarian government of President Javier Milei would have hoped

ByISABEL DEBRE Associated Press
July 12, 2024, 5:29 PM

BUENOS AIRES, Argentina -- A closely watched measure of inflation in Argentina remained stronger than the libertarian government of President Javier Milei would have hoped on Friday, as the official statistics agency reported prices edging up in June and breaking a monthslong streak of declines.

Argentina's consumer price index rose 4.6% in June, slightly up from the rate of 4.2% in May, ending a five-month trend of cooling inflation that experts had attributed to a deepening recession brought about by Milei's brutal austerity scheme. President Milei has touted the falling prices over recent months as a key victory in his fight against Argentina’s worst economic crisis in over two decades.

When Milei became president last December, monthly inflation was peaking at 25%. But the price drop since hasn't offered much relief to ordinary Argentines as Milei presses on with a harsh austerity program that involves slashing generous energy subsidies, scrapping price controls and devaluing the Argentine peso.

Friday’s government report showed Argentina’s annual inflation slowing a bit to just over 271% — still among the highest rates in the world.

Surging electricity and gas prices accounted for most of June's inflationary spike, the statistics agency said. Argentines have reported eye-watering utility bills after years of paying highly subsidized rates under left-leaning governments.

In stark contrast to Milei's program, those past Peronist administrations fixed prices and printed billions of dollars’ worth of pesos to fund a large deficit — fueling chronically high inflation.

Under Milei, Argentina's energy ministry last month reported that low-income households that previously paid just 5% of the real cost of electricity have started paying a third of it while middle-income households now cover at least half following Milei's removal of subsidies. The government has also capped electricity consumption to qualify for subsidies, squeezing families as a cold front sweeps Argentina during the Southern Hemisphere’s winter.

The country's cost of living has surged nearly 80% in the first five months of 2024 compared to the same period last year, the report also showed. Prices in Buenos Aires shops and restaurants have reached levels comparable to the U.S. even as public salaries and pensions have been held down.

In further worrisome news for Milei, the peso on Friday fell to another record low against the dollar, hitting 1,500 on the black market after months of stability.

The steep fall in Argentina’s currency means the gap between the black market rate and the official exchange rate, currently 919 pesos to the dollar, has widened to over 50%. That complicates Milei's goal of eventually lifting Argentina's strict currency controls to restore investor confidence.

Milei's government wants the International Monetary Fund — to which Argentina already owes a staggering $44 billion — to step in with a new loan to support his plans to remove capital controls.

But as uncertainty remains over the future of Milei's economic program, the IMF dampened expectations of a new deal on Thursday.

“The staff will engage in discussions on a possible new arrangement as we would with any IMF member," the fund's spokesperson, Julie Kozack, told reporters Thursday. "At this stage, there is no specific timeline for those discussions.”

cut transport and energy subsidies
Devalued the peso

The administration aims to cut public spending by around 15% and privatize state companies, positioning dollarization and abolition of the central bank as long‑term goals.

Title:

Content: International News

Who Is Javier Milei?

Alex Paszkowicz

Brandishing a chainsaw throughout his electoral campaign, the libertarian and self-proclaimed ‘anarcho-capitalist’ Javier Milei won the Argentine general election on 19th November 2023. Milei’s policies and personality cause controversy, so who is the television pundit turned politician?

Beating his rival Sergio Massa with 14.4 million votes to Massa’s 11.5 million, Milei will begin his 4-year mandate starting on 10th of December. After winning a majority of just 4 out of the twenty-four Argentine provinces, Massa conceded defeat at the Unión por la Patria‘s campaign house before the results were officially published.

The centre-left finance minister admits that “obviously these are not the results we hoped for, and I have spoken to Javier Milei to congratulate him because he’s the president that the majority of Argentines have chosen for the next four years”.

Massa has also hinted that he will retire from front-line politics.

The Peronist political movement has been pushed out of government

Milei’s victory has dismantled the left-wing political establishment, even ending Argentina’s 2-party political system. Created in the 1940s by Juan and Eva Perón, the Peronist political movement has been pushed out of government, despite ruling for sixteen out of the last twenty years. His campaign fell short despite Massa continuously appealing to voters’ fears surrounding Milei’s volatile character and risky economic policies.

Compared with Massa, and judging by the election result, Milei is seen as the lesser of two evils in Argentina, as the previous Peronist government could not provide economic stability.

The third-largest Latin American economy has almost reached inflation of 150%, and 40% of Argentina’s 45 million population is in poverty. Furthermore, the International Monetary Fund has rescued the Argentine state twenty-two times, with the most recent loan of $44 billion in 2018.

Milei used his platform […] to circulate conspiracy theories

Economist Sergio Armella believes, “it is indisputable that a swift change from the failed economic policies of the past is imperative. The accumulated economic imbalances have grown too large and must be addressed promptly”.

Nicknamed ‘El Loco’ and before running for president, Milei used his platform on television to circulate conspiracy theories around election fraud and Argentina’s economic problems.

Combined with his extravagant personality and viral TikTok videos, he targeted a younger audience who had grown up through economic hardship and strict Coronavirus lockdowns. Milei’s camp is also known to question the national consensus, which has lasted four decades, over the crimes of its 1976 to 1983 dictatorship, which killed around 30,000 people.

“The reconstruction of Argentina begins” [Milei]

The man with five cloned dogs, each named after a different right-wing economist, claims that with his new mandate, ‘“the reconstruction of Argentina begins”. Calling the result a “miracle” in his victory speech, he says that the result “marks the end of decadence in Argentina”.

He believes Argentina will return to being a “global power”, while alluding to those conspiracies he supported in his past where previous governments, “shared the state amonpoliticians and their friends”.

Although he abandoned his chainsaw to improve his public image, the symbol refers to his promise to decrease inflation by cutting public spending by 15% and privatising state companies, while reducing fuel and electricity subsidies.

Milei wants to abolish the central bank and adopt the US dollar as its official currency, to stop the country from printing more money like previous governments. If the dollar’s value continues to devalue, then inflation could rise with a risk of hyperinflation, which could return after three decades.

Aims to sever ties with China

Milei has no interest in joining the BRICS alliance, and aims to sever ties with China to help move towards privatising state-led companies like the oil industry.

According to economist Elizabeth Bacigalupo, this includes an estimated $10 billion in annual savings on energy imports through a new gas pipeline in Vaca Muerta. Also, this year, the drought in Argentina reduced its agricultural exports from $39 billion in 2022 to $23 billion. But with next year’s predictions, exports could be up to $40 billion.

The problem Milei faces is how fragmented the Argentine Congress is. The coalition he formed with the conservatives after the first round only has 10% of the Senate and 15% of the lower house, meaning he will have to negotiate with his political rivals to push through his complicated reforms.

Any delay in economic progress could lead to more inflation and social unrest.

Despite insults hurled at Brazil’s President, Luiz Inácio Lula da Silva, by Milel throughout his campaign, he wished him support on social media, saying “democracy is the voice of the people and must always be respected”.

Donald Trump believes Milei will “Make Argentina Great Again”

Former US president Donald Trump believes Milei will ‘Make Argentina Great Again’. Businessman Elon Musk expressed a similar sentiment and posted, ‘prosperity is ahead for Argentina’.

Reactions from Milei supporters are varied, with voters desperate for change. A supporter named Michelle Chelsea in Buenos Aires says, “economic policies have led us to this situation. Today, more than half of the population has voted for a different option, and I hope that things will change a lot”.

A Food Service Worker, Alejandro Bravo, is hopeful for the future. “It’s an incredible joy. It’s the end of a never-ending decline, so to corrupt politicians, we say, “get lost”‘.

“We’ve had enough corruption, enough insecurity, enough inflation, enough poverty. We were very tired, we wanted something new, we wanted to see new faces”, states supporter Barbara Rubin.

Alex Paszkowicz

Featured image courtesy of Angelica Reyes via Unsplash. Image license found here. No changes were made to this image.

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International NewsNews

criticism of government spending
closing the central bank
dollarizing the Argentinian currency

Milei signed a decree covering more than 300 reforms—including privatization, export liberalization, and a refusal to regulate prices—days after taking office.

Title:

Content: Log in to the mail
Argentina ’ s president says he will lay off 70,000 civil servants
Argentine President Javier Miley plans to dismiss about 70 thousand civil servants, contracts with some of them have already been terminated.
This is reported by La Politica Online.
Miley noted that contracts with 50 thousand civil servants have already been terminated.
“Please note that now the number of contracts is reduced and 70 thousand of them will be canceled, ” he said.
Miley also noted that he was “proud ” of the abolition of public works, as they are“ a hotbed of corruption. ”
However, the Secretary General of the Association of state workers Rodolfo Aguiar said that the head of state does not have the right to dismiss 70 thousand state employees, writes Pagina 12.
“Today, protests have multiplied across the country, and conflicts in the state will continue to escalate.
We are going to continue the fight to prevent any illegal and unjustified dismissals in the state administration, ” he said.
Miley took office as President of Argentina on December 10, 2023.
During his election campaign, Miley promised to liquidate the country ’ s Central Bank and replace the national currency with the US dollar.
The politician also said that the value of the peso fell below acceptable values, and the Central Bank of Argentina should “blow up ”.
In addition, he criticized the idea of   global warming, advocated the prohibition of abortion and the legalization of trafficking in human organs.
On December 21, 2023, the new head of state signed a decree on more than 300 reforms to liberalize the economy.
Among the measures introduced are privatization, export liberalization, refusal to regulate prices.
It is assumed that the implementation of reforms will allow the country to gain “freedom ”.
Rambler: top news

The government has also lifted export restrictions, liberalized the internet market, and eased rent and labor rules by extending probation periods and adjusting dismissal compensation in favor of firms.

Title:

