Javier Milei, the President of Argentina, has introduced a series of economic reforms aimed at overhauling the country's economy, including slashing state spending and reducing the fiscal deficit.

Milei's economic policies aim to break China's battery supply chain dominance, and Argentina's vast lithium reserves are attractive to investors such as Elon Musk.

The International Monetary Fund has endorsed Milei's shock therapy for Argentina's economy, which includes drastic cuts to public spending, and has provided a $4.7 billion bailout package to support the reforms.

Milei plans to introduce a bill to penalize deficit financing by issuing money and proposes to privatize state-owned entities and weaken labor protection, sparking nationwide protests and opposition from labor unions.

The president's economic measures have boosted the market but hurt the poor, with 40% of Argentina's population living in poverty and inflation standing at 211% annually, the highest in 32 years.

Milei's reforms may cause economic contraction this year, with the IMF estimating a 2.8% economic contraction in Argentina, and may also impact relationships with other countries.

The government faces opposition in Congress, and Milei has minority support, which may hinder the implementation of his reforms.

Milei's economic reform bill aims to overhaul Argentina's economy, including an austerity drive and spending cuts, and the government expects the bill to be approved in Congress.

The fiscal section was removed from the bill due to opposition, and the government aims for a zero deficit this year.

Milei proposes dollarization as Argentina's sole legal tender, which would replace the peso and potentially stabilize the economy.

He advocates for sound money and free markets, and his platform prioritizes private property and individual freedom.

Milei plans to eliminate the central bank and slash public spending significantly, which are key components of his economic reform plan.

Inflation stands at 138 percent in September, and Milei needs to address this issue as part of his economic reforms.

Milei promises to abandon the peso for the dollar and shut down the central bank, which are key steps in his dollarization policy.

Dollarization may cause hyperinflation, and the IMF calls for a quick economic restart to address Argentina's economic challenges.

Argentina's inflation rose over 140% yearly, and Milei received 56% of the votes, indicating a strong mandate for his economic reforms.

The government is considering shielding poor households from high living costs by providing a monthly grant, and has committed to providing support to vulnerable populations.

Milei's administration is focused on avoiding hyperinflation through a hyper-orthodox adjustment, with the effort weighing 60% on politicians and 40% on the private sector.

The government plans to restructure the currency exchange market and the Central Bank as part of its economic reforms.

Javier Milei vows to push for economic reform in Argentina, including slashing state spending and reducing the fiscal deficit.

Milei's economic reforms face delay due to the fragmented Argentine Congress, which may hinder the implementation of his policies.

The dollarization policy requires Congress approval and an estimated US $35-50 billion, and may take up to two years to implement.

Milei's government needs US dollars to replace pesos, and the interest rate policy would be controlled by the US Federal Reserve under the dollarization plan.

Argentina's economy would be vulnerable to US dollar shocks, and Milei admitted that his plan could have painful internal adjustments.

Milei's economic reform bill aims to overhaul Argentina's economy, including an austerity drive and spending cuts, and the government expects the bill to be approved in Congress.

The fiscal section was removed from the bill due to opposition, and the government aims for a zero deficit this year.

Milei proposes dollarization as Argentina's sole legal tender, which would replace the peso and potentially stabilize the economy.

He advocates for sound money and free markets, and his platform prioritizes private property and individual freedom.

Milei plans to eliminate the central bank and slash public spending significantly, which are key components of his economic reform plan.

Inflation stands at 138 percent in September, and Milei needs to address this issue as part of his economic reforms.

Milei promises to abandon the peso for the dollar and shut down the central bank, which are key steps in his dollarization policy.

Dollarization may cause hyperinflation, and the IMF calls for a quick economic restart to address Argentina's economic challenges.

Argentina's inflation rose over 140% yearly, and Milei received 56% of the votes, indicating a strong mandate for his economic reforms.

The government of Argentina, under President Javier Milei, aims to avoid hyperinflation through the implementation of a hyper-orthodox adjustment.

The Central Bank of Argentina is undergoing restructuring as part of the government's efforts to stabilize the economy.

The government is focusing on creating a sincere exchange market, with efforts weighing 60% on politicians and 40% on the private sector.

In an effort to address the economic challenges, some provinces in Argentina have announced spending cuts and declared economic emergencies.

The government has also increased export duties, which has raised concerns among provinces.

To mitigate the effects of the reforms, the government of Ethiopia, in a different context, has promised to subsidize fuel and raise the salaries of civil servants.

The Ethiopian government's reforms aim to introduce a market-based exchange rate determination, which may significantly increase the cost of living for many households.

In Cuba, the government has promised intervention to halt the slide of the peso, which has lost less than 10% of its 2019 purchasing power.

The Cuban government has planned measures to tackle the weakening peso, including a major monetary reform.

In Zimbabwe, the government will defend the local currency's value and has developed a Transitional Stabilisation Programme to guide reforms.

The government of Zimbabwe has also developed a National Development Strategy 1 to guide the country's reforms and has compensated pensioners for lost savings when the Zimbabwe dollar was reintroduced.

The government of Cuba has increased the minimum wage by 500% to 87 USD and the maximum wage to almost 400 USD as part of its currency reform.

The Cuban government prioritizes finding a solution to inflation and helping vulnerable people, with a rations booklet providing a small monthly ration of essential goods to 11.2 million inhabitants.

Javier Milei, Argentina's new president, has introduced radical economic reforms, including plans to slash state spending and reduce the fiscal deficit, which may have significant implications for the country's relationships with other nations.

Milei's economic reforms aim to overhaul Argentina's economy, with a focus on austerity measures and spending cuts, which have received support from the International Monetary Fund.

The reforms may cause economic contraction this year, with the IMF estimating a 2.8% economic contraction in Argentina, and may also impact relationships with other countries.

Milei's government plans to privatize state-owned entities and weaken labor protection, which has sparked nationwide protests and opposition from labor unions.

The president's economic measures have boosted the market but hurt the poor, with 40% of Argentina's population living in poverty and inflation standing at 211% annually, the highest in 32 years.

Milei's reforms may affect Argentina's relationships with China and the European Union, particularly given his plans to reduce China's influence in the country and his anti-communist stance.

Argentina's relationships with other countries in the region, such as Brazil, may also be impacted, although Milei's foreign minister has dismissed the possibility of a rupture with these nations.

The government may face diplomatic challenges due to Milei's reforms, particularly given his plans to eliminate the central bank and replace the local currency with the US dollar.

Milei's economic reforms have received support from international free-marketeers, and his government is confident that Congress will approve the reforms.

However, the president faces opposition from lawmakers and street protests, and his coalition lacks a majority in the Senate, which may hinder the passage of his reforms.

The US is Argentina's biggest investor and has significant influence over the International Monetary Fund, which Argentina owes $42 billion, and Milei has sought US support for his economic overhaul.

Milei's trip to the US is his third in four months as president, and he has met with Elon Musk to discuss economic reforms and investment opportunities in Argentina's vast lithium reserves.

The US is exploring investment opportunities in Argentine lithium, which could help reduce China's dominance in the battery supply chain.

Milei's government may uncover corrupt practices with Chinese officials, and the new government may tear up the Belt and Road Initiative agreement, which could further strain relationships with China.

Overall, Milei's economic reforms have the potential to significantly impact Argentina's relationships with other countries, particularly in the region, and the government will need to navigate potential diplomatic challenges and opportunities arising from these reforms.

Javier Milei, the President of Argentina, has introduced a series of economic reforms aimed at overhauling the country's economy, including slashing state spending and reducing the fiscal deficit.

Title:

Content: Argentine President Pledges Economic Reform in a Passionate Speech to Congress | Deutsche Welle Introduces Germany | DW | 02.03.2024
1.
Inhalt
2.
Navigation
3.
Weitere Inhalte
4.
Metanavigation
5.
Suche
6.
Choose from 30 Languages
The political climate of the times
Argentine President vows to push for economic reform
In a speech to the National Assembly on Friday, Argentina's new president, Miguel Millay, vowed to continue to push for economic reform, whether or not he has the support of the National Assembly.
He said that if the economic model is not transformed, "Argentina has no future."
Milley told lawmakers he would continue to push through reforms with or without congressional support.
Argentina ’ s new liberal president, Javier Milei, delivered a passionate speech to Congress on Friday (March 1).
He said he "will continue to push" for economic reform.
The Argentine leader, who describes himself as an "anarcho-capitalist," promised to slash state spending and reduce the government's fiscal deficit.
“We ’ re going to completely change this country. ”
Millet told lawmakers that he would continue to push ahead with reforms, whether or not he had the support of Congress.
He said "we will not back down, we will continue to move forward...
Whether it is through laws, presidential decrees or amending regulations, "he added," We will change this country forever...
with or without the support of political leaders, with or without all the legal resources of the executive branch ".
"I ask for patience and trust... It will take a while for us to see the results of the economic restructuring and the reforms that are being implemented," he added.
If the economic model does not change, "Argentina has no future"
Millay said he would introduce a bill that would penalize anyone — including the president — who financed the deficit by issuing additional money.
When he takes office, Mile will devalue the peso by about half.
"If we don't fundamentally change the economic model, then Argentina has no future," he said.
How will Argentina choose between China and the EU?
Milley's speech was repeatedly interrupted by cheers from supporters, who told Congress they would face "another animal" if they opposed his reform efforts.
Miley's Shock Therapy
After taking office in December last year, Millet issued decrees repealing or amending hundreds of laws aimed at curtailing the power of trade unions and deregulating state interference in the economy.
However, his claims met with resistance, and the court issued a ruling halting these measures.
Miller proposed a comprehensive reform plan, seeking to privatize state-owned entities and weaken labor protection.
The bill was voted down by lawmakers last month.
It includes the power to delegate to the executive branch for one year and the power to pass laws by decree on the basis of "economic emergencies".
Millet ’ s shock economic measures boosted the market, but sparked nationwide protests and strong opposition from labor unions.
Trade unions say the reforms will hurt the poor.
Despite his harsh words to lawmakers, the Argentine president struck a more conciliatory tone in his interactions with governors, proposing a 10-point “social contract ” agreed by May 25 that includes a“ rediscussion ” of the current tax distribution between the federal government and provincial governors.
Mire and the provincial governors have also been at loggerheads over the issue of funding cuts.
This week, when the governor threatened to cut off energy supplies to the rest of Argentina due to a funding dispute, the dispute heated up.
(Reuters, Associated Press, Agence France-Presse)
© 2024 Deutsche Welle Copyright Notice: All content in this article is protected by copyright law and may not be used without special permission from Deutsche Welle.
Any misconduct will lead to recovery and criminal prosecution.

What issue did Milei want to address without printing money?

Milei's economic policies aim to break China's battery supply chain dominance, and Argentina's vast lithium reserves are attractive to investors such as Elon Musk.

Title:

Content: BUENOS AIRES, Argentina — President Javier Milei of Argentina kicked off a visit Wednesday to the United States, where he'll meet with tech billionaire Elon Musk, as his government seeks an infusion of cash to overhaul Argentina's embattled economy.

The populist president started his four-day trip in Miami, home to one of the largest populations of Argentines in the U.S., where he received an honor from the Jewish community Wednesday at an Orthodox synagogue. Milei will meet with Musk on Friday in Texas, his spokesperson said, where he will also tour a factory for Tesla, Musk's electric car company.

Milei's third trip to the U.S. in merely four months as president comes as he reshapes Argentine foreign policy in line with Washington. Standing beside Gen. Laura Richardson, head of the U.S. Southern Command, at the southernmost tip of South America last week, Milei vowed to boost the nations' ''strategic alliance'' — underscoring how he sees U.S. support as vital to the economic overhaul on which he has staked his presidency.

''We took advantage to present a new foreign doctrine for Argentina,'' Milei wrote Wednesday on social media platform X of his meeting with Richardson. In the same post, apparently directed at Musk — a self-declared free speech absolutist — Milei said he promoted ''true freedom of expression'' and slammed journalists critical of his administration as trying to ''stop us from speaking."

''We are not going to remain silent in the face of slander, insult or defamation,'' he wrote.

Milei's plan to drastically cut public spending has inflicted economic pain and encountered resistance in a nation where annual inflation tops 276%. On Wednesday, police forcibly dispersed anti-government protestors blocking a main Buenos Aires artery.

Not only is the U.S. the biggest investor in Argentina, it also has the most influence over the International Monetary Fund, to which Argentina owes $42 billion. The IMF has endorsed Milei's shock therapy for Argentina, agreeing to disburse $4.7 billion from a bailout package the country took out six years ago.

The State Department's investment climate statement last year noted ''capital controls, trade restrictions, and price controls'' as factors hampering investors in Argentina. Milei has vowed to roll back those interventionist policies with market-oriented changes favored by business leaders, like Musk, one of the world's richest men who leads rocket company SpaceX, social media platform X and Tesla.

Milei and Musk — who both share a brash personality-driven style and distaste for government overreach — have expressed mutual admiration. Ahead of his inauguration last December, Milei praised Musk as an ''icon of freedom in the world." Musk gushed over Milei's speech lambasting socialism at the World Economic Forum in Davos, Switzerland, commenting ''So hot'' with a meme of a couple having sex while watching Milei speak.

With its vast lithium reserves, Argentina has much to offer Musk, a dominant player in the electric auto industry who has dubbed the metal, an indispensable ingredient in electric car batteries, "the new oil."

Milei's free-market policies have raised hopes in the U.S. that the metal and other badly needed raw materials can be extracted closer to the U.S., breaking China's dominance of the battery supply chain. The Biden administration said it was exploring investment opportunities in Argentine lithium earlier this year.

The International Monetary Fund has endorsed Milei's shock therapy for Argentina's economy, which includes drastic cuts to public spending, and has provided a $4.7 billion bailout package to support the reforms.

Milei plans to introduce a bill to penalize deficit financing by issuing money and proposes to privatize state-owned entities and weaken labor protection, sparking nationwide protests and opposition from labor unions.

How will Milei's reforms impact workers?

Who has opposed Milei's proposed layoff order?

The president's economic measures have boosted the market but hurt the poor, with 40% of Argentina's population living in poverty and inflation standing at 211% annually, the highest in 32 years.

Title:

Content: Argentina’s New Libertarian President, Javier Milei, Is on a Collision Course With His Country’s Powerful Labor Unions

Unions have promised a ‘total strike’ across the country Wednesday to protest Mr. Milei’s efforts to rein in a once-powerful central government and put Argentina on a path to prosperity.

Argentina’s new Libertarian president, Javier Milei, is on a collision course with his country’s powerful labor unions, a conflict that will come to a head Wednesday when the unions have promised a nationwide “total strike” to protest austerity measures enacted by Mr. Milei since he took office last month.

Union leaders speaking to the Financial Times say they expect as many as 200,000 people to take to the streets of Buenos Aires because the new president is “breaking the social contract” by passing an emergency decree that rolled back worker protections, deregulated many industries and began allowing employees to opt out of union-provided health care.

Around 40 percent of the country’s 13 million workers belong to labor unions that have for decades enjoyed considerable political clout under successive governments headed by leaders of the Peronist movement launched by strongman Juan Peron in the 1950s. That power evaporated overnight when Mr. Milei moved into the Casa Rosada, Argentina’s equivalent of the White House, on December 10.

The leader of Argentina’s Construction Workers Union, Gerardo Martínez, told the Financial Times that he hopes the strike —the earliest ever faced by a newly elected president — will force Mr. Milei to roll back some of his reforms and come to the bargaining table with the unions.

“We are aware that inflation [needs to come down.] We are embarrassed to have a country with this level of poverty,” Mr. Martínez said. “But we can’t accept that the cost of reaching economic stability falls solely on the backs of workers and the middle class.”

The tousle-headed Mr. Milei, who famously brandished a chainsaw during the campaign while promising to slash government spending and eliminate entire departments, has made good on some of those promises early in his tenure. He has slashed energy and transport subsidies and sent a bill to Congress that would privatize many of Argentina’s poorly managed state-run enterprises.

Mr. Milei already has backtracked on other issues, however, in an effort to secure the support of moderates in Congress, including taking off the table a plan to privatize the state-run oil giant, YPF.

While perhaps not exactly enamored by some of his fellow countrymen, Mr. Milei has become the darling of international free-marketeers since his full-throated defense of capitalism and the power of entrepreneurship to lift countries out of poverty during the annual World Economic Forum at Davos last week.

In a speech that has since been translated into dozens of languages, Mr. Milei stunned the normally left-leaning audience at Davos by blaming the decades of economic malaise that has plagued Argentina on the “collectivist” policies of his predecessors. Government, he said, is not the solution to what ails societies. Government is the problem, he said.

“The case of Argentina is an empirical demonstration that no matter how rich you may be, how much you may have in terms of natural resources, how skilled your population may be, how educated, or how many bars of gold you may have in the central bank — if measures are adopted that hinder the free functioning of markets, competition, price systems, trade and ownership of private property, the only possible fate is poverty,” he said.

As much as 40 percent of Argentina’s population is described as living in poverty, and inflation is currently running at a rate of 211 percent annually, the highest rate in 32 years. In Latin America, only Venezuela faces worse inflation than Argentina.

© 2024 The New York Sun Company, LLC. All rights reserved.

Use of this site constitutes acceptance of our Terms of Use and Privacy Policy. The material on this site is protected by copyright law and may not be reproduced, distributed, transmitted, cached or otherwise used.

Sign in or  Create a free account

By continuing you agree to our Privacy Policy and Terms of Use

As of 2024, what are the statistics regarding poverty?

annual inflation rate of 211% is highest in 32 years

Milei's reforms may cause economic contraction this year, with the IMF estimating a 2.8% economic contraction in Argentina, and may also impact relationships with other countries.

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)

Advertisement

The government faces opposition in Congress, and Milei has minority support, which may hinder the implementation of his reforms.

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)

Advertisement

Who has opposed Milei's proposed layoff order?

Milei's economic reform bill aims to overhaul Argentina's economy, including an austerity drive and spending cuts, and the government expects the bill to be approved in Congress.

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)

Advertisement

The fiscal section was removed from the bill due to opposition, and the government aims for a zero deficit this year.

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)

Advertisement

Milei proposes dollarization as Argentina's sole legal tender, which would replace the peso and potentially stabilize the economy.

Title:

Content: Argentina’s Javier Milei Attempts To Turn Back the ‘Pink Tide’

Election Sunday could elevate a radical libertarian, free marketeer, and advocate of sound money to the presidency of the country whose name means money.

It’s too soon to say whether tomorrow the arch-libertarian Javier Milei will be able to convert his place from leading contender to become Argentina’s president-elect. There might have to be a runoff. It’s not too soon, though, to savor the prospect of a free marketeer and sound money advocate acceding to the Pink House. Particularly in the land that spawned Perónism and whose name — Argentina —  means money.

The anarcho-capitalist is campaigning with a chainsaw, vowing to upend Argentina’s establishment, which he describes as a “political caste” of “useless parasites.” It’s “no time for nice words and good manners,” he avers, noting that, as the Wall Street Journal reports, “the caste is trembling.” The anger, if strident, is understandable, with Perónism, a leftist hybrid of nationalism and statism, having ravaged the once-thriving Argentine economy.

Poverty stands at 40 percent in a country that once vied with America as a contender for economic superpower status. Inflation is running at a catastrophic 138 percent, devastating Argentines’ buying power and driving a black market in dollars. No wonder Mr. Milei wants to ditch the country’s debased peso, which he calls “a currency emitted by Argentine politicians” that isn’t even “worth excrement,” because the pesos can’t be used as fertilizer.

The real path toward restoring sound money in Argentina would be to restore a peso convertible into gold or silver, as opposed to merely adopting a fiat dollar. Yet Mr. Milei’s proposed “dollarization” — making the greenback Argentina’s sole legal tender — is something of a step in the right direction. It would mark a sea change for a country that has been notorious for its lax monetary and fiscal policies after it abandoned its gold standard.

That was in 1929. Since then, Argentina’s currency has fallen in tandem with the country’s economic prospects. As the 20th century began, both America and Argentina “were young, dynamic nations with fertile farmlands and confident exporters,” journalist and historian Alan Beattie has observed, and “Argentina was among the 10 richest economies in the world.” Emigrants fleeing Europe were often torn, he noted: “Buenos Aires or New York?”

Argentina’s prospects dimmed during the Great Depression. Instead of following America’s path by embracing global trade, Argentina fell prey to the siren song of Perónism. This regime of corporate cronyism and big government, as economist Lawrence Reed explains, “expanded the power of labor unions, spent lavishly on welfare schemes and waged class warfare against the rich,” and drove Argentina’s economy into the ditch.

One of the most insidious aspects of Perónism is how it inverted the formula of “negative rights.” These are enshrined in America’s Constitution to protect against the predations of the government, as seen in, say, the First Amendment, which opens by saying “Congress shall make no law . . .” By contrast, Eva Perón justified the socialist takeover of the economy and a bloated welfare state by saying “Where there’s a need, there’s a right.”

Mr. Milei is, in the Financial Times’ telling, running on a platform that is as far from Perónism as it gets, calling for “unfettered free markets,” free trade, and “giving primacy to private property and individual freedom.” The fact that he has named his dogs after economists like Milton Friedman, Robert Lucas, and Murray Rothbard suggests he has an awareness that political liberty is not possible without economic liberty.

Whether or not Mr. Milei wins the presidency in Sunday’s first round of voting, as he suggests is a possibility, or at all, his candidacy is a bright spot on a continent that has lately drifted toward the shoals of neo-Marxism. Observers call it a “pink tide.” The Argentines have the opportunity at the ballot box to buck this leftward trend, choosing sound money and individual liberty and putting their country on the path to prosperity it left decades ago.

© 2023 The New York Sun Company, LLC. All rights reserved.

Use of this site constitutes acceptance of our Terms of Use and Privacy Policy. The material on this site is protected by copyright law and may not be reproduced, distributed, transmitted, cached or otherwise used.

Sign in or  Create a free account

By continuing you agree to our Privacy Policy and Terms of Use

What economic issue did Milei want to address?

He advocates for sound money and free markets, and his platform prioritizes private property and individual freedom.

Milei plans to eliminate the central bank and slash public spending significantly, which are key components of his economic reform plan.

Title:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

criticism of government spending
closing the central bank

Inflation stands at 138 percent in September, and Milei needs to address this issue as part of his economic reforms.

Title:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

What economic issue did Milei want to address?

Milei promises to abandon the peso for the dollar and shut down the central bank, which are key steps in his dollarization policy.