Content: Global Economic News
Millie's attempts to liberalize Argentina's economy
366 rules changed, including privatization, housing and work
Demonstration in Argentina against the decree of President Javier Milli.
"E.B.A."
Last week, Argentina ’ s libertarian president, Javier Milley, issued a sweeping decree to change or abolish 366 economic rules in a country accustomed to heavy government intervention in the market.
The move is the first of its kind in Argentina ’ s history, as none of its democratically elected presidents has attempted such a massive dismantling of the system.
That ’ s exactly what Milley promised during his election campaign, waving a chainsaw to symbolize his attempt to cut public spending as Argentina struggles with three-figure inflation after decades of fiscal mismanagement.
However, according to Argentine law, Congress still has the power to flood Melli ’ s program.
Change of daily life
Ten days after taking office, and on the eve of the holidays, Milley presented his "necessary and urgent" decree to loosen some of the rules governing the country's economy, where annual inflation has reached 160 percent.
One big change will be the removal of all restrictions between tenant and landlord, such as laws on increasing rents.
In recent years, landlords have increasingly priced their properties in dollars to avoid falling into the rental income trap that has long been overtaken by rising inflation.
This was a nightmare for tenants in a country where access to the dollar was tightly controlled.
Melli ’ s plan also loosened labor laws, increasing the probation period for new employees from three to eight months.
Compensation for Groundless Dismissal Laws have been amended in the interest of companies, and plans are being made to renegotiate labor agreements in force since 1975.
He also lifted export restrictions and said the internet market would be liberalized.
Milley also abandoned rules preventing the privatization of government institutions, already setting his sights on the national airline and the oil company.
He also moved to limit the right to strike enshrined in the constitution.
Purpose of the decree
Milley, a figure whose rise to the country ’ s highest office surprised most observers, blames the interventionist and protectionist policies of previous governments for stifling the economy.
Before the decree was announced, the new government had already devalued the Argentine peso by more than 50 percent and announced massive cuts in generous government subsidies for fuel and transportation starting in January.
“The goal is to begin the process of rebuilding the country, restoring the freedom and independence of individuals and beginning to dismantle the vast amount of systems that have halted and hindered economic growth, ” Milley said.
One protester said: "There may be people with Stockholm syndrome.
They are fascinated by a model that impoverishes them. ”
The opposition, who was recently ousted from the government, criticized Milley for the decree, seeing it as a way to overcome his lack of a majority in Congress.
Miley Libertad Avanza, who is only two years old, has only 40 of the 257 seats in the House of Representatives and seven of the 72 seats in the Senate.
German Martinez, speaker of the parliament of the Peronist coalition, said: "Uniting for the homeland is not the right way.
They sent the reforms as bills.
“Don ’ t be afraid of democratic debate. ”
Constitutional lawyer Emiliano Vitaliani said the country's highest laws state that "in principle laws cannot be amended by decree and the president cannot replace Congress."
Political scientist Lara Guiboro said the resolution "crosses all boundaries and rules out many issues that need political agreements from Congress and the provinces."
Vitalini said the decree could be revoked if it was rejected by both houses of Congress.
Otherwise it will come into force on December 29.
Constitutional lawyer Alejandro Carrillo said in an article in the Lanacion newspaper that "the president has made a very big bet, and his success will depend on his ability to obtain legislative support that is not yet known."
It comes at a time when Argentina is stuck in the grip of an economic crisis with the highest inflation in 30 years.
Cecilia Rojas is searching every store in the vast city of Buenos Aires to find affordable gifts for her children for what is expected to be a bleak Christmas day this year as Argentina faces its worst economic crisis in decades.
Rojas, 47, said: “Before, I used to buy from a well-known toy chain, but now I ’ m looking at smaller stores nearby to find a better price.
Rojas, a psychologist, has two sons, one aged 17 and the other eight.
This year, they will each receive one gift, knowing that they have received many gifts in previous years. ”
Argentina ends the year with the highest inflation rate in the past 30 years, over 160 percent year-on-year.
The 50 percent devaluation of the peso, approved by the government of liberal President Javier Milley on Dec. 12 two days after taking office, has led to a new price spike in a country where more than 40 percent of the population is poor.
Games prices have risen by 110 to 230 percent this year, according to figures from the Argentine Chamber of Gaming Industry.
Thus, shoppers on Christmas Day should be patient and seasoned.
Ogostina Jago, a 23-year-old mother of four, said: "If you walk a little, you can find the same product in different stores at different prices."
"This year, we will buy him a gift thanks to the help we get from grandmothers and fortunately, there are many of them."
The country is also under the brunt of the radical measures of President Javier Mille ’ s new government, which has issued hundreds of decrees to revive the ailing economy.
Milley, who has pledged to cut government spending, also announced deep cuts in subsidies on fuel and the transport sector starting in January.
His government also scrapped a programme to control the prices of some goods introduced by the previous government to try to soften the impact of inflation.
Milley warned that the country was on the brink of hyperinflation and that things would get worse before they began to improve.
Alexandra Mazi, a 49-year-old schoolteacher who took part in a protest against the new measures, said: “They are starving people, using policies that have been applied in the past and have not worked, and all they are doing is impoverishing the working class. ”
Milley ’ s government has forced organizers of its first protest to pay tens of thousands of dollars to cover the cost of deploying security forces to protect it.
Euronews reported that thousands of people took part in a demonstration on Wednesday against Milley ’ s austerity measures and to commemorate the bloody 2001 protests that followed the country ’ s economic collapse.
Government spokesman Manuel Adorney said the cost of the massive deployment of police and riot police was 60 million pesos ($73,000 at the official exchange rate).
“The bill will be sent to social movements ” as they“ bear responsibility for the cost that should not be borne by citizens, ” he said.
Publish it.
More Economic News - Global

How will Milei's reforms impact workers?

Labor and state restructuring are central to the plan, with the government terminating about 50,000 civil service contracts and signaling plans to dismiss up to 70,000 civil servants.

How will Milei's reforms impact workers?

He vowed to abolish public works over corruption concerns and has halted or canceled large swaths of such projects.

Additional downsizing includes reducing ministries from 18 to 9 to streamline the state.

Title:

Content: 【 Printing 】
【 Page 1 Page 2 】
International observation _ "shock therapy" caused prices to rise in Argentina
Related LINKS http: / / www.CRNT.com 2024-01-17 16: 45: 02
BEIJING, Jan. 17 (Xinhua) -- In the more than a month since he took office, Argentine President Emile Millet has introduced a series of “shock therapy ” reforms aimed at saving the economy, with a view to reducing the fiscal deficit and controlling inflation.
Since the introduction of the new policy, prices in Argentina have soared and the quality of life of the population has declined, and opposition parties and trade unions have raised doubts.
In his inauguration speech last December, Millet said Argentina faced a “critical ” economic situation, with high inflation, rising poverty and difficulties in obtaining external credit support.
Argentina needs “shock therapy ” to save the economy.
In the early days of his administration, Argentina will face a period of "stagnation", during which economic data will be worse than before.
The Millet government introduced a series of policies to reduce the deficit, including reducing the number of government departments from 18 to 9, reducing government subsidies for energy and transportation, and halting tenders for new public works.
The new government also devalued the official exchange rate of the Argentine peso from about 400 pesos to about 800 pesos to the US dollar and eased import controls.
In addition to direct fiscal and economic measures, the Milai government is also promoting the repeal and amendment of more than 200 laws to ease government and legal controls on domestic economic sectors and to facilitate import and export trade.
In addition, Millet and his team have said that "dollarization" is the medium-term goal of his administration, but so far has not released a "dollarization" roadmap.
After a series of new policies, prices in Argentina have risen sharply.
Argentina ’ s National Institute of Statistics and Census released a report on the 11th, saying that the country ’ s inflation rate reached 25.5% in December 2023 and the cumulative inflation rate in 2023 reached 211.4%, both setting records since 1990.
Food prices in Argentina have almost doubled since December 2023.
For example, in early December, the supermarket price of a kilogram of beef in Argentina was about 4,000 Argentine pesos (about RMB 35), and in early January, it has risen to about 8,000 Argentine pesos (about RMB 70).
Many families have had to switch to cheaper pork and chicken because of the soaring price of beef.
In an interview with local media, an executive at a food company in Argentina said the retail price of its products rose by an average of 40% to 50% after the new policy was announced.
【 Page 1 Page 2 】
【 Printing 】

Monetary reform is a signature pillar, with Milei repeatedly advocating eliminating the central bank and adopting the US dollar.

Title:

Content: And Zelensky here as here: in Argentina was the inauguration of President Javier Miley
President Javier Miley inaugurated in Argentina
Photo by Reuters / MATIAS BAGLIETTO
Read us in: Zen News
The new leader was sworn in.
Who came to the ceremony?
The newly elected leader of Argentina, Javier Miley, was sworn in as president of the country.
The inauguration took place in the Congress building.
The previous leader of the country, Alberto Fernandez, gave his successor the presidential ribbon and baton.
During the ceremony, the new leader has already had time to talk and hug the President of Ukraine Vladimir Zelensky, who also for some reason came to the inauguration, apparently going to ask for money from Javier Miley.
For the first time in the history of Argentina, a libertarian economist became president.
He promised radical reforms.
The new leader wants to abolish the Central Bank to fight inflation and promised to privatize state-owned companies.
It also allows you to switch to the US dollar.
Javier Miley himself is quite an interesting person.
He calls himself a “Tantric Sex Coach. ”
He also talked about months of abstinence from making love.
At the same time, he notes the advantages of relations with two partners at once.
Miley opposes abortion, but sees nothing wrong with the sale of human organs.
Perhaps Zelensky came just to discuss these points.
Earlier, 5-tv.ru said that the new leader of Argentina began to make decisions on Ukraine.

closing the central bank
dollarizing the Argentinian currency

Dollarization would require congressional approval and an estimated $35–$50 billion in reserves to execute, with observers warning of exposure to US monetary policy shocks.

Title:

Content: Argentina election: Javier Milei's radical proposals face test of reality

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Javier Milei, the anti-establishment politician who cruised to victory in the Argentine presidential election last week, has courted intense controversy with radical, provocative policy proposals and statements.

This led many detractors of the self-styled "anarcho-capitalist" to call his candidacy a "leap into the void".

Now, with the mop-haired president-elect only two weeks away from taking over Latin America's third-largest economy, many are asking, how will his policies and positions face the test of reality?

Taming inflation takes time

Javier Milei had proposed to dollarise the economy and eliminate the Argentine Central Bank as a strategy to "kill" hyper-inflation. This meant making the US dollar the national currency in place of the Argentine peso, whose value, Mr Milei said, had been "melting like blocks of ice in the Sahara".

One obstacle is that ditching the Central Bank and making the US dollar legal tender would need approval from the Argentina's Congress and could even require changing the constitution.

Although Mr Milei convincingly won the presidency, his Libertad Avanza (Freedom Advances) movement is barely the third largest political force in Congress. This suggests difficult negotiations might be in store.

Some economists have also questioned whether Mr Milei's plans are feasible, saying they would weaken his government's ability to manage domestic monetary policy.

Having the US dollar as the Argentine currency would effectively leave interest rate policy in the hands of the US Federal Reserve. Argentina's economy would be more vulnerable to external shocks involving the US dollar, for example sudden rises in prices for oil and fuel imports, which could make internal adjustments even more painful inside the country.

Sceptics also point out that Argentina would need to have in hand the US dollars to replace the pesos. Experts believe this could require anywhere between US $35bn to $50bn which indebted Argentina currently does not have and may not be able to borrow easily.

Mr Milei himself has admitted his "shock adjustment" economic stabilisation recipe could actually take up to two years to bring down inflation. "Saying anything else is lying," he said.

A climate sceptic?

Another topic that had made media headlines was Mr Milei's apparent declaration of himself as a climate change "sceptic", that is, someone who denies the role of humans in global warming.

"I do not deny climate change. What I am saying is that there is a temperature cycle in the history of the Earth... Therefore, all those policies that blame humans for climate change are false," Mr Milei said during a presidential debate last month, causing much commentary and criticism.

In his proposed government programme, one of the numerous ministries he had said he planned to axe would be the existing environment ministry.

Such apparent climate scepticism risked putting Mr Milei sharply out of tune with an international majority of governments and leaders who plan to gather at the COP28 climate conference in Dubai soon to seek urgent solutions to the problems of climate change and global warming.

Pragmatism and the Pope

Before he was elected, Mr Milei virulently attacked Argentine Pope Francis, calling him a "Jesuit who promotes communism", and even the "representative of the evil one [the Devil] on Earth".

Such statements caused frictions with the local Catholic Church and the Vatican.

However, this antagonism appeared to miraculously dissipate only days after his election win, when Mr Milei had what he called a "very friendly" phone call with the Pope, whom he addressed as "Your Holiness", inviting him to visit Argentina in 2024.

Asked in a TV interview about this change of heart, Mr Milei conceded that, when one is president, "there are some things that require greater doses of pragmatism".

No break with China and Brazil

Before his election, Milei had signalled he could freeze ties with Brazil and China, Argentina's two top trading partners, on the grounds that he did "not make pacts with communists".

"I am going to be aligned with the United States, Israel, and the free world," he said.

Not surprisingly, this assertion caused consternation in Beijing and Brasilia, as well as in Argentina.

A Chinese foreign ministry spokesperson was quoted as warning that it would be a "huge foreign policy mistake" for Argentina to cut ties with countries such as China and Brazil.

Mr Milei's predecessor, outgoing left-wing President Alberto Fernández, had carefully nurtured ties with Beijing and had welcomed an invitation to join Brics, the China-led group which also comprises Brazil, Russia, India, and South Africa.

Experts questioned the wisdom of dismantling a relationship that clearly brought benefits to Argentina, and not only by China being a top market for Argentina's soybean, meat and grains.

China was also helping to prop up Argentina's financial reserves with a major currency swap deal - significant support for a country already heavily indebted to the International Monetary Fund (IMF).

Days after the election, however, there seemed to be clear signs that no major break in relations was planned. The president-elect received a personal letter of "congratulations and good wishes" from Chinese President Xi Jinping and Mr Milei himself made a point of thanking Xi on social media.

Mr Milei's pick for foreign minister, Diana Mondino, also dismissed as "nonsense" any suggestion that there would be a rupture in "commercial relations" with China or Brazil.

In Brazil, Mr Milei's invitation for former President Jair Bolsonaro to attend his 10 December inauguration was interpreted as "unfriendly" towards Brazil's current left-wing President Luiz Inácio Lula da Silva.

But Milei has since said Lula would be "well-received", if he wanted to come.

Dictatorship denial

Mr Milei and his vice-presidential running-mate Victoria Villarruel also ignited intense controversy during the campaign with their position regarding Argentina's 1976-83 military dictatorship.

Defying traditional positions held by Argentina's government and society for the last 40 years, Mr Milei caused outrage by contesting the generally accepted estimate of those abducted and "disappeared" in the dictatorship - 30,000 - asserting the actual number was closer to 9,000.

The candidate argued that the political violence of the 1970s in Argentina was a two-sided "war" in which "the forces of the state committed excesses but the terrorists [anti-government guerrillas] ... [also] committed crimes against humanity".

This equivalence of presentation of the two sides raised howls of protest from groups like the Plaza de Mayo mothers and grandmothers of disappeared persons.

This was just another striking way in which the Milei-Villarruel duo were trying to shake up the political status quo in Argentina. The next four years will show if they can do it.

Amid implementation challenges, some reporting suggests the administration could slow or shelve the dollarization push even as it continues pursuing currency competition and anti‑money‑printing commitments.

Title:

Content: Off course.
Anarchist president could not be "planted" on the dollar - RIA Novosti, 29.11.2023
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Off course.
The anarchist president could not be “hooked ” on the dollar
Argentina ’ s new president makes first visit to the United States
© AP Photo / Natacha PisarenkoJavier Miley, who won the presidential elections in Argentina, during a speech to his supporters
Javier Miley, who won the election of the President of Argentina, during a speech to his supporters.
Archive photo
Read ria.ru in
MOSCOW, 29 Nov — RIA Novosti, Renat Abdullin.
The winner of the presidential elections in Argentina, Javier Miley, arrived on a visit to the United States to establish contacts.
However, in Buenos Aires, judging by some reports, already refuse excessive rapprochement with Washington.
About what has changed, in the material RIA Novosti.
"Spiritual" trip
Before the inauguration more than a week, however, Miley already felt himself the owner of the country and actively took up work.
© AP Photo / Natacha PisarenkoJavier Miley
Javier Miley
The libertarian (as he positions himself) came to power with a far-right populist agenda, tied primarily to the economy.
This is a big problem in the country - inflation has exceeded 60% only since the beginning of the year.
Miley promised to literally destroy the Central Bank and move from the peso to the dollar.
He is also against joining the BRICS, which was agreed in August.
Now it's in question.
It is symptomatic that Miley made his first foreign visit to the United States.
However, as noted by the publication La Nacion, the main purpose of the trip is “spiritual ”, namely, a visit to the grave of the leader of the Lubavitcher Hasidim Menachem Mendl Schneerson in New York.
Miley has repeatedly spoken of his closeness to Jewish faith and traditions.
Then he plans to go to Israel.
The dollar will wait.
The company he was made by the former Minister of Finance of Argentina Luis Caputo (who is expected to be the head of the Ministry of Economy), as well as Nicolas Posse (likely Prime Minister).
The delegation met with representatives of the US Treasury, the International Monetary Fund (IMF), White House National Security Advisor Jake Sullivan and the US Deputy Assistant Secretary of State for Western Hemisphere Affairs.
Shortly before the trip, Miley had a telephone conversation with IMF Managing Director Kristalina Georgieva.
The parties did not disclose the details of the conversation, but they have something to talk about: Buenos Aires owes the fund $44 billion.
On the postponement of payment in 2018 agreed Mauricio Macri, then the President of Argentina, and now one of the main allies of Miley.
As for the US representatives, according to AFP, citing sources in Buenos Aires, the purpose of the conversations with them was “to explain the economic plan of the new (Argentine) administration, including financial adjustment, monetary reform, state reform and deregulation. ”
There is no question of loans or any kind of mutual preferences.
In addition, Miley had lunch with Bill Clinton, who “is pretty much on the other side of the ideological barrier, ” notes U.S. News.
The meeting was "a particularly unexpected part of the first overseas trip."
This behavior of Miley went against his recent rhetoric and promises to switch to the dollar.
Moreover, according to the Financial Times, this idea can be shelved at all.
As the FT reminds, the newly elected president wanted to appoint Emilio Ocampo, an ardent supporter of dollarization, as head of the Argentine Central Bank.
Now, says a source close to the economist, the candidacy was withdrawn from consideration.
So, Miley does not intend to “change ” the peso to the US currency in the short term.
"Communists" - non-alternative partners
This is not the first signal about softening the position of the president compared to pre-election plans.
At the end of last week, his office called the rumors about the promised "destruction" of the Central Bank false and not negotiable.
The head of state himself noted that before the transition to the dollar, it is necessary to study "whether the situation (this) allows."
The layout on the outer perimeter also changes.
If recently Miley called the President of Brazil Lula da Silva “a communist with whom he would not deal ”, now called to the inauguration on December 10.
Foreign policy adviser Diana Mondino went to Brasilia with the appropriate invitation.
“The main message is that we are fraternal countries.
And we will remain them, ” — said the diplomat. — We must work hard together to ensure the growth of both countries. ”
“It is one thing to criticize ideology, and another to criticize the person, ” Mondino quotes Bloomberg.“ We must separate the state, the government and the people. ”
© AP Photo / Eraldo PeresPresident of Brazil Luiz Inácio Lula da Silva
President of Brazil Luiz Inácio Lula da Silva
However, she did not tell whether she discussed with her Brazilian colleagues the Argentine future in the BRICS.
She added: “We are already working with almost all countries (associations). ”
One such state is China, which was also the target of criticism of the new Argentine leader.
"I am a defender of freedom, peace and democracy.
Communists, the Chinese do not relate to this, ” he said in September in an interview with American journalist Tucker Carlson.
Now Miley has changed his anger to mercy.
The other day in the social network X (former Twitter), he thanked President Xi Jinping for congratulating on his election and sent "the most sincere wishes for the well-being of the Chinese people."
Brazil and China are the main trading partners of Argentina, so the desire to maintain relations with them is understandable.
The question is how the United States will react.
Washington is used to seeing Latin America as a backyard.
But the last bet on Miley, even nicknamed the local Trump, obviously does not work yet.
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In the short term, the government devalued the official rate by roughly 54% and emphasized unifying exchange rates to curb distortions.

Title:

Content: More than 300 economic reform measures in Argentina rebounded, new president ignored: urged Congress to speed up deliberation
Written by external sources (international)
Published: Updated:
After becoming president of Argentina, Javier Milei, known as the “Trump of Argentina, ” launched a“ shock therapy ” and issued an economic decree with more than 300 reforms, including privatization of state-owned enterprises, an end to export restrictions and deregulation.
According to the US media "New York Times", Reuters and other foreign media reported on December 23, Argentina's national inflation has accelerated rapidly in the past two weeks, and more than a dozen provinces have declared a state of economic emergency.
In recent days, people across Argentina have taken to the streets to show their dissatisfaction with the Mirai government.
However, Millet remained unmoved and called for a special session of parliament to speed up the implementation of the reform policy.
“High inflation has become synonymous with Argentina, and people are used to rising prices.
But after Millet took office, people ’ s lives became more painful. ”
The New York Times reported on the 23rd that in the past two weeks since Millet became president, prices in Argentina have soared at a dazzling rate.
The owner of a bar in the Argentine capital Buenos Aires has seen the price of beef soar by 73% and the price of cucumber by 140%; a Uber driver says she now pays 60% more for filling the tank; and a father says he pays twice as much for diapers as he did last month.
The report quoted government data as saying that the price of gasoline has recently soared by 60%.
There are also analysts who predict that Argentine house prices will rise another 25% to 30% in the near future; from now until February next year, house prices will continue to rise 80%.
Argentine President Javier Milei announces economic measures in a televised speech in Buenos Aires on December 20, 2023.
This is a screenshot of a video released by the Argentine government.
(ARGENTINE GOVERNMENT TV / via REUTERS TV / Handout via REUTERS)
“We ’ ve been worried since Milai won, ” said Fernando Galli, 36, who was pessimistic about the situation.
He is a high school philosophy teacher in Buenos Aires and is raising two young daughters (one 6 years old and one 18 months old).
The New York Times said that most Argentines are struggling to figure out how to make ends meet, and every time they buy necessities, it is like taking a complicated economics course.
As President, Argentina is in the midst of a severe economic crisis, with a cumulative inflation rate of 142.7% and a poverty rate of more than 40% over the past 12 months.
Argentina is also facing a debt crisis, with more than $44 billion owed to the International Monetary Fund.
Since this year, Argentina ’ s inflation rate has peaked at 8.4% in April, and some experts predict that Argentina ’ s gross domestic product will shrink by 3.1% this year and another 0.2% in 2024.
During his presidential campaign, Millet made "astonishing remarks" and proposed a number of "surprising" policy proposals. He promised to cut the central government departments from 18 to 8 and cut them to 9 on his first day in office, and quickly fulfilled this campaign promise.
In addition, he has promised to adopt so-called “economic shock therapy, ” advocating the“ burning up ” of poorly managed central banks, abolishing the peso, shifting to “dollarization ” across the board, slashing spending, allowing open carry of firearms, legalizing organ trade, and restricting abortion.
Milley himself issued an early warning.
At his inauguration ceremony on Dec. 10, Mr. Millet said publicly that he would reduce the size of government and rebuild the economy, something that would hurt at first, but “I would rather tell people the uncomfortable truth than the comfortable lies. ”
In Buenos Aires, Argentina, on December 21, 2023, demonstrators protest against the new policies of Argentina ’ s new president, Mirai, outside the parliament building. (Reuters)
Two days after taking office (12), Millet began to engage in "shock therapy", taking a series of measures, including cutting government spending, reducing consumer subsidies, and stopping tenders for new public works, in an attempt to reduce the fiscal deficit and control inflation.
Argentina ’ s economy minister announced on the same day that the new government lowered the official exchange rate to 800 pesos per US dollar, a 54% devaluation.
On December 20, Millet signed an emergency economic decree announcing more than 300 reforms, including the privatization of state-owned enterprises, the end of export restrictions and the relaxation of regulations, in order to achieve the "liberalization" of the Argentine economy.
The New York Times quoted economists as saying that although Millet's measures are necessary to solve Argentina's long-term financial problems, they also cause short-term pain.
At the same time, some analysts question the lack of safeguards for the poorest people in Argentina.
One Argentinian put it bluntly: “It is impossible for people ’ s wages or incomes to adapt to this rate of inflation. ”
Thousands of people, led by representatives of the unemployed, took to the streets of Buenos Aires on Monday to stage the first mass protest since the Mirai government came to power against the new government ’ s “economic shock therapy ” and austerity policies, demanding more support for the poor.
Demonstrators hold flares outside the parliament building in Buenos Aires, Argentina, on December 21, 2023, to protest against the new policies announced by Argentina ’ s new president, Miguel Millay. (Reuters)
In the face of public dissatisfaction, the Milai government did not move.
On the day of the protests, the Argentine government deployed a large number of police to stop protesters from blocking roads.
The Millet government has also threatened to take tough action against any group of organisations trying to thwart its plans through disruptive protests, and those blocking roads could lose their right to state benefits.
Manuel Adorni, a spokesman for Millet, also responded that higher inflation is an inevitable process to repair Argentina ’ s “distorted economy. ”
"There are many difficult and unresolved problems in Argentina, and we have to start solving them," he said.
We will inevitably experience months of high inflation, "he said.
On the evening of the 22nd local time, Millet said that he had submitted the law to the Argentine parliament on the same day, and called on the parliament to convene a special session between December 26 and January 31 to discuss the relevant issues.
Reported that the current parliament is in recess, the next meeting is scheduled for March next year.
This article is authorized by the Observer Network

Legislatively, Milei governs with a minority in both chambers and has relied on decrees and omnibus legislation while facing contentious debate in Congress.