Title:

Content: Javier Milei is elected president of Argentina.
Libertarian Javier Milei, who won the presidency of Argentina on Sunday, promised a radical overhaul to address decades of policy mismanagement, but his radical and bold ideas also raised doubts.
According to the official electoral body, after Sunday ’ s runoff, 99% of the votes were counted, and Milei received 56% of the votes, beating the 44% of the votes of Sergio Massa, the current economy minister.
The number of votes he won was unexpected, and Massa conceded the defeat before the results were announced.
Speaking to Argentines on Sunday night, Milei said his victory marked the beginning of "the reconstruction of Argentina."
“Today Argentina ’ s decline is beginning to end, ” he said.
“Today, the pattern of poverty in a country that is everywhere is over, one that benefits only a part of the population, while the majority suffers. ”
In the capital, Buenos Aires, hundreds of Milei ’ s supporters honked their horns, set off fireworks and sang his popular song against the political elite, “Get them all off! ”.
Milei ’ s main campaign promises include abandoning the peso and switching to the dollar and shutting down the central bank, while slashing public spending in an attempt to get the country of 46 million people out of trouble.
However, Milei ’ s shock therapy could also set Argentina on an uncertain path, with some economists warning that dollarizing the $622 billion economy while international reserves run out could plunge the South American country into another round of hyperinflation.
At the same time, IMF officials called on the next administration to restart the economy quickly, stressing that there was no time for progressive policies.
Argentina last week released its latest October inflation figures, which rose more than 140% a year to a 32-year high.
Milei will take office on December 10.
Related Posts

dollarizing the Argentinian currency
closing the central bank

Dollarization may cause hyperinflation, and the IMF calls for a quick economic restart to address Argentina's economic challenges.

Title:

Content: Javier Milei is elected president of Argentina.
Libertarian Javier Milei, who won the presidency of Argentina on Sunday, promised a radical overhaul to address decades of policy mismanagement, but his radical and bold ideas also raised doubts.
According to the official electoral body, after Sunday ’ s runoff, 99% of the votes were counted, and Milei received 56% of the votes, beating the 44% of the votes of Sergio Massa, the current economy minister.
The number of votes he won was unexpected, and Massa conceded the defeat before the results were announced.
Speaking to Argentines on Sunday night, Milei said his victory marked the beginning of "the reconstruction of Argentina."
“Today Argentina ’ s decline is beginning to end, ” he said.
“Today, the pattern of poverty in a country that is everywhere is over, one that benefits only a part of the population, while the majority suffers. ”
In the capital, Buenos Aires, hundreds of Milei ’ s supporters honked their horns, set off fireworks and sang his popular song against the political elite, “Get them all off! ”.
Milei ’ s main campaign promises include abandoning the peso and switching to the dollar and shutting down the central bank, while slashing public spending in an attempt to get the country of 46 million people out of trouble.
However, Milei ’ s shock therapy could also set Argentina on an uncertain path, with some economists warning that dollarizing the $622 billion economy while international reserves run out could plunge the South American country into another round of hyperinflation.
At the same time, IMF officials called on the next administration to restart the economy quickly, stressing that there was no time for progressive policies.
Argentina last week released its latest October inflation figures, which rose more than 140% a year to a 32-year high.
Milei will take office on December 10.
Related Posts

Argentina's inflation rose over 140% yearly, and Milei received 56% of the votes, indicating a strong mandate for his economic reforms.

Title:

Content: Javier Milei is elected president of Argentina.
Libertarian Javier Milei, who won the presidency of Argentina on Sunday, promised a radical overhaul to address decades of policy mismanagement, but his radical and bold ideas also raised doubts.
According to the official electoral body, after Sunday ’ s runoff, 99% of the votes were counted, and Milei received 56% of the votes, beating the 44% of the votes of Sergio Massa, the current economy minister.
The number of votes he won was unexpected, and Massa conceded the defeat before the results were announced.
Speaking to Argentines on Sunday night, Milei said his victory marked the beginning of "the reconstruction of Argentina."
“Today Argentina ’ s decline is beginning to end, ” he said.
“Today, the pattern of poverty in a country that is everywhere is over, one that benefits only a part of the population, while the majority suffers. ”
In the capital, Buenos Aires, hundreds of Milei ’ s supporters honked their horns, set off fireworks and sang his popular song against the political elite, “Get them all off! ”.
Milei ’ s main campaign promises include abandoning the peso and switching to the dollar and shutting down the central bank, while slashing public spending in an attempt to get the country of 46 million people out of trouble.
However, Milei ’ s shock therapy could also set Argentina on an uncertain path, with some economists warning that dollarizing the $622 billion economy while international reserves run out could plunge the South American country into another round of hyperinflation.
At the same time, IMF officials called on the next administration to restart the economy quickly, stressing that there was no time for progressive policies.
Argentina last week released its latest October inflation figures, which rose more than 140% a year to a 32-year high.
Milei will take office on December 10.
Related Posts

What economic issue did Milei want to address?

The government is considering shielding poor households from high living costs by providing a monthly grant, and has committed to providing support to vulnerable populations.

Title:

Content: Govt wants to shield poor from high living costs, how to fund it is the question - Godongwana

0:00
Subscribers can listen to this article
Finance Minister Enoch Godongwana.
Mlungisi Louw

Finance Minister Enoch Godongwana said there’s a legitimate argument for shielding the poor against the impact of rising living costs, but determining the kind of support that should be provided and how to pay for it remains a work in progress.

"We need to discuss what is the appropriate form of cushioning the vulnerable," the minister said in an interview in Johannesburg on Thursday. "The next set of issues then is how are we going to fund that."

The government began paying low-income households monthly grants of R350 after the onset of the coronavirus pandemic in 2020, and has renewed the temporary stipend three times since then. Last month, it was extended until the end of March 2024. Civil rights groups have been pushing for a permanent income grant, a proposition the National Treasury has resisted so far.

Further support can only be financed with additional taxes or by reprioritising spending, or a combination of both, according to Godongwana. But increasing personal income taxes will exacerbate the problem of rising living costs, raising company levies will result in workers being fired, and value-added tax is a blunt instrument that hurts the poor and rich alike," he said.

We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For 14 free days, you can have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today. Thereafter you will be billed R75 per month. You can cancel anytime and if you cancel within 14 days you won't be billed.
Subscribe to News24
Rand - Dollar
17.47
+1.8%
Rand - Pound
20.34
-0.7%
Rand - Euro
17.71
+0.6%
Rand - Aus dollar
11.41
+0.2%
Rand - Yen
0.12
-0.1%
Gold
1,738.45
+1.8%
Silver
21.66
+2.8%
Palladium
1,906.10
+2.1%
Platinum
1,027.47
+4.0%
Brent Crude
92.65
-2.9%
Top 40
63,938
+1.4%
All Share
70,579
+1.4%
Resource 10
69,250
+1.3%
Industrial 25
82,966
+1.8%
Financial 15
16,049
+1.1%
All JSE data delayed by at least 15 minutes
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders

Milei's administration is focused on avoiding hyperinflation through a hyper-orthodox adjustment, with the effort weighing 60% on politicians and 40% on the private sector.

Title:

Content: MercoPress, en Español

Montevideo, December 16th 2023 - 14:34 UTC

Argentina: Milei says burden on private sector is “transitory”

Saturday, December 16th 2023 - 10:05 UTC
Full article 0 comments

Argentine President Javier Milei Friday released a live broadcast through his Instagram account explaining that “The effort that falls on the private sector is transitory.” The head of state added his administration was “focused on avoiding hyperinflation.”

Milei, an economist by trade, also explained that a “hyper-orthodox adjustment with a sincere exchange market and restructuring of the Central Bank” was being implemented in order to curb the rise in prices through ”a sincere [currency] exchange market and [the]restructuring of the Central Bank (BCRA).“

He added that although the ”effort“ currently weighed ”60% on politicians“ and ”40% on the private sector,“ this situation would be ”transitory“ while pledging that this path would lead to closing ”the gap of the import exchange rate plus the PAIS tax“ and, with this, it will ”lower the country risk.“

Once the economy is rearranged, the government will begin to ”eliminate the things that we libertarian liberals do not like,“ the President went on.

”Never the night could beat the day; let's not curse the darkness. Argentina is starting to wake up and stand up,” he stressed.

The Argentine President will convene next Tuesday with all provincial governors to address the impact of the most recent measures on local economies.

Santiago del Estero declared an economic emergency and San Luis announced a contingency plan whereby public workers are to be paid their wages in installments.

In addition, the agriculturally-rich provinces of Córdoba, Santa Fe, and Entre Ríos have expressed their concerns over the increase in export duties.

The following provinces have already announced spending cuts in line with the national government's announcements: Santiago del Estero, San Luis, Córdoba, Tucumán, Santa Fe, Catamarca, Tierra del Fuego, Chubut, San Juan, Neuquén, Entre Ríos, and Santa Cruz.

Interior Minister Guillermo Francos was reported Friday to be coordinating Tuesday's gathering.

Categories: Economy, Politics, Argentina.
Tags: Javier Milei.

What economic issue did Milei want to address?

The government plans to restructure the currency exchange market and the Central Bank as part of its economic reforms.

Title:

Content: MercoPress, en Español

Montevideo, December 16th 2023 - 14:34 UTC

Argentina: Milei says burden on private sector is “transitory”

Saturday, December 16th 2023 - 10:05 UTC
Full article 0 comments

Argentine President Javier Milei Friday released a live broadcast through his Instagram account explaining that “The effort that falls on the private sector is transitory.” The head of state added his administration was “focused on avoiding hyperinflation.”

Milei, an economist by trade, also explained that a “hyper-orthodox adjustment with a sincere exchange market and restructuring of the Central Bank” was being implemented in order to curb the rise in prices through ”a sincere [currency] exchange market and [the]restructuring of the Central Bank (BCRA).“

He added that although the ”effort“ currently weighed ”60% on politicians“ and ”40% on the private sector,“ this situation would be ”transitory“ while pledging that this path would lead to closing ”the gap of the import exchange rate plus the PAIS tax“ and, with this, it will ”lower the country risk.“

Once the economy is rearranged, the government will begin to ”eliminate the things that we libertarian liberals do not like,“ the President went on.

”Never the night could beat the day; let's not curse the darkness. Argentina is starting to wake up and stand up,” he stressed.

The Argentine President will convene next Tuesday with all provincial governors to address the impact of the most recent measures on local economies.

Santiago del Estero declared an economic emergency and San Luis announced a contingency plan whereby public workers are to be paid their wages in installments.

In addition, the agriculturally-rich provinces of Córdoba, Santa Fe, and Entre Ríos have expressed their concerns over the increase in export duties.

The following provinces have already announced spending cuts in line with the national government's announcements: Santiago del Estero, San Luis, Córdoba, Tucumán, Santa Fe, Catamarca, Tierra del Fuego, Chubut, San Juan, Neuquén, Entre Ríos, and Santa Cruz.

Interior Minister Guillermo Francos was reported Friday to be coordinating Tuesday's gathering.

Categories: Economy, Politics, Argentina.
Tags: Javier Milei.

Javier Milei vows to push for economic reform in Argentina, including slashing state spending and reducing the fiscal deficit.

What issue did Milei want to address without printing money?

Milei's economic reforms face delay due to the fragmented Argentine Congress, which may hinder the implementation of his policies.

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.

For more content including Uni News, Reviews, Entertainment, Lifestyle, Features and so much more, follow us on Twitter and Instagram, and like our Facebook page for more articles and information on how to get involved.

To keep up to date with all the latest Impact News, you can also follow us on the Impact News’  FacebookInstagram and Twitter page.

Categories
International NewsNews

The dollarization policy requires Congress approval and an estimated US $35-50 billion, and may take up to two years to implement.

Title:

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

  • Oops!
    Something went wrong.
    Please try again later.

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.

Milei's government needs US dollars to replace pesos, and the interest rate policy would be controlled by the US Federal Reserve under the dollarization plan.

Argentina's economy would be vulnerable to US dollar shocks, and Milei admitted that his plan could have painful internal adjustments.

Milei's economic reform bill aims to overhaul Argentina's economy, including an austerity drive and spending cuts, and the government expects the bill to be approved in Congress.

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)

Advertisement

The fiscal section was removed from the bill due to opposition, and the government aims for a zero deficit this year.

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)

Advertisement

Milei proposes dollarization as Argentina's sole legal tender, which would replace the peso and potentially stabilize the economy.

What economic issue did Milei want to address?

He advocates for sound money and free markets, and his platform prioritizes private property and individual freedom.

Milei plans to eliminate the central bank and slash public spending significantly, which are key components of his economic reform plan.

Title:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

criticism of government spending
closing the central bank

Inflation stands at 138 percent in September, and Milei needs to address this issue as part of his economic reforms.

Title:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

What economic issue did Milei want to address?

Milei promises to abandon the peso for the dollar and shut down the central bank, which are key steps in his dollarization policy.

Title:

Content: Javier Milei is elected president of Argentina.
Libertarian Javier Milei, who won the presidency of Argentina on Sunday, promised a radical overhaul to address decades of policy mismanagement, but his radical and bold ideas also raised doubts.
According to the official electoral body, after Sunday ’ s runoff, 99% of the votes were counted, and Milei received 56% of the votes, beating the 44% of the votes of Sergio Massa, the current economy minister.
The number of votes he won was unexpected, and Massa conceded the defeat before the results were announced.
Speaking to Argentines on Sunday night, Milei said his victory marked the beginning of "the reconstruction of Argentina."
“Today Argentina ’ s decline is beginning to end, ” he said.
“Today, the pattern of poverty in a country that is everywhere is over, one that benefits only a part of the population, while the majority suffers. ”
In the capital, Buenos Aires, hundreds of Milei ’ s supporters honked their horns, set off fireworks and sang his popular song against the political elite, “Get them all off! ”.
Milei ’ s main campaign promises include abandoning the peso and switching to the dollar and shutting down the central bank, while slashing public spending in an attempt to get the country of 46 million people out of trouble.
However, Milei ’ s shock therapy could also set Argentina on an uncertain path, with some economists warning that dollarizing the $622 billion economy while international reserves run out could plunge the South American country into another round of hyperinflation.
At the same time, IMF officials called on the next administration to restart the economy quickly, stressing that there was no time for progressive policies.
Argentina last week released its latest October inflation figures, which rose more than 140% a year to a 32-year high.
Milei will take office on December 10.
Related Posts

dollarizing the Argentinian currency
closing the central bank

Dollarization may cause hyperinflation, and the IMF calls for a quick economic restart to address Argentina's economic challenges.

Title:

Content: Javier Milei is elected president of Argentina.
Libertarian Javier Milei, who won the presidency of Argentina on Sunday, promised a radical overhaul to address decades of policy mismanagement, but his radical and bold ideas also raised doubts.
According to the official electoral body, after Sunday ’ s runoff, 99% of the votes were counted, and Milei received 56% of the votes, beating the 44% of the votes of Sergio Massa, the current economy minister.
The number of votes he won was unexpected, and Massa conceded the defeat before the results were announced.
Speaking to Argentines on Sunday night, Milei said his victory marked the beginning of "the reconstruction of Argentina."
“Today Argentina ’ s decline is beginning to end, ” he said.
“Today, the pattern of poverty in a country that is everywhere is over, one that benefits only a part of the population, while the majority suffers. ”
In the capital, Buenos Aires, hundreds of Milei ’ s supporters honked their horns, set off fireworks and sang his popular song against the political elite, “Get them all off! ”.
Milei ’ s main campaign promises include abandoning the peso and switching to the dollar and shutting down the central bank, while slashing public spending in an attempt to get the country of 46 million people out of trouble.
However, Milei ’ s shock therapy could also set Argentina on an uncertain path, with some economists warning that dollarizing the $622 billion economy while international reserves run out could plunge the South American country into another round of hyperinflation.
At the same time, IMF officials called on the next administration to restart the economy quickly, stressing that there was no time for progressive policies.
Argentina last week released its latest October inflation figures, which rose more than 140% a year to a 32-year high.
Milei will take office on December 10.
Related Posts

Argentina's inflation rose over 140% yearly, and Milei received 56% of the votes, indicating a strong mandate for his economic reforms.

Title:

Content: Javier Milei is elected president of Argentina.
Libertarian Javier Milei, who won the presidency of Argentina on Sunday, promised a radical overhaul to address decades of policy mismanagement, but his radical and bold ideas also raised doubts.
According to the official electoral body, after Sunday ’ s runoff, 99% of the votes were counted, and Milei received 56% of the votes, beating the 44% of the votes of Sergio Massa, the current economy minister.
The number of votes he won was unexpected, and Massa conceded the defeat before the results were announced.
Speaking to Argentines on Sunday night, Milei said his victory marked the beginning of "the reconstruction of Argentina."
“Today Argentina ’ s decline is beginning to end, ” he said.
“Today, the pattern of poverty in a country that is everywhere is over, one that benefits only a part of the population, while the majority suffers. ”
In the capital, Buenos Aires, hundreds of Milei ’ s supporters honked their horns, set off fireworks and sang his popular song against the political elite, “Get them all off! ”.
Milei ’ s main campaign promises include abandoning the peso and switching to the dollar and shutting down the central bank, while slashing public spending in an attempt to get the country of 46 million people out of trouble.
However, Milei ’ s shock therapy could also set Argentina on an uncertain path, with some economists warning that dollarizing the $622 billion economy while international reserves run out could plunge the South American country into another round of hyperinflation.
At the same time, IMF officials called on the next administration to restart the economy quickly, stressing that there was no time for progressive policies.
Argentina last week released its latest October inflation figures, which rose more than 140% a year to a 32-year high.
Milei will take office on December 10.
Related Posts

What economic issue did Milei want to address?

The government of Argentina, under President Javier Milei, aims to avoid hyperinflation through the implementation of a hyper-orthodox adjustment.

Title:

Content: MercoPress, en Español

Montevideo, December 16th 2023 - 14:34 UTC

Argentina: Milei says burden on private sector is “transitory”

Saturday, December 16th 2023 - 10:05 UTC
Full article 0 comments

Argentine President Javier Milei Friday released a live broadcast through his Instagram account explaining that “The effort that falls on the private sector is transitory.” The head of state added his administration was “focused on avoiding hyperinflation.”

Milei, an economist by trade, also explained that a “hyper-orthodox adjustment with a sincere exchange market and restructuring of the Central Bank” was being implemented in order to curb the rise in prices through ”a sincere [currency] exchange market and [the]restructuring of the Central Bank (BCRA).“

He added that although the ”effort“ currently weighed ”60% on politicians“ and ”40% on the private sector,“ this situation would be ”transitory“ while pledging that this path would lead to closing ”the gap of the import exchange rate plus the PAIS tax“ and, with this, it will ”lower the country risk.“

Once the economy is rearranged, the government will begin to ”eliminate the things that we libertarian liberals do not like,“ the President went on.

”Never the night could beat the day; let's not curse the darkness. Argentina is starting to wake up and stand up,” he stressed.

The Argentine President will convene next Tuesday with all provincial governors to address the impact of the most recent measures on local economies.

Santiago del Estero declared an economic emergency and San Luis announced a contingency plan whereby public workers are to be paid their wages in installments.

In addition, the agriculturally-rich provinces of Córdoba, Santa Fe, and Entre Ríos have expressed their concerns over the increase in export duties.

The following provinces have already announced spending cuts in line with the national government's announcements: Santiago del Estero, San Luis, Córdoba, Tucumán, Santa Fe, Catamarca, Tierra del Fuego, Chubut, San Juan, Neuquén, Entre Ríos, and Santa Cruz.

Interior Minister Guillermo Francos was reported Friday to be coordinating Tuesday's gathering.

Categories: Economy, Politics, Argentina.
Tags: Javier Milei.

What economic issue did Milei want to address?

The Central Bank of Argentina is undergoing restructuring as part of the government's efforts to stabilize the economy.

Title:

Content: MercoPress, en Español

Montevideo, December 16th 2023 - 14:34 UTC

Argentina: Milei says burden on private sector is “transitory”

Saturday, December 16th 2023 - 10:05 UTC
Full article 0 comments

Argentine President Javier Milei Friday released a live broadcast through his Instagram account explaining that “The effort that falls on the private sector is transitory.” The head of state added his administration was “focused on avoiding hyperinflation.”

Milei, an economist by trade, also explained that a “hyper-orthodox adjustment with a sincere exchange market and restructuring of the Central Bank” was being implemented in order to curb the rise in prices through ”a sincere [currency] exchange market and [the]restructuring of the Central Bank (BCRA).“

He added that although the ”effort“ currently weighed ”60% on politicians“ and ”40% on the private sector,“ this situation would be ”transitory“ while pledging that this path would lead to closing ”the gap of the import exchange rate plus the PAIS tax“ and, with this, it will ”lower the country risk.“

Once the economy is rearranged, the government will begin to ”eliminate the things that we libertarian liberals do not like,“ the President went on.

”Never the night could beat the day; let's not curse the darkness. Argentina is starting to wake up and stand up,” he stressed.

The Argentine President will convene next Tuesday with all provincial governors to address the impact of the most recent measures on local economies.

Santiago del Estero declared an economic emergency and San Luis announced a contingency plan whereby public workers are to be paid their wages in installments.

In addition, the agriculturally-rich provinces of Córdoba, Santa Fe, and Entre Ríos have expressed their concerns over the increase in export duties.

The following provinces have already announced spending cuts in line with the national government's announcements: Santiago del Estero, San Luis, Córdoba, Tucumán, Santa Fe, Catamarca, Tierra del Fuego, Chubut, San Juan, Neuquén, Entre Ríos, and Santa Cruz.

Interior Minister Guillermo Francos was reported Friday to be coordinating Tuesday's gathering.

Categories: Economy, Politics, Argentina.
Tags: Javier Milei.

The government is focusing on creating a sincere exchange market, with efforts weighing 60% on politicians and 40% on the private sector.

Title:

Content: MercoPress, en Español

Montevideo, December 16th 2023 - 14:34 UTC

Argentina: Milei says burden on private sector is “transitory”

Saturday, December 16th 2023 - 10:05 UTC
Full article 0 comments

Argentine President Javier Milei Friday released a live broadcast through his Instagram account explaining that “The effort that falls on the private sector is transitory.” The head of state added his administration was “focused on avoiding hyperinflation.”

Milei, an economist by trade, also explained that a “hyper-orthodox adjustment with a sincere exchange market and restructuring of the Central Bank” was being implemented in order to curb the rise in prices through ”a sincere [currency] exchange market and [the]restructuring of the Central Bank (BCRA).“

He added that although the ”effort“ currently weighed ”60% on politicians“ and ”40% on the private sector,“ this situation would be ”transitory“ while pledging that this path would lead to closing ”the gap of the import exchange rate plus the PAIS tax“ and, with this, it will ”lower the country risk.“

Once the economy is rearranged, the government will begin to ”eliminate the things that we libertarian liberals do not like,“ the President went on.

”Never the night could beat the day; let's not curse the darkness. Argentina is starting to wake up and stand up,” he stressed.

The Argentine President will convene next Tuesday with all provincial governors to address the impact of the most recent measures on local economies.

Santiago del Estero declared an economic emergency and San Luis announced a contingency plan whereby public workers are to be paid their wages in installments.

In addition, the agriculturally-rich provinces of Córdoba, Santa Fe, and Entre Ríos have expressed their concerns over the increase in export duties.

The following provinces have already announced spending cuts in line with the national government's announcements: Santiago del Estero, San Luis, Córdoba, Tucumán, Santa Fe, Catamarca, Tierra del Fuego, Chubut, San Juan, Neuquén, Entre Ríos, and Santa Cruz.