Title:

Content: Argentina's Senate in Deadlock: Economic Reform Bill Ignites Protests

Argentina's Senate is deeply divided as it debates President Javier Milei's economic reform bill aimed at privatizing state entities and boosting investment. Protests erupted outside Congress, leading to clashes with police. The bill requires 37 votes to pass the Senate, with a tie possibly broken by the vice president.

Reuters | Updated: 13-06-2024 04:50 IST | Created: 13-06-2024 04:50 IST

Argentina's Senate began debating a sprawling bill on Wednesday that is key to libertarian President Javier Milei's economic reform plans, while protesters set fires and clashed with police in the streets outside Congress. The upper house, which is divided almost down the middle over the bill, which is designed to boost investment by privatizing state entities and providing incentives for businesses, is set for a marathon debate. The bill passed the lower house of deputies in April following many changes after it was rejected in a first vote in February.

Milei's government, which controls only a minority of seats in both chambers, has been bargaining to win over allies. It knows the bill will be modified, but is hoping to at least get general approval. Outright rejection would be a major blow. Local legislators and media outlets estimated that senators were evenly split. The bill needs 37 votes out of the 72 total legislators in the chamber to get a majority.

"It is a very even vote: it's 36 and 36," Guadalupe Tagliaferri, a conservative lawmaker from the government-allied Together for Change, told reporters. She said the vote could come down to the vice president, who presides over the Senate, to break the tie. The main left-leaning Peronist opposition bloc, closely allied to the unions, is likely to vote down what is known as the "bases" bill and a separate fiscal package. The main bill includes plans for privatizing public firms, granting special powers to the president and spurring investment.

"Argentine people's lives are at play. We've drunk this poison several times: to have zero inflation with zero economic activity," protester and social leader Luis D'Elia said as thousands protested the planned reforms. "This poison has failed several times in Argentina and we won't allow this to carry on."

Reuters footage from the streets of Buenos Aires showed a car set on fire, with scattered protesters throwing rocks and bottles, while police with riot gear used tear gas, water hoses and rubber bullets. Milei's office issued a statement congratulating the security forces for holding back "terrorist groups" armed with sticks and grenades who "tried to perpetrate a coup d'etat." It did not provide further evidence.

'CHANGE ARGENTINA' Milei, a brash economist and former pundit who has clashed with lawmakers and regularly called Congress a "nest of rats," has tied a lot to the bill. His government says it is key to undoing a major economic crisis that it inherited.

"We are going to change Argentina. We'll make a liberal Argentina," Milei said on Wednesday, adding that if his reforms didn't get through Congress now he'd try again in 2025. A government official speaking on condition of anonymity said that they expected the bill to get general approval in the Senate, but would be "more altered than we would like". If it is approved with changes it will go back to the lower house.

"If the Bases law is passed, it accelerates the growth process, mainly by getting investment into the country. If it is not passed, we keeping going, though perhaps more slowly," the person said. Argentina has annual inflation near 300%, myriad capital controls that stymie business and trade, depleted foreign currency reserves and a high debt load that needs servicing. The economy is in recession and poverty is rising.

The Senate debate is expected to continue late on Wednesday, with voting potentially set to take place in the evening. "They are going to have to buy popcorn," La Libertad Avanza Senator Francisco Paoltroni told local channel C5N. "It is going to be a long night of trying to break the deadlock."

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

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After a marathon process, the lower house granted general approval to the reform package, and the Senate later approved key state overhaul and tax bills with Vice President Victoria Villarruel casting the deciding vote in a 36–36 tie.

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Content: Skip to Content

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 approved package delegates broad powers to the presidency in areas such as energy, pensions, and security, authorizes privatizations, and includes investor incentives and a tax amnesty for undeclared assets.

A separate reform chapter allows a one‑year economic emergency, empowers the executive to dissolve federal agencies, weakens some labor protections, and targets the privatization of Aerolíneas Argentinas.

Title:

Content: International
International news.
Argentina considers austerity reforms, protests outside Congress like a battlefield
(Ming Pao News) Argentina ’ s Senate on Wednesday (12) initially approved the controversial austerity economic reform plan proposed by far-right President Milai, during which opponents violently demonstrated outside the country ’ s parliament, throwing gasoline bombs and burning cars, and police used rubber bullets, tear gas and water cannons to disperse.
The office of the president of Argentina condemned the "attempted coup by a terrorist organization".
Miley ’ s proposed economic reform package included declaring a one-year state of economic emergency to allow him as president to dissolve some federal agencies and privatize about a dozen public companies, including Aerolíneas Argentinas.
Other measures in the reform package include raising the threshold for receiving minimum retirement subsidies and weakening labor protection.
The bill originally received a vote of 36: 36 in the Senate, and finally on Wednesday night, Vice President and Senate President Vera Ruhr cast a vote in favor, breaking the deadlock and being passed by the whole. The Senate will then consider the provisions of the bill on a case-by-case basis and then submit it to the House of Representatives for final vote.
Congressman injured in hospital
Some protesters criticized the bill as including measures that hurt labor rights and set Argentina back 100 years.
The health department said seven protesters were hospitalized in pepper spray, including five lawmakers, and dozens of injured people were treated at the scene.
Security sources said at least 20 police officers were injured and 15 others were arrested.
Argentina is facing economic problems such as ultra-high inflation of 300%, and Miley has promoted radical “shock therapy ” since he took office in December, including cutting half of cabinet posts and 50,000 public jobs by executive order.
(AFP / BBC / Reuters)
Related Words: Austerity Policy Economic Reform Javier Milei Inflation in Argentina
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How will Milei's reforms impact workers?

What industries were affected by Milei's deregulations?

The administration’s political approach has included stringent public order measures as massive protests erupted nationwide against austerity and privatization.

Federal forces were authorized to disperse roadblocks without a judicial order, the government used video evidence to identify protesters, and officials at times labeled protest groups “terrorists.”.

Major demonstrations around Congress saw clashes, with dozens of injuries and arrests as unions and left‑wing parties mobilized against pension cuts, labor changes, and the emergency delegation of powers.

Title:

Content: International
2024-06-13 16: 06: 58
Argentine parliament passes economic reform plan, sparks violence
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Argentina ’ s President Javier Milei ’ s proposed economic reforms, which were passed by a narrow margin in Congress, have sparked clashes outside the parliament, with protesters saying the reforms hurt millions of Argentines and local media describing the scene as a “battlefield. ”
Millet, who was elected president last year, is a right-wing economist in Argentina who was elected president at a time of severe economic distress.
Argentina ’ s annual inflation is close to 300%, leaving more than half of Argentines in poverty.
Among the reforms proposed by Millet are declaring the country into an economic emergency, cutting pensions and diluting labor rights.
Left-wing political parties, trade unions, and social organizations opposed it.
The bill was tied with 36 votes in favor and 36 against, but the Speaker of the House, Vice President Victoria Villarruel, voted in favor.
“For all Argentines who are suffering, waiting and don ’ t want to see their children leaving their country, my vote is decisive.
The motion will be considered on a case-by-case basis and is expected to be passed on Thursday (13), after which it will be returned to the next House for final implementation.
The president said protesters were trying to stage a coup.
However, demonstrators outside the parliament shouted "the country is not sold, it is to be protected", and said: "Why does the head of state hate his own country?" According to local media, the local "battlefield", demonstrators threw gasoline bombs and stones at riot police officers, and some observers and opposition lawmakers said that about 10 people needed medical treatment at the scene of the demonstration, including at least five anti-opposition lawmakers.
Argentine police said at least 20 officers were injured and 15 were arrested.
Argentina ’ s presidential office issued a statement thanking the defense forces and describing the demonstrators as “terrorists trying to launch a coup. ”
“We are going to change Argentina and make it the freest country in the world, ” he said. After he came to power, he cut cabinet posts in half and cut 50,000 civil servants, halted new public works contracts and eliminated subsidies for fuel and transportation.
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How will Milei's reforms impact workers?

Who has opposed Milei's proposed layoff order?

Macroeconomic conditions remain severe, with annual inflation surpassing 200% and approaching 300% as the economy slid into recession and poverty exceeded 40%.

As of 2024, what are the statistics regarding poverty?

What economic issue did Milei want to address?

December 2023 inflation was 25.5% month‑on‑month, pushing 2023 inflation to 211.4%, while the annual rate later slowed to 271% in June 2024.

What economic issue did Milei want to address?

The removal of energy subsidies and price control programs has driven utility bills sharply higher, with the cost of living surging nearly 80% in the first five months of 2024.

How much did the cost of living increase in 2024 as compared to the previous year?

Industrial production has fallen, unemployment has risen, and over 50,000 jobs were lost amid cuts and layoffs, with child poverty projected to reach 70% in 2024.

Title:

Content: People 's Network > > International
International observation _ How effective is the reform of Argentina 's President Mile' s 100 days in office?
March 20, 2024 15: 28 | Source: Xinhua Network
Small number
Xinhua News Agency, BUENOS AIRES, March 19 (Xinhua) -- Argentine President Gloria Macapagal-Millet has been in power for 100 days
Xinhua News Agency, Wang Zhongyi
Argentine President Gloria Macapagal-Millet has launched a series of "shock therapy" reforms aimed at reducing the fiscal deficit and controlling inflation since he took office last December.
The two main reform measures proposed by the Millet government are still pending due to parliamentary procedures.
Argentina has achieved a fiscal surplus for two consecutive months, and inflation has eased, but unemployment has increased, industrial production has fallen and prices have risen.
Analysts believe that whether the reform can get parliamentary support, whether inflation can be controlled, and whether public anxiety can be relieved are still challenges facing the government.
Prospects for reform uncertain
In his first month in office, Millet introduced two major reforms, a necessary emergency decree called "The Basis of Argentina's Economic Reconstruction" and a comprehensive bill called "The Basis and Starting Point of Liberties for Argentines", aimed at loosening government and legal control over the economy, reducing the fiscal deficit and facilitating import and export trade.
Mile also devalued the peso, Argentina's currency.
On March 14, the Argentine Senate voted to reject the necessary emergency decree signed by Millet, which will then be submitted to the Chamber of Deputies for consideration and vote.
According to Argentine law, even if the decree is rejected by the Senate, the decree may enter into force if it is passed by a vote of the Chamber of Deputies; if it is rejected by the Chamber of Deputies, the decree will be null and void.
The bill, which has not yet been passed by the parliament, is currently scheduled to be amended to be submitted to the parliament for consideration.
Analysts believe that the resistance to the reform mainly comes from the left and the trade unions, and because the ruling party and the left-wing opposition parties do not have a majority in both houses, Millet still needs to win the support of the central parties to push for the reform.
Sun Hongbo, deputy researcher of the Latin American Institute of the Chinese Academy of Social Sciences, believes that the Milai government intends to carry out a systematic and radical reform, but the relevant reform measures are facing various political checks and balances.
On the whole, Millet's government is facing constraints from various forces, such as the ruling coalition, left-wing parties, local governments and trade unions, and there are many uncertainties in its prospects for radical reform.
People's plight to be alleviated
Recently, many news is regarded as good by the Argentine government: Argentina's central bank cut its benchmark interest rate to 80%, two consecutive months of fiscal surplus, inflation pressure has eased, the International Monetary Fund approved another 4.7 billion US dollars of loans to Argentina, Argentina completed more than 50 billion US dollars of debt replacement.
Despite this, the population of Argentina is still plagued by rising unemployment and rising prices.
In March, the Argentine people ushered in the day of resumption of work and school, but many people received calls to be dismissed.
Argentine media reported that companies said sales had fallen sharply and could not afford to hire so many employees.
Unemployment, poverty and rising prices loom over the Argentine population.
Argentine sociologist Marcelo Rodríguez said that more than 50,000 jobs have been lost due to government cuts, layoffs and the withdrawal of funds from public programs, and unemployment in Argentina is expected to rise in the future.
According to the latest report of the Argentine Industrial Union, Argentina's industrial production index fell to 29.9% in January this year, the lowest level in recorded history, and for the seventh consecutive month it was in the contraction range of less than 50%.
The report said that more than half of the small and medium-sized enterprises in the survey declined in output, and multiple sets of data showed that the plight of industrial production in Afghanistan has intensified, with small and medium-sized enterprises bearing the brunt
According to UNICEF, poverty among children and adolescents in Argentina will reach about 70% and extreme poverty 34% in the first quarter of 2024.
On March 18, a number of labor unions in Argentina launched marches in Buenos Aires and other cities across the country. In January, a number of national trade unions and leftist organizations also held a national strike to protest that the reform measures of the Mile government ignored the rights of labor and social vulnerable groups, resulting in the suspension of services in banks, gas stations, airports, airlines, sanitation and other industries in Argentina.
Economy faces stagflation challenge
Argentine economist Gustavo Nefa believes that the Mile government has reversed the decline in Argentina's dollar reserves in the past 100 days, but the country's economy still faces the challenge of stagflation.
Argentina's National Institute of Statistics and Census data show that Argentina's inflation rate in February this year was 13.2%, down from 20.6% in January and 25.5% in December last year; the cumulative inflation rate in the past 12 months reached 276.2%.
Rosendo Fraga, a researcher at the National Institute of Ethics and Political Science in Argentina, said that although the monthly inflation rate has decreased, inflation is still at a high level.
The International Monetary Fund (IMF) released a report on January 30, predicting that Argentina will face recession and rising inflation in the context of a sharp economic policy adjustment.
The report predicts that the Argentine economy will shrink by 2.8% in 2024.
Argentina's TN news television recently quoted a report by the international rating agency Moody's Investors Service saying that the Argentine economy is expected to shrink by 5% in 2024, a decline far beyond the 2.5% forecast in November 2023.
In terms of inflation, Argentina ’ s inflation rate is expected to exceed 280% in 2024 and will still exceed 220% in 2025.
(Editor: Yu Yang, Xu Xiangli)
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Despite the social strain, the government posted its first quarterly fiscal surplus since 2008 at 0.2% of GDP, reflecting deep cuts in transfers to provinces (down 75%) and a 90% halt in public works.

Title:

Content: Argentine government announces first quarterly surplus since 2008

Javier Milei celebrated the accomplishment, which achieved via a substantial reduction in government spending, including reductions in public works and redistribution to regional governments.

The Argentine government, led by President Javier Milei, announced Monday that it closed the first quarter with a fiscal surplus for the first time since 2008.

Milei broke the news on national television with marked joy. This fiscal surplus of 0.2% of GDP occurs after the first three months under the Libertarian president and his "chainsaw" method against public spending. Since coming to power, as he promised during the campaign, Milei has carried out a policy of heavy cuts to state infrastructure.

“This economic miracle of achieving a quarterly financial surplus after almost 20 years, having inherited the situation that we did, responds to what those who want the failure of this government usually say, to an enormous extent to what we called a 'chainsaw' during the campaign, and not as some say to the liquefaction of public funds, a method that has historically been used in our country," celebrated Milei from the Casa Rosada in Buenos Aires, the president's official residence. “The fiscal surplus is the cornerstone from which we will build Argentina's new era of prosperity,” he added, standing alongside several members of his government.

The fiscal surplus of 0.2% for Argentina represents about $300,000. The accomplishment comes after cuts of almost 75% of state transfers to regional governments in Argentina, as well as halting 90% of public works, and the popular policy of reducing the number of public ministries from 18, as under the previous government, to only nine. Argentine bonds increased in value shortly after the president's announcement.

For Milei, the reduction of public spending and of the large deficit was an obligatory step in his objective of restructuring the Argentine state. The president assured that public deficits cause inflation, his arch nemesis, which in 2023 in Argentina was the highest in the Americas, reaching 211.4% at the end of Alberto Fernández's presidency.

Argentina also reported two consecutive monthly fiscal surpluses early in the adjustment, signaling the administration’s drive toward a balanced budget.

What issue did Milei want to address without printing money?

The International Monetary Fund remains pivotal, with Argentina owing about $44 billion under an existing program as the Fund supports tight monetary and exchange‑rate policies while warning of tough months ahead.

Title:

Content: IMF cuts Argentina's 2024 growth forecast
International News
2024-06-17 | 14: 51
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IMF cuts Argentina's 2024 growth forecast
The International Monetary Fund (IMF) lowered its growth forecast for Argentina in 2024, but expected inflation to slow faster than expected amid wide-ranging economic reforms being implemented by Argentina ’ s new president, Javier Mille.
Argentina ’ s economy is expected to contract this year by 3.5%, according to the IMF ’ s updated economic forecast, 0.75 percentage points more than previously forecast.
The IMF pointed to a "deeper contraction" expected in non-agricultural production.
On the other hand, inflation is set to slow much more than expected this year: the IMF expects the average annual rate to be 232.8%, 20 percentage points lower than its previous forecast in January.
The IMF said in its report that expectations of a slowdown in inflation "are supported by improvements in the framework of monetary and exchange rate policy and a recovery in demand for the peso."
Far-liberal President Javier Milley has vowed to halt Argentina ’ s economic decline and cut its budget deficit to zero.
Since taking office in December, he has embarked on a programme to cut public spending and curb inflation, which remained at an annual rate of more than 275 percent last month.
The IMF board gave the green light on Thursday to disburse a tranche of about $800 million to Argentina as part of a $44 billion deal.
Argentina ’ s Senate has adopted a package of regulatory reforms proposed by Javier Mille, despite objections.
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International Monetary Fund (IMF)
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The IMF approved a $4.7 billion disbursement and expects contraction in 2024, while praising reform momentum and releasing previously frozen tranches, though it has held back on a new deal.

Title:

Content: Millie is facing the minefield of the economy, politics and society of Argentina
Argentina ’ s president-elect Javier Milley ’ s sweeping reform package overcame the first parliamentary hurdle, winning public approval on the third day of debate in the House of Representatives, while the initiative, which included economic, social and political areas, sparked strong protests from the opposition and the Argentine street.
Argentina has been embroiled in a long-running conflict with severe economic crises that have led its citizens to turn their attention to Mili, who won a resounding victory in last October ’ s election.
As a result of public discontent over decades of economic instability, with annual inflation surpassing the 200 percent threshold and poverty levels rising to 40 percent, Milley embarked on a “bold path to redefining Argentina ’ s future. ”
Massive opposition.
Tens of thousands took to the streets in defiance of Milley ’ s austerity measures, which included cuts to the balance sheet.
The demonstrations disrupted parliamentary debates, leading to confrontations between law enforcement forces and protesters.
Police fired rubber bullets and tear gas, and sprayed protesters with water cannons, with reports of injuries and arrests among protesters.
The leftist opposition withdrew from parliament, denouncing what it saw as a severe police crackdown on protesters.
Opposition MP Mariano del Canio told the AP that "we can't work this way", stressing that protesters should be heard before they return to the hearing after a period of suspension.
Parliamentary manoeuvres
In a strategic move to bolster his program, Milley secured IMF approval to disburse nearly $4.7 billion to Argentina.
The package of reforms, dubbed Omnibus, spans across different sectors, from electoral and cultural reforms to privatization, penal code amendments, and changes to the status of football clubs.
The House of Representatives, by 144 votes to 109, granted general approval, paving the way for the next phase of negotiations in the Senate.
The bill ’ s 664 clauses, which sum up the complex fabric of Melli ’ s reforms, will be subject to close scrutiny and possible amendments.
Although the House of Representatives has generally approved Melli ’ s reform bill, negotiations are on the horizon.
The complex details of the bill, which include economic, administrative, criminal and environmental areas, will be subject to strict scrutiny, according to a pro-plan parliamentary description.
Lawmakers, some of whom have expressed reservations about specific articles on privatizing state companies and delegating legislative powers to the president, are due to participate in detailed discussions.
Milley ’ s challenge is not just to overcome ideological differences, but to build consensus within a fragmented political landscape.
The upcoming recess will provide a break before crucial negotiations resume, marking a pivotal stage in Milley ’ s ambitious agenda for his program.
Millie's presidency is at a crossroads.
Milley ’ s presidency, marked by libertarian principles and capitalist ideals, faces the complex challenge of balancing economic liberalization with societal expectations.
Austerity measures and privatization plans were not without opposition, leading to protests and even a general strike.
The president ’ s swift measures, including a 50 percent devaluation of the peso, cuts in subsidies, and deep cuts in ministries, reflect his confrontational approach to tackling the government ’ s budget deficit and fighting inflation.
However, these actions have aroused resentment, as protesters have questioned the potential impact on the most vulnerable groups in society.
The course of Melli's reforms will shape the country's economic and social landscape.
Experts say that the fine line between government initiatives, parliamentary negotiations and street reactions highlights the multifaceted nature of Argentina ’ s current socio-political reality.
As Argentina grapples with historic economic challenges, observers expect Milley ’ s presidency to be a decisive chapter, with the split between economic liberalization and social welfare taking center stage with every decision that resonates in the corridors of power and crowded streets.
Source: Al Jazeera + Associated Press

Analysts and officials note that IMF involvement shapes Argentina’s policy space, raising sovereignty concerns even as it provides financing and credibility for the adjustment.

Title:

Content: EMERGING MARKETS-Latam FX lackluster, Chile's peso slips on bets of further rate cuts

Credit: REUTERS/RODRIGO GARRIDO

By Ankika Biswas

Aug 18 (Reuters) - Latin American currencies were subdued on Friday, as concerns over weakness in top oil and metals consumer China's property sector and U.S. interest rates staying higher for longer continued to sap sentiment, while Chile's peso slipped on expectations of continued rate cuts.

The MSCI Latam currencies index .MILA00000CUS was largely unchanged, while the regional stocks gauge .MILA00000PUS shed 0.4%.

Both indexes were poised for weekly losses, with the dollar =USD set for a fifth consecutive week of gains on safe-haven demand. FRX/

Further muddying top crude oil and metals consumer China's economic outlook, embattled developer China Evergrande Group 3333.HKfiled for U.S. bankruptcy protection, as anxiety grows over the worsening property crisis.

Meanwhile, China's securities regulator unveiled a package of measures to revive a sinking stock market, but investors believe they would do little to boost confidence if the economy remains sluggish.

Chile's peso CLP=CL lost 0.2% against the greenback, with central bank data showing the economy shrank 0.3% in the second quarter.

"The fall in output alongside downwards revisions to GDP growth in Q4 and Q1 will keep the door open for the central bank to continue its monetary easing cycle (probably with further large hikes) over the coming months," said William Jackson, chief emerging markets economist at Capital Economics.

Weak copper prices also weighed on top producers Chile's peso and Peru's sol PEN=PE, also down 0.2%.

Top crude oil exporter Colombia's peso COP= slipped 0.1%. On Thursday, a strong earthquake of 6.3 magnitude struck Colombia's capital Bogota.

Brazil's real BRL=BRBY gained 0.2%, but was set for third week of losses.

A preliminary estimate showed Mexico's economy likely grew 3.4% in July year-on-year, while another data set revealed June retail sales rose 2.3% month-on-month. The peso MXN=D2 was up 0.2%.

Argentina presidential candidate Javier Milei, with a bold vision to dollarize the economy and get rid of the central bank, is set to meet International Monetary Fund representatives on Friday, days after a shock primary election sent the cash-strapped nation's markets reeling.

The country is the largest debtor to the IMF with a $44 billion loan.

Meanwhile, Argentina's economy ministry on Thursday said it will freeze fuel prices until Oct. 31 as a measure to help tamp down triple-digit inflation.

Elsewhere in Latin America, international bondholders holding more than $11 billion of Venezuela's debt have backed the National Assembly's offer to push back the legal deadline to sue the country for defaulting six years ago.

Traders will keep an eye out for Jamaica's interest rate decision later in the day and an Ecuadorian presidency election over the weekend.

Key Latin American stock indexes and currencies at 1410 GMT:

Stock indexes

Latest

Daily % change

MSCI Emerging Markets .MSCIEF

962.84

-1.13

MSCI LatAm .MILA00000PUS

2330.85

-0.38

Brazil Bovespa .BVSP

114605.60

-0.33

Mexico IPC .MXX

0.00

Chile IPSA .SPIPSA

6089.22

-0.69

Argentina MerVal .MERV

0.00

Colombia COLCAP .COLCAP

1129.97

-0.44

Currencies

Latest

Daily % change

Brazil real BRBY

4.9699

0.20

Mexico peso MXN=D2

17.0646

0.21

Chile peso CLP=CL

867.9

-0.17

Colombia peso COP=

4112.89

-0.11

Peru sol PEN=PE

3.7138

-0.23

Argentina peso (interbank) ARS=RASL

349.9500

0.01

Argentina peso (parallel) ARSB=

750

4.00

(Reporting by Ankika Biswas in Bengaluru; editing by Jonathan Oatis)

((Ankika.Biswas@thomsonreuters.com;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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Regulatory changes are wide‑ranging, touching aviation, healthcare, pharmaceuticals, customs, housing, and tourism, with a new law limiting large‑scale regulatory measures in key sectors.

Title:

Content: International
International news.
Argentina pushes 300 economic loosening measures, thousands of people take to the streets
Libertarian Argentina ’ s new president, Manuel Mirai, on Wednesday unveiled a wide-ranging emergency decree authorizing more than 300 deregulation measures in different sectors, including housing, customs and tourism, in an effort to revive the economy.
In his prerecorded speech, Miley said it was the first step toward ending Argentina ’ s “pattern of decline. ”
Earlier on the same day, there was the first large-scale demonstration after Miley came to power, and left-wing organizations mobilized thousands of people to take to the streets to demand the end of Miley's "layoff plan".
The law will directly outlaw large-scale regulatory measures in Argentina such as housing leasing, export customs arrangements, land ownership, food retailing, etc., and amend regulations in the aviation, health care, pharmaceutical and travel industries to encourage competition. It will also reduce employee compensation programs and extend the probation period for new employees.
The new rules will also change the legal status of state-owned enterprises so that they can be privatized.
Following the broadcast of Mirai ’ s pre-recorded speech, some residents of the capital, Buenos Aires, immediately protested in accordance with tradition, with hundreds of people even temporarily demonstrating outside the parliament building, chanting “Our country is not for sale! ”
Opposition Beronists have accused Miley of circumventing parliament by issuing a new mandate by decree — his party holds less than 10% and about 15% of the seats in both houses, respectively.
According to the Constitution, the President has the power to issue “urgent and necessary decrees ” in most policy areas other than tax, penal and electoral matters and party rules.
(Financial Times)
Related words: Regulation of Javier Milei, Argentina
Previous / Next News

What industries were affected by Milei's deregulations?

Sectoral reforms extend to the oil and gas market and include plans to privatize major firms such as YPF, aiming to boost exports and private investment.

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

Environmental protections have been weakened in the reform drafts, signaling a deregulatory thrust beyond purely economic domains.

Human capital and science policy have also come under pressure, including proposals to cut or shutter agencies and privatize health and environment sectors, which the scientific community warns could spur a brain drain.

Title:

Content: Javier Milei’s Radical Agenda Threatens Argentina’s Scientific Community

As the 22 October presidential election in Argentina draws near, scientists in the country are growing increasingly concerned about the potential implications of front runner Javier Milei’s radical agenda. One of his most controversial proposals is the complete shutdown of the National Scientific and Technical Research Council (CONICET), the country’s main science agency and a critical source of funding for over 12,000 researchers across 300 institutions.

Milei, a libertarian candidate often compared to former US President Donald Trump and former Brazilian President Jair Bolsonaro, argues that shutting down CONICET and relying on private investment for scientific research could alleviate Argentina’s ongoing fiscal crisis. He has also proposed privatizing other sectors, including health and the environment, and even suggested allowing individuals to sell their organs for profit.

The scientific community in Argentina, home to Latin America’s third-largest economy, is deeply alarmed by the potential consequences of Milei’s presidency. The National Academy of Exact, Physical and Natural Sciences in Buenos Aires has stressed the importance of state investment in science, highlighting that leading developed countries heavily invest in scientific research as a means to drive economic development and tackle poverty.

Milei’s rise to prominence has been fueled by Argentina’s economic turmoil, with high inflation rates, escalating debt to international creditors, and significant levels of poverty. While he may currently be leading in the polls, experts remain skeptical of the figures, and his opponents are still actively campaigning to garner support.

If Milei were to become president, many fear a massive brain drain as talented researchers seek opportunities abroad. Argentina has a long history of struggling with brain drain during times of economic crises, with previous instances leading to mass emigration of scientists to Europe and the United States. While Argentina still maintains a relatively high number of researchers per capita in Latin America, the loss of these talented individuals would undoubtedly hinder the country’s scientific progress.

As the election date approaches, the fate of Argentina’s scientific community hangs in the balance. The outcome will determine not only the future of CONICET but also the country’s ability to sustain scientific advancements and retain its brightest minds. It is a critical moment for the scientific community as they await the decision that could shape Argentina’s trajectory in the years to come.

What does Milei promote in terms of healthcare and education?

Critics, including more than 100 international economists, have challenged the radical pace and scope of changes and denounced repression of protests.

Title:

Content:   1. Skip to content
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Argentina presidential election: A runoff of economic ideals

Tobias Käufer
November 17, 2023

Argentina's Economic Minister Sergio Massa and libertarian Javier Milei face off in a nail-biting presidential runoff. The two candidates have radically different solutions to Argentina's economic woes.

https://p.dw.com/p/4YuiH

Economic policy is the key issue in Argentina's runoff election on Sunday, as voters decide between the economic policy of current Economy Minister Sergio Massa and his rival Javier Milei, a far-right libertarian economist known for his radical free-market liberalism.

Argentina's dire economic figures recently reported by the National Statistics Institute (INDEC) may speak for a change after the depressed Latin American country's cost of living surged a staggering 142.7% over the year. The poverty rate in September stood at 38.9%, according to the Buenos Aires-based Pontificia Universidad Catolica (UCA).

Argentina unveils new 2,000-peso bill as inflation bites

Milei's radical ideas for Argentina's economy

Argentina has for decades been plagued by financial chaos and weak economic growth which opposition candidate Javier Milei says is the result of successive left-leaning governments and their failed socialist economic policy.

"Those who have led us into inflation and poverty are now trying to instigate fear [among the population]. Argentina was a world power at the end of the 19th century, then came the decline under the socialist governments," Milei said this week at a campaign event in Rosario in the province of Santa Fe.

He's repeatedly accused his center-left rival of running a fear campaign that would denounce him as an ultra-right hardliner who would seek to undo basic rights and democracy in Argentina. In his campaign, Milei is styling himself as the defender of the country against populism as he aims to "reduce privileges, not rights."

Milei has attracted a lot of attention for his promises to radically overhaul the Argentine government and economy with a plan to eliminate the nation's central bank and replace its currency with the US dollar. He wants to significantly reduce the state apparatus, lift laws and regulations on the economy, and privatize state services. Other controversial proposals from his camp include liberalizing organ trade and privatizing Argentina's territorial waters.

With his radical free-market orthodoxy, Milei hopes to spur economic growth and subsequently lift more Argentines out of widespread poverty.

Massa's gentler economic reforms for Argentina

Sergio Massa is a veteran of Argentine politics and the new leader of the Peronist political movement which is based on the left-wing ideas of former President Juan Peron, who ruled Argentina several times between the 1940s and 1970s. The so-called Peronists have won nine of the last 12 free and fair presidential elections.

Massa has replaced Alberto Fernandez as the Peronist frontrunner after the hapless president voluntarily resigned in April this year. He was the winner of the first round of voting in October after making a surprise comeback from poor pre-election polls capturing nearly 37% of the vote, compared with 30% for Milei.

Massa, who has led Argentina's economy for more than a year, pushed through several policies in support of his candidacy, including programs that return sales tax to certain workers and eliminate income tax for others. He has promised to maintain some economic policies that conservative economists criticize, such as large subsidies for Argentines' energy costs.

In addition, he hopes to generate enough tax and trade surpluses to help negotiations with the International Monetary Fund (IMF) on restructuring Argentina's massive debt.

Argentina's untapped economic potential

Argentina has much to offer to the rest of the world but has yet to leverage it for the benefit of the entire population. This includes large lithium deposits crucial for the transition to e-mobility, as well as offshore oil reserves and abundant natural gas reserves. Moreover, it has the potential to produce green hydrogen, its farming sector is competitive, and the country has a young, well-educated population.

"The biggest challenge for the next government is to develop an initial stabilization plan and then push through a series of structural reforms to profoundly change the economic system," Agustin Etchebarne, director of the Libertad y Progreso Foundation in Buenos Aires, told DW.

Etchebarne is part of a group of economists who condone radical structural changes to the economy to lift Argentina out of its current crisis. Others, including about 100 renowned international economic experts, are more skeptical.

In an open letter recently, some high-profile economists the likes of Thomas Piketty from France, Jayati Ghosh from India, and the former Finance Minister of Colombia, Jose Antonio Ocampo, have warned Milei's proposals are "full of risks that could potentially be very harmful to the Argentine economy and the Argentine people."

This article was originally written in German.

Key indicators to assess the reform program include inflation, poverty, fiscal balance, spending, subsidies, currency value, reserves, exchange rate gaps, investment, bond prices, unemployment, GDP growth, and export performance.

Title:

Content: (Bloomberg) -- Investors welcomed congressional approval of President Javier Milei’s omnibus bill, saying it showed he can push through contentious reforms many see as key to getting Argentina’s economy back on track.

The president won just enough support to advance his landmark austerity package in the Senate early Thursday morning, following weeks of horse-trading and pushback from opposition lawmakers.

The vote confirmed many investors’ base case scenario, sending sovereign bonds higher. US-listed shares of Argentine companies and an exchange-traded fund that tracks the country’s stocks also climbed.

Still, some see additional gains as limited since much of the reform was already priced in, and the Senate’s rejection of a provision that would expand income tax triggered concerns over Milei’s ability to eliminate fiscal deficits. A cobweb of capital controls and a weaker peso in parallel markets may also hinder foreign investment, they said.