Interior Minister Guillermo Francos was reported Friday to be coordinating Tuesday's gathering.

Categories: Economy, Politics, Argentina.
Tags: Javier Milei.

In an effort to address the economic challenges, some provinces in Argentina have announced spending cuts and declared economic emergencies.

Title:

Content: MercoPress, en Español

Montevideo, December 16th 2023 - 14:34 UTC

Argentina: Milei says burden on private sector is “transitory”

Saturday, December 16th 2023 - 10:05 UTC
Full article 0 comments

Argentine President Javier Milei Friday released a live broadcast through his Instagram account explaining that “The effort that falls on the private sector is transitory.” The head of state added his administration was “focused on avoiding hyperinflation.”

Milei, an economist by trade, also explained that a “hyper-orthodox adjustment with a sincere exchange market and restructuring of the Central Bank” was being implemented in order to curb the rise in prices through ”a sincere [currency] exchange market and [the]restructuring of the Central Bank (BCRA).“

He added that although the ”effort“ currently weighed ”60% on politicians“ and ”40% on the private sector,“ this situation would be ”transitory“ while pledging that this path would lead to closing ”the gap of the import exchange rate plus the PAIS tax“ and, with this, it will ”lower the country risk.“

Once the economy is rearranged, the government will begin to ”eliminate the things that we libertarian liberals do not like,“ the President went on.

”Never the night could beat the day; let's not curse the darkness. Argentina is starting to wake up and stand up,” he stressed.

The Argentine President will convene next Tuesday with all provincial governors to address the impact of the most recent measures on local economies.

Santiago del Estero declared an economic emergency and San Luis announced a contingency plan whereby public workers are to be paid their wages in installments.

In addition, the agriculturally-rich provinces of Córdoba, Santa Fe, and Entre Ríos have expressed their concerns over the increase in export duties.

The following provinces have already announced spending cuts in line with the national government's announcements: Santiago del Estero, San Luis, Córdoba, Tucumán, Santa Fe, Catamarca, Tierra del Fuego, Chubut, San Juan, Neuquén, Entre Ríos, and Santa Cruz.

Interior Minister Guillermo Francos was reported Friday to be coordinating Tuesday's gathering.

Categories: Economy, Politics, Argentina.
Tags: Javier Milei.

The government has also increased export duties, which has raised concerns among provinces.

Title:

Content: MercoPress, en Español

Montevideo, December 16th 2023 - 14:34 UTC

Argentina: Milei says burden on private sector is “transitory”

Saturday, December 16th 2023 - 10:05 UTC
Full article 0 comments

Argentine President Javier Milei Friday released a live broadcast through his Instagram account explaining that “The effort that falls on the private sector is transitory.” The head of state added his administration was “focused on avoiding hyperinflation.”

Milei, an economist by trade, also explained that a “hyper-orthodox adjustment with a sincere exchange market and restructuring of the Central Bank” was being implemented in order to curb the rise in prices through ”a sincere [currency] exchange market and [the]restructuring of the Central Bank (BCRA).“

He added that although the ”effort“ currently weighed ”60% on politicians“ and ”40% on the private sector,“ this situation would be ”transitory“ while pledging that this path would lead to closing ”the gap of the import exchange rate plus the PAIS tax“ and, with this, it will ”lower the country risk.“

Once the economy is rearranged, the government will begin to ”eliminate the things that we libertarian liberals do not like,“ the President went on.

”Never the night could beat the day; let's not curse the darkness. Argentina is starting to wake up and stand up,” he stressed.

The Argentine President will convene next Tuesday with all provincial governors to address the impact of the most recent measures on local economies.

Santiago del Estero declared an economic emergency and San Luis announced a contingency plan whereby public workers are to be paid their wages in installments.

In addition, the agriculturally-rich provinces of Córdoba, Santa Fe, and Entre Ríos have expressed their concerns over the increase in export duties.

The following provinces have already announced spending cuts in line with the national government's announcements: Santiago del Estero, San Luis, Córdoba, Tucumán, Santa Fe, Catamarca, Tierra del Fuego, Chubut, San Juan, Neuquén, Entre Ríos, and Santa Cruz.

Interior Minister Guillermo Francos was reported Friday to be coordinating Tuesday's gathering.

Categories: Economy, Politics, Argentina.
Tags: Javier Milei.

To mitigate the effects of the reforms, the government of Ethiopia, in a different context, has promised to subsidize fuel and raise the salaries of civil servants.

Title:

Content:
World

Ethiopia's currency dives by 30% as IMF-backed reforms to stabilize the economy take effect

ADDIS ABABA, Ethiopia — (AP) — Ethiopia's currency lost 30% of its value Tuesday, the day after the central bank began implementing a flexible exchange rate policy backed by the International Monetary Fund as part of new measures to stabilize the eastern African nation's economy.

Mamo Mihretu, governor of the National Bank of Ethiopia, said in a televised address Monday that the reforms “will introduce a competitive, market-based determination of the exchange rate and address a long-standing distortion within the Ethiopian economy.”

Commercial banks can set the price of foreign exchange and non-bank entities are permitted to operate forex bureaux for the first time, a historic change in a country where the government for decades fixed those prices, allowing a black market to flourish.

The International Monetary Fund approved a four-year credit facility worth $3.4 billion to coincide with Ethiopia's reforms. It pledged to disburse $1 billion immediately to address pressing needs, with Managing Director Kristalina Georgieva describing the reforms as a "landmark moment for Ethiopia."

Ethiopia expects a total of around $13.5 billion in new funding, including from the World Bank and currency swap agreements with foreign governments.

Prime Minister Abiy Ahmed said in a statement that the new exchange rate regime is "critical to relieving (forex) shortages, removing constraints to private sector investment and growth, and aligning the prices of imported and exported goods and services with market realities."

The Ethiopian currency, known as the birr, was one of the weakest in the region in recent months. Still, one of the immediate consequences of the exchange rate policy change was a sharp rise in inflation, and some businesspeople in Addis Ababa, the capital, were complaining Tuesday. Following the currency float, the birr depreciated by 30% in the official market against major foreign currencies.

“I wanted to purchase concert speakers last week and I was quoted about 100,000 birr ($1400), and today the same product is being sold 25% more," said Yonas Anberber, a wedding planner.

The government has promised to subsidize fuel and raise the salaries of civil servants to help people adjust to the reforms.

In Merkato, Addis Ababa’s biggest open-air market, many stall owners decided to hoard the bulk of their goods, hoping for price stability in the near future.

"The market for goods and services will react in the coming days, which may significantly have negative repercussions on the cost of living for many households," Abdulemnan M. Hamza, an economic analyst in Addis Ababa, told the AP. "As a result, the urban poor, the lowly paid employees, the pensioners will suffer the most."

Most of Addis Ababa’s real-estate companies, which import many raw materials and make transactions based on an exchange rate fixed by authorities, were among the first to adjust their prices, increasing them by roughly 30%.

Ethiopia has long faced a critical shortage of foreign currency. For over a year, the gap between the official exchange rate and the parallel market rate soared, a disparity the government expects to narrow after the reforms.

“The floating was overdue as the parallel black market had reached its ceiling due to cash shortages in the economy,” said Samson Berhane, an economist based in Addis Ababa. "Local banks have some room to maneuver the rate until it reaches equilibrium, but the disadvantage is that it comes with the risk of inflation that is likely to increase."

Comments on this article

Listen

news

weather

traffic

mobile apps

Everything you love about wdbo.com and more! Tap on any of the buttons below to download our app.

amazon alexa

Enable our Skill today to listen live at home on your Alexa Devices!

The Ethiopian government's reforms aim to introduce a market-based exchange rate determination, which may significantly increase the cost of living for many households.

In Cuba, the government has promised intervention to halt the slide of the peso, which has lost less than 10% of its 2019 purchasing power.

Title:

Content: Cubans await promised government intervention as peso slides further

HAVANA - The Cuban government has promised to take decisive action this month to halt a slide in the peso that has wiped out savings and left Cubans struggling to afford basic goods, but economists Reuters spoke to were skeptical of a quick fix.

The black market peso has slid 20% far this year against the dollar, and has less then 10% of the purchasing power it had in 2019.

Last month, Deputy Economy Minister Mildrey Granadillo de la Torre told a cabinet meeting that measures to tackle the weakening peso were planned for March, including an "adjustment of the exchange rate," according to state media.

Prime Minister Manuel Marrero said in December a major monetary reform would take place this year. Neither official gave further details.

But five Cuban economists Reuters spoke with said that changing course would be difficult.

Cuba has three effective exchange rates. The government has a fixed rate of 24 pesos to the dollar, plus a "discretionary" fixed rate of 120 pesos, used for example for services for tourists and gasoline. And then there is an informal one, which was trading at around 320 pesos to the dollar on Tuesday, according to a tracker provided by independent news outlet El Toque.

Marrero has said taking back control of the monetary system is part of a plan to set the stage for recovery from a crisis that has left gross domestic product 10% below its 2019 level.

The government often lambasts the informal rate as illegal, speculative and part of a U.S. effort to cripple the state-dominated economy.

"This practice that from another country someone using a computer sets the exchange rate must go," Marrero said in December.

But the informal rate is the one that best reflects the true value of the peso, the economists said.

"In reality the informal exchange rate is a reflection of the imbalances in the economy, and it is not the main cause of the problems," former central bank economist Pavel Vidal said in an interview.

He said the peso's plummet this year was on the back of a record fiscal deficit, falling production and the absence of a clear stabilization program and reforms he said were needed.

"The exchange rate will continue to depreciate between 5% and 9% each month," predicted Vidal, who teaches in Colombia and is the most widely read critic of Cuban monetary policy.

For Cubans who have lived through two previous adjustments that did nothing to dampen inflation, demand for dollars is unlikely to decline as imported goods prices rise and people seek to leave the island or a safe haven for their savings.

"I don't have much hope," said Rafael Oliva, a 28-year old who works in the private sector.

"As long as the demand for dollars remains high ... the exchange rate will never go down." REUTERS

Join ST's Telegram channel and get the latest breaking news delivered to you.

The Cuban government has planned measures to tackle the weakening peso, including a major monetary reform.

Title:

Content: Cubans await promised government intervention as peso slides further

HAVANA - The Cuban government has promised to take decisive action this month to halt a slide in the peso that has wiped out savings and left Cubans struggling to afford basic goods, but economists Reuters spoke to were skeptical of a quick fix.

The black market peso has slid 20% far this year against the dollar, and has less then 10% of the purchasing power it had in 2019.

Last month, Deputy Economy Minister Mildrey Granadillo de la Torre told a cabinet meeting that measures to tackle the weakening peso were planned for March, including an "adjustment of the exchange rate," according to state media.

Prime Minister Manuel Marrero said in December a major monetary reform would take place this year. Neither official gave further details.

But five Cuban economists Reuters spoke with said that changing course would be difficult.

Cuba has three effective exchange rates. The government has a fixed rate of 24 pesos to the dollar, plus a "discretionary" fixed rate of 120 pesos, used for example for services for tourists and gasoline. And then there is an informal one, which was trading at around 320 pesos to the dollar on Tuesday, according to a tracker provided by independent news outlet El Toque.

Marrero has said taking back control of the monetary system is part of a plan to set the stage for recovery from a crisis that has left gross domestic product 10% below its 2019 level.

The government often lambasts the informal rate as illegal, speculative and part of a U.S. effort to cripple the state-dominated economy.

"This practice that from another country someone using a computer sets the exchange rate must go," Marrero said in December.

But the informal rate is the one that best reflects the true value of the peso, the economists said.

"In reality the informal exchange rate is a reflection of the imbalances in the economy, and it is not the main cause of the problems," former central bank economist Pavel Vidal said in an interview.

He said the peso's plummet this year was on the back of a record fiscal deficit, falling production and the absence of a clear stabilization program and reforms he said were needed.

"The exchange rate will continue to depreciate between 5% and 9% each month," predicted Vidal, who teaches in Colombia and is the most widely read critic of Cuban monetary policy.

For Cubans who have lived through two previous adjustments that did nothing to dampen inflation, demand for dollars is unlikely to decline as imported goods prices rise and people seek to leave the island or a safe haven for their savings.

"I don't have much hope," said Rafael Oliva, a 28-year old who works in the private sector.

"As long as the demand for dollars remains high ... the exchange rate will never go down." REUTERS

Join ST's Telegram channel and get the latest breaking news delivered to you.

In Zimbabwe, the government will defend the local currency's value and has developed a Transitional Stabilisation Programme to guide reforms.

Title:

Content: Latest News Editor's Choice

News / Local

'No US dollar comeback'

by Staff reporter
4 hrs ago | Views
Government will not re-dollarise the economy because it's not possible to grow it riding on other economies currencies, Finance and Economic Development Minister, Professor Mthuli Ncube said yesterday.

Despite calls by the business community, civil servants, and ordinary citizens to do so, Prof Ncube said Zimbabwe will not adopt the US dollar as the country's sole currency.

He said measures will be put in place to defend the value of the local currency.

This comes amid exchange rate volatility on the parallel market, where rates have doubled the official Reserve Bank of Zimbabwe's (RBZ) auction market exchange rate.

Zimbabwe adopted the greenback in February 2009, which partly led to higher production costs and stiff competition from regional countries whose products were being imported into the country at a lower cost.

Exports were also rendered uncompetitive as they competed with products from countries that manufactured using softer currencies like the South African rand and Botswana's pula.

Addressing youths drawn from tertiary colleges in Gweru during a youth symposium organised by the Zanu-PF Midlands province leadership held at Mkoba Teachers' College in Gweru yesterday, Prof Ncube said Zimbabwe cannot use other people's currency to develop its economy.

"In 2019 we re-introduced the Zimbabwean dollar because you cannot develop the economy without your own currency. It's not possible to develop our economy using other people's currency and therefore we need our own local currency in electronic form which is RTGS and the paper form," he said.

Prof Ncube said focus should be on making sure that the US dollar does not dominate the local economy.

He said the Zimbabwe dollar was doing well to spur local manufacturing industry as evidenced by the fact that 70 percent of products on shelves in shops are local products.

"Manufacturing industry has been doing well under the local currency. So, the local currency is supporting the local industry because now we have 70 percent of all products on shelves in shops being locally made. Local products are filling our shelves. I am not saying they are cheap but they are contributing to import substitution and job creation," he said.

Prof Ncube said when the Zimbabwean dollar was reintroduced people lost savings.

"When we did that, we realised that people lost their savings. Pensioners lost their money and so we made a decision to compensate pensioners.

Two weeks ago, we started the process of paying pensioners US$100 for losses they made in 2019 when we introduced currency reforms back then. We also called on individual depositors to come to claim their money but however they have been slow to show up. So, show up so that we are able to compensate you," he said.

The symposium which ran under the theme, "Impact of Sanctions on the economy" saw Prof Ncube explaining to youths that the economy of the country could have been on a better standing if it wasn't for the illegally imposed sanctions by Britain and her allies.

Prof Ncube said the Second Republic has been putting in place reforms to mitigate against the sanctions which have affected the growth of the country forcing the country to consider dollarisation.

"The Government developed the Transitional Stabilisation Programme (TSP) to guide the reform process during the period 2018 to 2020.

Significant progress was made in the implementation of the TSP across its various pillars. The next steps towards attaining the objectives of Vision 2030 is being guided by the National Development Strategy 1 (NDS 1) as the country marches towards achieving an upper middle-income society by 2030," said Prof Ncube.

He said there are 14 areas being focused on under NDS 1, such as value addition and supporting the digital economy.

"We want to support that digital economy because Covid-19 has taught us to go digital for the growth of the economy. We want to ensure food security and make sure the environment is protected. Health is also critical for the growth of the economy, housing delivery and access to decent accommodation," said Prof Ncube.

In areas such as food security and engagement and re-engagement, he said the Second Republic decided to compensate the white commercial farmers who lost land to the previously marginalised Zimbabwean but only for improvements made on the land.

Prof Ncube encouraged the youths to come up with business ideas and get funding from the Government.

"Government has put in place mechanisms for youth empowerment and it's up to you to approach the Government for funding. We are supporting youths in mining, youths in farming and those with technology ideas can go to any innovation hubs in the State universities to develop them.

If you want to go into farming, youths have 10percent of the land in provinces and they can also consider getting into business partnerships or ventures and take farming as a business. We want you to be part of Vision 2030," he said.

Source - The Chronicle

The government of Zimbabwe has also developed a National Development Strategy 1 to guide the country's reforms and has compensated pensioners for lost savings when the Zimbabwe dollar was reintroduced.

The government of Cuba has increased the minimum wage by 500% to 87 USD and the maximum wage to almost 400 USD as part of its currency reform.

Title:

Content: Anti-inflationary Policies in Cuba and Inequality

“The wild spike in prices led to distortions and dissatisfaction, especially among those who saw their purchasing power drop.”

By Luis Brizuela (IPS)

HAVANA TIMES – The Cuban government has many challenges right now, including the implementation of anti-inflationary policies that will help reduce social inequalities, which have become more visible after economic reforms began in January.

“My husband’s wages and my own are spent almost entirely on food, transport and paying our bills at home. It’s been a while now since we’ve bought clothes, we only think about how we’re going to be able to save up enough to dress and give shoes to our two children, Moraima Valle, a history teacher living in Havana, explained.

Valle stressed to IPS that she earns the equivalent to 170 USD per month at the official exchange rate, but that a pair of shoes costs more than 200 USD, “and we can’t even afford to have a soda out on the street.”

Also living in Havana is pensioner Miguelina Calvo, who worked as a telephone operator, and she told IPS that the 72 USD of her pension vanish into thin air because “prices at the agro-market are through the roof and I need to buy some medicines on the illicit market, as they are almost never available in the drugstore.”

The Reforms Process kicked off on the first day of this year, a comprehensive reforms plan that included eliminating Cuba’s Convertible currency which was in theory the equivalent of the dollar, devaluation of the regular Cuban peso, a spike in wholesale and retail prices, getting rid of a series of subsidies, raising costs of services, as well as an increase in wages and pensions.

Experts recognize that these are important to make state-led companies’ accounts more transparent and to readjust economic variables with international standards, but they also say that they have come almost 10 years after the reforms program was first approved in 2011 to modernize the socialist socio-economic model.

Currency reform was undertaken amidst shortages of food, medicines, and basic essentials because of the COVID-19 pandemic, and the inability of national industries to step up production, as a result of the economic crisis that has existed for three decades.

After a five-year period with low growth rates, this Caribbean Island country lost 13% of its Gross Domestic Product (GDP) ever since the beginning of 2020 and up until September 30th, official statistics reveal.

In the past two years, revenue had dropped by almost 3 billion USD because of the collapse of the main economic leaders, while the priority of health measures to contain the pandemic reduced the sum available for imports, in a country that buys almost 80% of the food it consumes alone.

In addition to all of this, US sanctions increased and the embargo became stricter, which has been hindering financial operations since 1962, and makes it impossible for Cuba to access credit from international financial bodies.

“The wild spike in prices led to distortions and dissatisfaction, especially among those who saw their purchasing power drop. Likewise, it’s also a reason for a lack of motivation at work, as wages are engulfed by prices,” economist Omar Everleny Perez Villanueva explained to IPS.

According to the expert, high inflation “has affected every social group, but especially the most vulnerable such as the elderly, those who receive social security benefits, large families with lots of children or single mothers.”

The numbers speak for themselves

On October 27th and 28th, during the sessions of the National Assembly of People’s Power, the unicameral Cuban Parliament admitted that the rate of inflation continues to increase.

Cubans are experiencing prices that are 7-10 times above official prices, one of the reports presented to the legislative border revealed.

Currency reform increased the minimum wage by 500% to the equivalent of 87 USD, and the maximum to almost 400. In the case of pensions, the lowest stands at 63 USD.

The measure established a fixed official rate of 24 pesos to 1 USD, but on the street, this figure varies between 68 for 1 USD in cash to 78 pesos for a bank deposit for purchases with a debit card in stores with prices in USD, and this money can’t be withdrawn.

Reports handled by Parliament estimate that the deficit in products offered stands at 2.5 billion USD. They claim that it’s a factor that has shot up prices on the illicit market and made the price of the basic basket of goods and services go up, as it now costs double the 60 USD initially planned for monthly expenses.

Furthermore, the reforms process hasn’t stopped the partial dollarization of the economy, after stores opened in 2019 to sell electrical appliances, food and basic essentials, with debit cards priced in USD and linked to accounts in foreign currencies.

Several government officials argue that this controversial mechanism allows the country to collect foreign currency and that some of this money is used to stock up some products at stores where most of the population go, as they only receive their wages and income in Cuban pesos.

Such a segmentation of the economy translates into inequalities in terms of wages and consumption, because “not every family has access, nor can everyone buy the same quantity of products they need,” sociologist Reina Fleitas told IPS.

On the one hand, “you have those who live off their wages, whether they are from the State or not, and on the other, you have people who have access to alternative sources of income via remittances, private businesses or because they form part of the growing illicit market,” Perez Villanueva explained.

Given chronic shortages of some products or the inability to buy in the US dollar stores, analysts highlight that a percentage of the population satisfies their consumer needs on the illicit market, which is partially sustained by the theft of resources from state stores.

In regard to inflation and its effects “we’re aware of the severity”, and the government has made it a top priority to find a solution and to take care of vulnerable people,” stated president Miguel Diaz-Canel at the National Assembly on October 28th.

The Government has slightly lowered some prices such as electricity, which has been the subject of much criticism, while they continue to repeat that they won’t apply “shock therapy” and nobody will be left helpless in a country with universal and free access to education and public health.

Meanwhile, the rations booklet has been kept in effect since 1962, ensuring the 11.2 million inhabitants on the island receive a small monthly ration of rice, sugar, grains, coffee, cooking oil and animal protein, regardless of income, although this doesn’t cover all dietary needs, but it is relief for low-income households and vulnerable groups, at least for part of the month.

Fairer social and economic investment

Analysts highlight the fact that the protests that broke out across the island on July 11th were in keeping with the expensive cost of living and a more severe economic crisis, as well as different internal and external factors.

In the weeks following the protests, the government has given greater priority to social programs such as building and repairing homes, infrastructure projects and specific assistance to people in vulnerable situations. [As well as the arrest of hundreds of people who dared to protest.]

“The Government has shown signs of trying to improve the life of Cuban families, and positive measures such as those that contribute to broadening the range of economic actors and to create new sources of employment, but the positive effects aren’t being seeing in consumption,” Fleitas pointed out.

In her opinion, “fairer social and economic investment is needed in its distribution to keep domestic migration in check” and she reminded us that in Havana, for example, many neighborhoods classified as “vulnerable” are founded by people who come from even more disadvantaged communities, especially in the East.

According to the sociologist, “the same synergy between government and science to fight the pandemic” should be employed with social sciences, as “its results haven’t been given the same importance as other disciplines… and its publications are not only for diagnosing problems, but also to formulate policy proposals.”

Perez Villanueva believes “the regulation of prices needs an injection of imports or sales of national goods.”