Graham Stock, senior EM sovereign strategist at RBC BlueBay Asset Management:

  • The bill’s approval is a “very important milestone,” as it moves the “government a step closer to having some legislative underpinning for its reform program rather than relying solely on executive actions”
  • Move has “positive implications” for bond prices as it puts the fiscal adjustment on a more sustainable footing
  • “It is very important that the Lower House reinstates the personal income tax, both as a source of revenue for the provinces and as a signal that Argentina is returning to more normal public policy settings”

Kate Moreton, analyst at Columbia Threadneedle:

  • “It proves that Milei has some governability and that his reform story has legs, but I expect us to kind of top out where we are” in terms of the levels at which bonds are trading, given how much reforms were already priced in
  • “My base case is that we will still need a restructuring at some point”
  • “This is kicking the can down the road further, but I think there’s still a lot of of risk here”

Citigroup Inc. strategists led by Donato Guarino:

  • The bill’s approval marks a “bittersweet win” for Milei’s administration as it has been in the works for the last six months, but has been “constantly diluted”
  • Remains overweight on Argentina’s bonds and reiterates call to go long on notes due 2030

Stuart Sclater-Booth, portfolio manager for emerging-markets debt at Stone Harbor Investment Partners:

  • While watered down, the bill demonstrates that Milei and team can in fact pass legislation, which is “important for credibility with investors and with likely negotiations with the IMF”
  • “The passage of the bill was a necessary, but not necessarily sufficient condition for the Argentina recovery. There is still progress to be made on normalizing FX, improving domestic credit and generating growth”
  • While the reforms facilitate some foreign investment, the lack of a normalized FX regime still presents some obstacles for “meaningful FDI”

David Austerweil, deputy portfolio manager for emerging-markets at Van Eck Associates Corp.:

  • The bill’s “passage was largely expected and due to the many compromises needed to gain its acceptance, it will not generate material fiscal savings”
  • “We currently have no position in Argentine sovereign bonds. With the likely passage of the Omnibus bill, the expected good news is likely behind us”
  • The pace of the country’s reserve accumulation has slowed and “even turned slightly negative this month”
  • “At the current overvalued level of the exchange rate and low interest rates, exporters can finance inventories and wait to sell them at a cheaper exchange rate and so reserve accumulation will likely continue to underwhelm. This should increase expectations of another FX devaluation and add further pressure on international reserves”
  • “For us to become more constructive on Argentine sovereign bonds, the exchange rate would need to move to a floating regime that restores competitiveness and allows for competitiveness to be retained without the need to future one-off devaluations”

©2024 Bloomberg L.P.

Milei’s team highlights fiscal surplus targets, exchange rate unification, and an end to money printing, with markets reacting to bond moves and reserve accumulation as signals of credibility.

Title:

Content: Milei Experiment

In the tangled web of Argentine politics and economics, one figure has emerged as both a lightning rod for controversy and a beacon of hope ~ President Javier Milei.

In the tangled web of Argentine politics and economics, one figure has emerged as both a lightning rod for controversy and a beacon of hope ~ President Javier Milei. His first 100 days in office have been marked by a whirlwind of fiscal manoeuvres, bold policy shifts, and commitment to economic reform. But as Argentina teeters on the edge of uncertainty, Mr Milei’s ambitious agenda raises questions even it offers solutions. At the heart of Mr Milei’s strategy lies a radical departure from conventional wisdom.

Brandishing a chainsaw as a symbol of fiscal austerity, he has pledged to slash spending and achieve a budget surplus, a feat unheard of in a country plagued by decades of fiscal mismanagement. His unorthodox approach has garnered both praise and scepticism, as Argentines grapple with the harsh realities of rising poverty and economic contraction. The cornerstone of Mr Milei’s economic vision is the elimination of money-printing and the pursuit of a unified exchange rate. By devaluing the peso and cutting interest rates, he aims to rein in inflation and restore confidence in the economy.

Yet the path to stability is fraught with pitfalls, as the spectre of recession looms large and investors remain wary of the government’s opaque monetary policies. While Mr Milei’s commitment to reform is commendable, his political isolation poses a significant obstacle to meaningful change. With little support in the Argentine Congress and a fragmented coalition, he faces an uphill battle. The recent defeat of a sprawling omnibus bill highlights the challenges ahead, as competing interests and entrenched political factions threaten to derail Mr Milei’s ambitions. Moreover, the uncertainty surrounding Argentina’s future monetary regime adds another layer of complexity to the equation. Will Mr Milei pivot towards dollarization or pursue a more gradual approach to currency reform? The lack of clarity on this front only serves to fuel investor anxieties and exacerbate economic volatility. Amidst these challenges, Mr Milei’s fate hangs in the balance. How much economic pain can Argentines endure before turning on their unconventional leader? And can Mr Milei muster the political support needed to navigate the treacherous waters of Argentine politics?

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In the end, the trajectory of Mr Milei’s presidency hinges on the delicate balance between economic resilience and political manoeuvring. Should he manage to maintain public support and secure crucial alliances, Mr Milei could emerge as a formidable force in next year’s mid-term elections. However, any slip in popularity could spell disaster for his ambitious agenda, opening the door for his adversaries to dismantle his presidency. Whether Mr Milei’s gamble will pay off remains to be seen. But one thing is certain. In a country accustomed to political upheaval and economic turmoil, the journey towards reform is bound to be fraught with uncertainty and adversity. Only time will tell whether Mr Milei’s vision for Argentina’s future will lead to prosperity or further hardship

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What economic issue did Milei want to address?

What issue did Milei want to address without printing money?

Forecasts anticipate a sharp 2024 contraction followed by potential recovery, with one projection of a 2.8% decline this year and prospects for a rebound if stabilization holds.

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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Risks are significant: international experience shows privatization and deregulation can exacerbate inequality, hollow out the middle class, and produce oligopolies without robust competition policy and social safeguards.

Title:

Content: A policy
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Privatization in Kurdistan: Sulaymaniyah privatizes the "writing of petitions" and wide complaints from lawyers
Category: CORDSTANIANS
Date: 2021-10-21T09: 52: 26 + 0000
The Iraqi economy in general and the Kurdistan region in particular has recently witnessed a set of variables, which significantly affected its tracks and directions, with the aim of making some financial and economic reforms to remedy the shortcomings and structural imbalances resulting from the rise of the dollar and damage to the Corona epidemic and the decline in the price of oil at the beginning of this year, which generated a clear imbalance in the production system in many sectors.
The imbalances in the productive system, especially the imbalance resulting from the control of the government sector and the weakness of its productive efficiency, are among the most important things that represent the cornerstone of the reform of the economy in societies.
The process of privatization has been used as one of the reform methods of the productive structure, especially in Iraq in general and the region in particular because they follow the system of the central economy and the public ownership of the state of all facilities and institutions, and where privatization in its entirety means the transfer of ownership of institutions from the ownership of government sectors to private ownership....
Negative effects of privatization
Economic activist Salam Abdullah told Shafaq News that "as much as privatization benefits, goals and positive results, it also has some of the negative effects that may result from the negligence of governments and the poor choice of activities, laws and timing that regulate the privatization process, and the absence of high standards and continuous monitoring, transparency and governance, and thus show its inherent danger, including; focusing on private interests neglecting the public interest. The monopoly of decisions of the public sector despite the existence of privatization in the case of partial leads to high inequality between the economy and society, and if the government depends on the private sector for everything makes the homeland easy to enter and control foreigners, increase inflation rates, and increase poverty rates at the national level."
Abdullah added that "privatization may cause the erosion and absence of the middle class, in addition to high rates of social and economic inequality," noting that "the privatization of government sectors may transfer us directly from one-person or one-party countries to the countries of the rule of businessmen and businessmen, and therefore power will be in the hands of a group of beneficiaries keen on their personal interests, and thus the absence of democracy."
Privatization of "petitions"
One of the simplest things that has been privatized recently is the privatization of "Petitions in government institutions", which prompted a number of Kurdish lawyers to file a lawsuit against the decision of the Ministry of Justice in the Kurdistan Regional Government after it privatized the profession of "Petition" before the courts and turned it to investment companies,
The protesters, during a press conference on Thursday in front of the Sulaymaniyah Court, criticized the decision of the Ministry of Justice despite the lack of approval of the Ministry of Finance and Economy in the Kurdistan Regional Government.
They also stressed that the costs of submitting petitions previously did not exceed three thousand dinars, while today it amounts to more than 15 thousand dinars per transaction, which reflected negatively on citizens.
Results of privatization
Economist Hawri Shukr believes in an interview with Shafaq News that the privatization decision carries with it a high degree of risk for governments, and the success of privatization programs depends largely on the clarity of the goals that the state aspires to achieve from transforming a number of its public institutions to the private sector, because the path of privatization is determined by these goals.
Shukr pointed out that some governments have taken privatization as a means to destroy economies and increase unemployment rates and economic backwardness by not choosing the right activities, timings or laws governing the process, on the contrary, there are some other governments that have taken privatization as a means to increase labor efficiency, introduce new technology, reduce burdens on their shoulders, reduce unemployment rates, improve services and goods and increase resources.
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How will Milei's reforms impact workers?

Governance capacity, clear goals, and targeted palliatives are critical to mitigate job losses and affordability shocks during transitions of this magnitude.

Title:

Content: Nigeria: Deregulation - Brace for N750/Litre Petrol When Subsidy Is Removed, Stakeholders Tell Nigerians

27 March 2023

Abuja and Lagos — As the federal government prepares to completely deregulate the downstream sector of the Nigerian oil and gas industry in the coming months, stakeholders in the sector have told Nigerians to be ready to pay as much as N750 per litre of petrol at filling stations. This was the highpoint of stakeholders' interventions during an online workshop, with the theme, "Deregulation of the Nigerian Downstream Sector: The Day After."

The workshop was organised by industry stakeholders, in collaboration with the African Refiners and Distributors Association (ARDA).

The downstream players, in conjunction with economic policy analysts and relevant government agencies, also outlined strategies and measures that should be deployed to ensure sustainable removal of petrol subsidy.

It emerged, yesterday, also, that Nigeria was struggling to find buyers for its crude oil, as strikes in the French refining sector and seasonal maintenance at plants elsewhere in Europe cut into the Organisation of Petroleum Exporting Countries (OPEC) producer's sales.

In another development, former Chief of Policy and Plans, Nigerian Navy, Rear Admiral Henry Babalola (rtd), called on the federal government to prosecute persons involved in oil theft for treason. Babalola expressed disappointment with the government's poor handling of the oil theft issue. He said government was not doing enough to eradicate the menace destroying the country's revenue base.

The federal government, through the Minister of Finance, Budget and National Planning, Mrs. Zainab Ahmed, recently hinted that it would end the wasteful petrol subsidy regime before the end of President Muhammadu Buhari's tenure on May 29, 2023.

But, in their separate interventions during the online workshop, stakeholders emphasised the need for the government to address the challenges facing the sector.

Participants at the workshop included representatives of the ARDA, Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Major Oil Marketers Association of Nigeria (MOMAN), Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), and Independent Petroleum Marketers Association of Nigeria (IPMAN).

Others were NNPC Retail Limited (NRL), Petroleum Retail Outlets Owners Association of Nigeria (PETROAN), Federal Competition and Consumer Protection Commission (FCCPC), PricewaterhouseCoopers (PwC), and CITAC Africa, among others.

Speaking at the session, National President of IPMAN, Mr. Chinedu Okoronkwo, who was represented by IPMAN's National Operations Controller, Mr. Mike Osatuyi, revealed that the marketers were in full support of the government's plan to embark on full deregulation of the downstream sector.

Okoronkwo warned Nigerians to prepare to pay up to N750 for every litre of petrol after the full implementation of the subsidy removal. He however, pointed out that the projected pump price was likely to drop to around N500 if the government encouraged the Central Bank of Nigeria (CBN) to provide foreign exchange for marketers at the official rate.