In recent months, the government has approved measures to revitalize business activity, and it has authorized the first micro, small or medium-sized enterprises (MIPYMES), in late September, and there are now over 300 signed up.

“However, there continue to be obstacles in the decision-making power of business managers, while MIPYMES need to deal with authorized state bodies to import, or purchase supplies on the illicit market, which affects prices,” the economist summarized.

Read more from Cuba here on Havana Times.

The Cuban government prioritizes finding a solution to inflation and helping vulnerable people, with a rations booklet providing a small monthly ration of essential goods to 11.2 million inhabitants.

Javier Milei, Argentina's new president, has introduced radical economic reforms, including plans to slash state spending and reduce the fiscal deficit, which may have significant implications for the country's relationships with other nations.

What issue did Milei want to address without printing money?

Milei's economic reforms aim to overhaul Argentina's economy, with a focus on austerity measures and spending cuts, which have received support from the International Monetary Fund.

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)

Advertisement

What issue did Milei want to address without printing money?

The reforms may cause economic contraction this year, with the IMF estimating a 2.8% economic contraction in Argentina, and may also impact relationships with other countries.

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)

Advertisement

Milei's government plans to privatize state-owned entities and weaken labor protection, which has sparked nationwide protests and opposition from labor unions.

How will Milei's reforms impact workers?

Who has opposed Milei's proposed layoff order?

The president's economic measures have boosted the market but hurt the poor, with 40% of Argentina's population living in poverty and inflation standing at 211% annually, the highest in 32 years.

As of 2024, what are the statistics regarding poverty?

annual inflation rate of 211% is highest in 32 years

Milei's reforms may affect Argentina's relationships with China and the European Union, particularly given his plans to reduce China's influence in the country and his anti-communist stance.

Title:

Content: Argentina ’ s anti-communist president on stage, China-style financial aid diplomacy fizzled
* Arthur Louis
On November 29, 2023, Argentina ’ s elections revealed a political earthquake, with right-wing liberal economist Javier Milei winning the presidency with more than half the votes.
The newly elected right-wing president, Mirei, could pose a major challenge to China ’ s economic and diplomatic programs.
This article will explore the new leader ’ s words and actions, and the likely impact of this political shift on China.
Argentina ’ s new president, Javier Milei, threatened to freeze relations with China during his election campaign, insisting he would not deal with the Communist Party. (Reuters)
The Right-Wing President ’ s Tough Stand
The new president, Mirei, has shown a strong anti-communist and anti-socialist stance in his campaign, which is far from the ideology of the CCP.
During the campaign, he made clear his support for Ukraine in international affairs and declared that the United States and Israel were Argentina ’ s main partners.
Such a political stance would challenge China ’ s influence in Argentina.
The impact of economic reform on China
Mirei ’ s proposed economic reforms, in particular the abolition of the peso currency in favor of the US dollar, could severely undermine China ’ s economic influence in Argentina.
The RMB 130 billion currency swap agreement between China and Argentina is at risk of failure, which means that China could lose an important economic partner and also trigger foreign exchange losses.
Chinese Aid Diplomacy Failed
The author has three arguments that Chinese-style financial aid diplomacy will be defeated with the election of Mirei:
1.
Political inconsistencies: New President Mirei ’ s clear opposition to communism and socialism puts China ’ s foreign policy in Argentina at significant risk. Differences in political positions will hamper previously close bilateral cooperation.
2 Possible disclosure of corruption: The new government may uncover corrupt practices conspired by old government officials and Chinese officials, which could put the CCP under moral pressure internationally and influence external interactions.
3.
Tear up the BRI: The new government risks tearing up the agreement, further weakening the CCP ’ s geopolitical influence in Argentina.
Conclusion
The election of Argentina ’ s right-wing president poses a serious challenge to China ’ s economic and diplomatic strategy.
Differences in political positions, the impact of economic reform, and the risk of a diplomatic deal all threaten to deprive the CCP of a reliable diplomatic partner in this change.
Chinese-style financial aid diplomacy may face a crushing defeat in Argentina ’ s election, forcing Beijing to reassess its diplomatic strategy in Latin America.
(Chinese researchers)
Free Speech is an electronic forum that provides public dialogue. Whether it is political, economic, social, cultural and other news issues, you are welcome to express your opinions and express your opinions.
Please do not submit more than one manuscript, the length of the text is 700 words, please attach the real name (must be written).
Please note that you have a pen name, occupation, contact number, e-mail account.
This report has the right to accept and delete the right, no remuneration for the draft; the acceptance or non-acceptance will be without notice.
Submission mailbox: LTNTALK @ gmail.com
No need to smoke, no need to grab, now use the APP to watch the news, guarantee the daily winning point I download the APP
I've added friends, thank you.
Welcome to [Free Commentary]
It's a compliment. Good.
It has been praised, thank you.
Related News
Editor 's Choice

What are some of the "liberal democracies" that the Milei administration prioritizes partnerships?

What reason did Milei give about not engaging with China, Cuba, and Venezuela?

Argentina's relationships with other countries in the region, such as Brazil, may also be impacted, although Milei's foreign minister has dismissed the possibility of a rupture with these nations.

The government may face diplomatic challenges due to Milei's reforms, particularly given his plans to eliminate the central bank and replace the local currency with the US dollar.

Title:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

dollarizing the Argentinian currency
closing the central bank

Milei's economic reforms have received support from international free-marketeers, and his government is confident that Congress will approve the reforms.

However, the president faces opposition from lawmakers and street protests, and his coalition lacks a majority in the Senate, which may hinder the passage of his reforms.

Title:

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

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

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

Argentinians see the light

By Ivo Vegter*

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

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

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

Happily, they did see the light.

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

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

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

Radical

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

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

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

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

Mainstream media

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

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

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

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

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

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

Authoritarians

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

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

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

Sour-grape-ish

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

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

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

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

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

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

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

Music to the ears

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

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

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

Pain and gain

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

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

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

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

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

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

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

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

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

Legislative opposition

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

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

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

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

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

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

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

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

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

Wait and see

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

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

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

Read also:

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

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

Visited 57 times, 57 visit(s) today

Who has opposed Milei's proposed layoff order?

The US is Argentina's biggest investor and has significant influence over the International Monetary Fund, which Argentina owes $42 billion, and Milei has sought US support for his economic overhaul.

What are some of the "liberal democracies" that the Milei administration prioritizes partnerships?

Milei's trip to the US is his third in four months as president, and he has met with Elon Musk to discuss economic reforms and investment opportunities in Argentina's vast lithium reserves.

What are some of the "liberal democracies" that the Milei administration prioritizes partnerships?

The US is exploring investment opportunities in Argentine lithium, which could help reduce China's dominance in the battery supply chain.

Milei's government may uncover corrupt practices with Chinese officials, and the new government may tear up the Belt and Road Initiative agreement, which could further strain relationships with China.

Overall, Milei's economic reforms have the potential to significantly impact Argentina's relationships with other countries, particularly in the region, and the government will need to navigate potential diplomatic challenges and opportunities arising from these reforms.

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?

Advertisement

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

Advertisement

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

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?

Advertisement

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

Advertisement

Title:

Content:   1. Skip to content
  2. Skip to main menu
  3. Skip to more DW sites

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.

Title:

Content: Updated 21 mins ago - Economy

Argentine President Milei's plan to remake the economy with a wrecking ball

If your economy is broken, you can try to fix it — or you can essentially just throw it in the trash and try to build something new from scratch.

Why it matters: The latter is, broadly, the plan of anarcho-capitalist Argentine president Javier Milei, while the former is the plan of Zambian president Hakainde Hichilema.

Where it stands: Milei came in like a wrecking ball after he took office in December. He slashed the official value of the currency in half, introduced a "mega-decree" scrapping 366 separate rules, and laid off 5,000 government employees.

  • Alejandro Werner, the former head of the International Monetary Fund's Western Hemisphere department, explains that this course of "shock therapy" carries enormous risks, both to the upside and the downside.
  • The devaluation, at least for the next few months, increases the Argentine inflation rate, which was over 200% in 2023. Milei's budget cuts will also cause a plunge in household income, as well as a deep recession.
  • The economic pain will embolden Milei's opposition — including in the courts, which have already suspended many of his early decrees. A general strike is planned for Wednesday.

What we're watching: Werner is hopeful that Congress will be at least minimally cooperative, that a good agricultural harvest will help replenish foreign reserves, and that inflation will fall to an annualized rate of 50% by the end of the year.

  • Argentina being Argentina, however, Werner notes, it's entirely possible that Milei's opponents in Congress will block most of his policies and devastating hyperinflation will result.

Reality check: Argentina's action stands in stark contrast to the zugzwang in Zambia, which is trying to restructure the old-fashioned way. There, creditors find themselves in a standoff without any obvious resolution — and where even the IMF seems powerless to move things forward.

Between the lines: Milei was quite the toast of the Davos elite this week, notwithstanding the fact that he's on the record calling climate change "a socialist lie."

  • "The Argentine economy is in such bad shape that it has to be shaken up. President Milei and his team are doing exactly that," said IMF chief Kristalina Georgieva in a CNN interview.
  • Milei returned the favor, saying that the CEOs assembled for his speech were "social benefactors" and "heroes."
  • "Let no one tell you that your ambition is immoral," he added.

The bottom line: For the time being, Milei seems to be able to draw on a wellspring of support and goodwill from the international community.

  • The IMF has restarted its program in the country, which means $4.7 billion in international funds have been unlocked and default isn't imminent.
  • All the same, Argentina's bonds are still trading at roughly the same level as those of Spirit Airlines. Some kind of default remains more likely than not — just pitched as part of a bold recovery plan, rather than being draped in anti-creditor rhetoric.
Go deeper

Title:

Content: November 20, 2023

Finally, when the results of Argentina’s presidential election became clear on Monday (November 20, 2023), the result was not at all surprising. However, the margin of victory was definitely there, and it is nothing less than a political earthquake.

Fed up with seemingly perennial economic malaise, lurking annual inflation hovering around 143% and widespread poverty affecting 40% of the population, Argentines turned in large numbers to 53-year-old economist and right-wing outsider Javier Miley.

The man often described by his critics and opponents as “El Loco”, or the mad man, came to power by winning a record 56% of the public run-off vote against Sergio Massa, an outgoing government minister and leftist rival. , with 44. ,

He won 20 of the country’s 23 provinces. Even the country’s capital, Buenos Aires, gave him preference over his rival and in some provinces Milley got as much as 70% of the votes.

His economic policies, many of which may be too strange for some, will undoubtedly be scrutinized ahead of his inauguration on December 10, 2023. But Miley’s core mission of “kicking the Keynesians and collectivists” may be paying off. He.

In addition to pledging to cut bureaucracy (a favorite of his fan base), the president-elect has also promised to “blow up” the central bank to stop it from printing more money, which he says is Argentina’s Increasing uncontrolled inflation. To mark some of the things said on the campaign trail. He also wants to abandon the local currency – the peso – in favor of the US dollar.

Will El Loco compromise Argentina’s energy policy?

Miley has also promised to cut public spending and privatize state-owned companies, which has inevitably increased interest in the energy world. According to the International Energy Agency (IEA), Argentina has the world’s second largest reserves of shale gas and the fourth largest reserves of shale oil worldwide.

In 2022, Argentina produced 706,000 barrels (bpd) of oil and 308 tcf of natural gas in its Vaca Muerta shale formation. The flag bearers of Argentina’s hydrocarbon wealth are the state-owned oil companies YPF and Ensarsa.

More from ForbesHow billions of dollars of investment in AI are fueling innovation in the oil and gas sectorMore from ForbesScaling technology and will is key to ‘fast-tracking’ global energy transition

Miley confirmed his intention to privatize YPF in statements following his election victory. That caused New York-listed shares of YPF (NYSE: YPF) to jump 39% from Friday’s closing price of $10.78 to $15 on Monday (15:00 PM EDT).