Okoronkwo also urged the government to channel expected savings from subsidy removal to provision of palliatives for the masses. He advised the government to be alert and sensitive to resentment from Nigerians.

The industry stakeholders at the workshop called on the government to implement appropriate palliatives in the form of public transportation and freight of agricultural produce, ensure transparent and effective communication, and improve access to foreign exchange. They also urged the government to address issues around trade finance, guarantee strategic stock, and provide access to crude oil for refineries ahead of the plan to embark on the total removal of petrol subsidy.

They stressed the need for operators in the industry to institutionalise professionalism in the midstream and downstream petroleum sectors ahead of the take-off of full deregulation.

In his goodwill message, Chief Executive Officer, NMDPRA, Mr. Farouk Ahmed, told industry players that the authority would allow a free market-pricing regime to prevail in the petroleum marketing business in the country once the sector was fully deregulated.

National President of the Nigerian Association of Road Transport Owners (NARTO), Lawal Yusuf Othman, stated that the full deregulation of the downstream sector and complete removal of petrol subsidy would introduce a mix of opportunities and challenges into the operating environment.

In his presentation, Managing Director, CITAC Africa, Mr. Gary Still, explained that market liberalisation meant the removal of government subsidies and price controls on petroleum products and allowing market forces to determine the price and supply of petroleum products.

Still advised the Nigerian government to completely deregulate the downstream oil sector and free the market from the existing price fixing and control to allow investments to flow into the sector.

Fiscal Policy Partner and Africa Tax Leader at PwC, Mr. Taiwo Oyedele, charged the government and the regulators to identify potential pitfalls that could trigger resentment from citizens before, during, and after the removal of the petrol subsidy.

Oyedele said deliberate public sensitisation, industry engagement, and collaboration with civil society organisations were needed to aid public buy-in during the implementation of full deregulation by the government. He added that in the course of implementation of the policies, the government's interpretation of its strategy must be issues-based and not confrontational.

Technical Consultant to the Executive Vice Chairman/Chief Executive Officer of FCCPC, Mrs. Morayo Adisa, in her presentation, emphasised the need for the industry regulator to establish quality and safety standards for petroleum products, including fuel quality standards, safety regulations for storage and transportation, and environmental regulations.

Chairman of MOMAN and Managing Director of Ardova Plc, Mr. Olumide Adeosun, stressed that the virtual workshop was aimed at addressing key challenges and outlining strategies to ensure a sustainable future for the petroleum downstream sector. Adeosun added that safeguarding consumer interest in a deregulated environment was also underscored.

The workshop offered the industry regulator and all players across the midstream and downstream value chain the opportunity to deliberate on measures that needed to be put in place ahead of the full implementation of the Petroleum Industry Act (PIA) 2021.

The workshop provided data-driven insights into the sector's growth potential, as stakeholders emphasised the need for continuous industry engagement, collaboration, and public sensitisation to aid public buy-in on new policies by the government.

It emphasised the importance of connecting to regional markets, positioning Nigeria as the regional refining hub, and fostering relationships with international service providers, including rating agencies, finance and governance institutions, and aligning with the goals of the Conference of the Parties to the United Nations Convention on Climate Change (COP).

Ultimately, the collaborative workshop provided a platform for stakeholders to share knowledge and develop strategies to ensure the Nigerian Petroleum Downstream Industry remained a strong, competitive force, while transitioning to a more sustainable future.

25 Nigerian Crude Shipments Struggle to Find Buyers in Europe as French Strike Continues

Nigeria is struggling to find buyers for its crude oil as strikes in the French refining sector and seasonal maintenance at plants in Europe cut into the OPEC producer's sales.

Between 20 and 25 shipments of Nigerian crude for April loading were still searching for buyers, according to four traders specialising in the West African market. That was a much weaker position than normal for this time of the month -- when trade should be moving on to May's barrels -- and the prices the shipments could fetch were dropping, they said. Each cargo was about a million barrels of crude, Bloomberg reported.

Typically, one of Nigeria's biggest buyers, France, took an average of 110,000 barrels a day of Nigeria's oil over the past year, according to tanker-tracking data compiled by the medium.

But that demand shrivelled this month, with France's overall crude imports dropping by half in March as the nationwide dispute over pension reforms escalated, according to Wood MacKenzie.

Well over 80 per cent of France's 1.1 million-barrels-a-day processing capacity is halted or in the process of shutting down because of the industrial action, data compiled by Bloomberg show.

In addition to the impact of the strikes, other plants in Europe are also buying less crude because of seasonal maintenance, according to the traders.

Capacity is offline at some typical destinations for Nigerian crude, such as Spain's San Roque refinery and Italy's Sarroch plant, Bloomberg said. Facilities that have halted capacity for work also include Shell's Pernis refinery near Rotterdam, Europe's biggest plant.

"The Nigerian backlog is a combination of higher freight costs, lower tanker availability -- specifically into Europe -- as well as lower overall demand for West Africa light sweet as crude from other regions is deluging markets," said Viktor Katona, lead crude analyst at Kpler.

Northwest Europe's reduced buying matters for West Africa because alternative outlets are limited, traders said.

Mediterranean refiners can choose to skip Nigerian supply in favour of cheap North African barrels that ship more quickly to the region, or they can process some of the large volumes of US West Texas Intermediate crude that have been arriving in Europe in recent months, the report said.

Long-haul buyers, like Indian Oil and Indonesia's Pertamina, have been taking more discounted Russian volumes this year, easing their need for Nigerian supply. China's UNIPEC favours processing oil from Angola, where only around five April shipments are still available, the traders said.

Another driver of the unsold glut has been Nigeria's revival of crude production that was shuttered in recent months by theft and technical issues, such as the nation's Bonny Light stream.

Nigerian export capacity may now exceed what the market needs in April and May, according to Katona, as more oil tankers have diverted away from France and strikes disrupt the country's petroleum industry.

Crude oil carriers, Primero and Elisabeth Maersk, had both been anchored off Le Havre until Wednesday, before changing their destination to Rotterdam, according to ship tracking data compiled by Bloomberg. That was on top of several refined fuel carriers that moved away from the French port recently to go elsewhere.

The effects of French strikes to protest against pension reform are rippling across global oil markets. The nation is estimated to see a hit of about 500,000 barrels a day to the amount of crude that gets turned into fuels in March.

France released strategic stockpiles of oil products this month to avoid fuel shortages as the strikes blocked fuel movements from many local refineries.

French transport networks, oil refineries and schools have been hit by widespread disruption, as workers staged a national strike to protest an increase in the retirement age that was pushed through parliament without a vote.

Sporadic demonstrations had popped up in Paris and other cities after the French government forced the bill through last week, being the ninth day of strikes since the bill was introduced in January.

Only two out of 14 metro lines in Paris now operate a normal service even as the nationwide strike has also affected air traffic, with 30 per cent of flights impacted at Paris Orly airport.

Unionised workers blockaded a major oil refinery in Normandy and another one in Fos-sur-Mer in the south of France, according to a government spokesperson.

"We are intervening in a targeted manner to unblock oil storage tanks that are blocked by demonstrators," the Minister of Energy Transition, Agnès Pannier-Runacherin, said in a statement.

"If the strike is a fundamental constitutional right, blockading is not one... The police is mobilised in difficult conditions and has my full support," the statement said.

The government's plan to raise the retirement age for most workers by two years was opposed by huge numbers of people. But despite protests that drew more than a million people onto streets across the country, President Emmanuel Macron's government did not back down.

It rammed the legislation through the French National Assembly last week using a constitutional clause that allows the government to bypass a vote.

The country's generous pension system and early retirement have been a point of pride since they were enacted after World War II. Under the new law, the retirement age for most workers will be 64, still one of the lowest in the industrialised world.

The 25 million barrels of crude oil, which are seeking buyers in Europe, are more than half of the country's production that was roughly 40 million barrels in February.

Try Oil Thieves for Treason, Ex-Naval Policy Chief Urges FG

Babalola called on the federal government to try criminals involved in oil theft for treason.

Speaking at a seminar organised by the Defence Correspondents Association of Nigeria (DECAN), with the theme, "Achieving Presidential Mandate in Curbing Oil Theft and Securing the Nation's Wealth," in Abuja, Babalola recommended that those caught stealing the country's crude should be charged with treason. He called on the government to identify the supply chain of oil theft and the individuals involved, and bring the culprits to justice.

He said, "It is high time the government treated the menace with urgency. Oil theft will destroy the nation's economy should the government fail to act fast."

In his remarks, Minister of State for Petroleum Resources, Timipre Sylva, said the order given by President Muhammadu Buhari on the eradication of oil theft was yielding result.

Sylva stated, "Before that directive, oil production went down to 900, 000 barrels per day, but today it is gradually picking up and oscillating between 1.5 million and 1.6 million barrels per day."

Represented by his aide, Horatius Egua, Sylva said the problems confronting the oil and gas industry were caused by years of neglect by past administrations.

He said, "The oil and gas industry is the most complex sector in this country. That is why some allege that in the sector, the more you look, the less you see. However, in the last 12 months, the order by the president to end oil theft in the country is beginning to yield results.

"Apart from stealing, past governments did not invest in infrastructure in the oil and gas sector for a very long time. You find pipelines rupturing.

"We could not get what we wanted, but this administration has done much to restore infrastructure.

"The president directed that the refineries must work and as it is presently, the Port Harcourt refinery is at 65-70 per cent. Hopefully, before the end of the second quarter of the year, I believe something will come out of that refinery."

In his remarks, Permanent Secretary, Ministry of Defence, Dr. Ibrahim Kana, disclosed that the country's effort to achieve the presidential mandate handed to the ministry was successful due to the adaptation of synergy among the tri-services, especially in planning, coordination, and implementation of actionable programmes and projects.

Kana, who was represented by Director, Army, in the ministry, Mr. Sunday Attah, said, "No doubt, the Nigerian Armed Forces and agencies of the ministry now enjoy wider public support and understanding, which have resulted in positive attitudinal change among Nigerians.

"Nigerians are now very familiar with the efforts of President Muhammadu Buhari in securing the country and guaranteeing the safety of Nigerians against banditry, kidnapping and terrorism."

The permanent secretary commended Buhari for the special attention accorded the ministry in providing for the needs of the armed forces of Nigeria, promptly, and the guidance in the discharge of "our constitutional responsibilities."

He stated, "Mr. President has ensured that the tri-services are rebranded with modern equipment as well as military and civilian personnel are being trained and retrained regularly, to enhance proficiency and efficiency in service delivery.

"Wellbeing and welfare of personnel by the federal government have continued to provide ideal accommodation for the comfort of soldiers and their families."

Kana stated that recently, the ministry commenced the upgrading of primary and secondary schools, in addition to ensuring security and safety of teachers, pupils and the school environment.

He said, "On this matter of oil theft before us as a nation, I call on all hands to be on deck, especially the media, in the fight against this deadly menace.

"It is necessary to remind you that the expectations of Nigerians on the media is high and as such, you must live up to that expectation. Every story must be accurate, verifiable, credible and, most importantly, be relayed with high sense of patriotism and professionalism."

At the event, Chief of Defence Staff, General Lucky Irabor, was represented by Chief of Training and Operations at Defence Headquarters, Major General Solomon Udounwa.

Chief of Naval Staff, Vice Admiral Awwal Gambo, was represented by Director of Operations, Nigerian Navy, Rear Admiral OK Oluwagbire,.

In attendance also were Director of Defence Media Operations, Major General Musa Danmadami, and Director, Naval Information, Commodore Ayo-Vaughan.

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In sum, Milei’s libertarian program—anchored in deregulation, privatization, fiscal shock therapy, and prospective dollarization—has begun to restructure Argentina’s state and economy while intensifying social conflict and testing institutional checks amid extraordinary executive powers.

How will Milei's reforms impact workers?