However, Miley also told Argentinian broadcasters that before privatizing YPF, his administration would have to “reconstruct” it. The President-elect did not specify how long it would take or what kind of streamlining of operations and processes he had in mind. The market will undoubtedly pounce on them as the details emerge.

It appears that luck is also somewhat on the incoming President’s side. In a desperate attempt to curb crippling energy imports, his predecessor built pipeline infrastructure to monetize Vaca Muerta’s natural gas.

After an economically distressful and nearly 20-year long hiatus, energy exports have finally increased, including to neighboring Chile. In 2022, Argentina had an energy deficit of $5 billion and the current year is probably an exercise in balancing. But government data points to an energy surplus of $4 billion in 2024.

Depending on market direction, windfall profits could ultimately amount to $20 billion by 2030. Many people, perhaps including Miley herself, are hoping that Argentina’s energy exports will also help reduce the country’s overall trade deficit.

And the president-elect, who is proud to declare himself a climate skeptic, has also promised to free Argentina’s energy industry from red tape. This broad omnibus pledge appears to range from closing the country’s Ministry for the Environment and Sustainable Development to encouraging private sector investment in renewables, if there is a buyer.

There are also high hopes that efforts to explore for commercially viable oil and gas in the Falkland Islands – a British overseas territory 300 miles off Argentina’s southern coast, which Buenos Aires claims – could be more favorable and cordial. .

The two countries went to war over the islands in 1982, during the UK premiership of the “Iron Lady” Margaret Thatcher. A British expeditionary force recaptured the islands in June 1982, following a brief occupation by Buenos Aires following the Argentine invasion of the islands in April.

Successive leftist Argentine governments in recent decades have used the controversy for political gain, but Miley caused a political stir earlier this month by describing Thatcher as “one of humanity’s great leaders” in a televised debate. Created a stir.

While Miley, in line with many predecessors, still views Argentina’s sovereignty over the islands as “non-negotiable”, his tone is likely to be more cordial and could promote a gentler level of economic dialogue.

Don’t forget lithium

It is often said in politics that timing is everything and the broader energy complex also seems to be in Miley’s favor. According to the US Geological Survey, Argentina has the world’s second largest lithium reserves, estimated at 20 million tonnes.

Domestic production of the metal, vital to the world’s energy transition, is growing rapidly, and could reach 120,000 tonnes/year in 2024 (from current levels of about 60,000 tonnes/year). Miley’s encouragement of private sector investment could further up the game with about 40 projects under development in three active mines.

The only major detail in the energy policy actions is that Miley spent his entire presidential campaign attacking almost Argentina’s entire political class and politicians, especially those on the left.

But his party has very few seats in Argentina’s Congress. Despite her powerful mandate, Miley will now have to negotiate with the very people she attacked during the campaign to advance her agenda. This will not be easy. Although it is too early to say how this will all play out, there are solid grounds for cautious optimism.

Title:

Content: International
2024-06-13 16: 06: 58
Argentine parliament passes economic reform plan, sparks violence
Share:
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.
By accepting the following privacy policy and disclaimer, you agree to the privacy policy and disclaimer contained in am730.
LEARN MORE
Acceptance

Title:

Content: BETA
This is a BETA experience. You may opt-out by clicking here

More From Forbes

Edit Story

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

Following
Click to save this article.
You'll be asked to sign into your Forbes account.
Got it

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

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

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

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

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

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

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

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

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

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

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

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

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

Follow me on Twitter

Title:

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.’”

Article Topic Follows: News

Jump to comments ↓

Associated Press

BE PART OF THE CONVERSATION

News Channel 3 is committed to providing a forum for civil and constructive conversation.

Please keep your comments respectful and relevant. You can review our Community Guidelines by clicking here

If you would like to share a story idea, please submit it here.

Skip to content

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).

Title:

Content: This website uses relevant technologies to provide a better reading experience, while respecting the privacy of users. Click here to understand the privacy statement of the Central News Agency. When you close this window, you agree to the above regulations.
Your browser does not appear to support Traditional Chinese.
Would you like to go to CNA ’ s English website, “Focus Taiwan ”?
Koko Koko Koko Koko Koko Koko
"日本語版「フィーカス」について" (in Japanese).
Central News First-hand News APP
Download
Argentina ’ s economic reform bill sent back to congressional committee for review
2024 / 2 / 7 16: 13
Please agree to our privacy policy in order to enable news listening.
Please agree to our privacy policy in order to enable news listening.
Argentina ’ s liberal president Javier Milei ’ s party said today that a major economic reform package proposed by Milei would be sent back to a parliamentary committee for review, symbolizing a major setback for the bill.
After the lower house of parliament voted last week to approve the so-called “omnibus ” proposal, many of the bill ’ s provisions were vetoed by lawmakers during an article by article review.
The bill, which has been substantially amended by members of Congress, still includes provisions allowing for the privatization of state entities, changes to hundreds of regulations, and measures to reduce state subsidies.
Mirei won the two-man presidential runoff last November with about 56 percent of the vote, but the party ’ s congressional candidates did poorly in the previous round.
Because of his party ’ s relative weakness in parliament, Mirei has sought the support of lawmakers from the main conservative coalition, Juntos por el Cambio.
Mirei ’ s ruling Libertad Avanza, which has just 38 seats in the 257-seat lower house of parliament, today slammed lawmakers who opposed the bill on social media X, saying they committed treason, but admitted the bill must now be sent back to the committee for review.
Later today, Mr. Miley took to social media to criticize lawmakers who blocked the reform package, calling them part of a political “hereditary bloc ” that has made the country sick.
"We don't want to negotiate a bill with the people who destroy this country," Mirei wrote on social media X during a diplomatic visit to Israel.
Argentina is in dire economic straits with an inflation rate of more than 200%, a situation that Mirei blamed on excessive spending by previous governments, especially those led by the center-left Peronist Party.
Some opposition lawmakers today called for a compromise among his colleagues who supported Mirei.
"We implore the ruling party to show some flexibility," Miguel Pichetto, an opposition lawmaker, said during a session of parliament.
The bill must be passed by the lower house before it can be sent to the Senate for final legislative review, with Mirey holding only seven seats in the 72-seat Senate.
Central News Agency "First-hand News" app
The text, pictures and audio and video of this website shall not be reproduced, broadcast or transmitted or used without authorization.
172.30.142.223

Title:

Content: MercoPress, en Español

Montevideo, December 16th 2023 - 14:34 UTC

Argentina: Milei says burden on private sector is “transitory”

Saturday, December 16th 2023 - 10:05 UTC
Full article 0 comments

Argentine President Javier Milei Friday released a live broadcast through his Instagram account explaining that “The effort that falls on the private sector is transitory.” The head of state added his administration was “focused on avoiding hyperinflation.”

Milei, an economist by trade, also explained that a “hyper-orthodox adjustment with a sincere exchange market and restructuring of the Central Bank” was being implemented in order to curb the rise in prices through ”a sincere [currency] exchange market and [the]restructuring of the Central Bank (BCRA).“

He added that although the ”effort“ currently weighed ”60% on politicians“ and ”40% on the private sector,“ this situation would be ”transitory“ while pledging that this path would lead to closing ”the gap of the import exchange rate plus the PAIS tax“ and, with this, it will ”lower the country risk.“

Once the economy is rearranged, the government will begin to ”eliminate the things that we libertarian liberals do not like,“ the President went on.

”Never the night could beat the day; let's not curse the darkness. Argentina is starting to wake up and stand up,” he stressed.

The Argentine President will convene next Tuesday with all provincial governors to address the impact of the most recent measures on local economies.

Santiago del Estero declared an economic emergency and San Luis announced a contingency plan whereby public workers are to be paid their wages in installments.

In addition, the agriculturally-rich provinces of Córdoba, Santa Fe, and Entre Ríos have expressed their concerns over the increase in export duties.

The following provinces have already announced spending cuts in line with the national government's announcements: Santiago del Estero, San Luis, Córdoba, Tucumán, Santa Fe, Catamarca, Tierra del Fuego, Chubut, San Juan, Neuquén, Entre Ríos, and Santa Cruz.

Interior Minister Guillermo Francos was reported Friday to be coordinating Tuesday's gathering.

Categories: Economy, Politics, Argentina.
Tags: Javier Milei.

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

Title:

Content: BETA
This is a BETA experience. You may opt-out by clicking here

More From Forbes

Edit Story

Will Javier Milei Be Able To Blame Economy Minister ‘Toto’ Caputo Once The Going Gets Tough?

Following
Click to save this article.
You'll be asked to sign into your Forbes account.
Got it

Paradoxically, the word that appears to define Argentina’s (and the world’s) first ultra-libertarian president is pragmatism. Initially seen as a positive characteristic allowing the economist to shake off some of the fringe characters and ideas that made up his La Libertad Avanza coalition, Milei’s pragmatism could also lead to negative outcomes if his plans don’t work out.

The economist-president was smart in creating an electoral alliance with Mauricio Macri and Patricia Bullrich, along with PRO party hardliners, and later moved strategically to show independence from the former president to avoid being portrayed as a puppet, like his predecessor. He gave Bullrich the Security and Defence Ministries, minimizing Vice-President Victoria Villaruel’s power and therefore her dictatorship-denying influence, particularly over the security forces. He also sealed a deal with Luis ‘Toto’ Caputo – a leading economic figure from the Macri’s 2015-2019 administration – behind the ex-president’s back, apparently distancing himself from certain extreme measures proposed during the campaign such as dollarization and torching the Central Bank —where the economy minister’s business partner Santiago Bausili at financial consultancy Anker Latinoamerica has taken the reins.

While Caputo had fallen into disrepute, his recycling by Milei didn’t spook the markets initially, or certain sectors of society and the media that appear to have already aligned themselves with Milei. As the nascent administration begins to put its “chainsaw” austerity plan in motion, society will begin to feel the pain of the extreme measures and its tolerance will be tested, as will Milei’s and his team, at the center of which once again sits ‘Toto’ Caputo.

Toto was the first to face the music and lay out an economic plan for the Milei administration, even before the president who mustered the courage only when he announced the DNU emergency decree that came before the Omnibus law. During the first announcement, Caputo sought to deliver a didactic message that made clear the weight of the situation left behind by the Fernández-Fernández administration (“la herencia”). He looked uncomfortable, just as he did during his previous public service posts where he avoided the media and is said to have left the government suffering from panic attacks. His decision to take the “electric chair” ministry remains bewildering. The minister announced a series of measures aimed at achieving a fiscal surplus in their first year in office including aggressive budget cuts and tax hikes.

Caputo’s announcement represented the first time that Milei’s plans were laid out in any sort of detail beyond a declaration of intentions. While in line with the campaign promise of reducing the state’s obligations by more than five percent, the severity of the devaluation of the official peso-dollar exchange rate (120 percent taking it to 800 pesos) and the rest of the measures has set off alarms. Most prices have risen aggressively over the last several weeks, particularly gasoline and food, indicating inflation will spike and could persist. The December reading already hit 25.5 percent, and many expect similar numbers for January. At the same time, it is becoming apparent that forcing the “caste” to absorb the totality of the austerity plan is logically contradictory, as it inevitably affects the everyday citizen which is evident in subsidy reductions and cuts in social spending. Milei had promised he’d rather amputate his arm than raise taxes, but he’s raised export duties and the PAIS tax which pushes the value of the dollar even higher for certain transactions.

The ‘caputazo’ (as the plan is being jokingly called) replaced pure austerity with a mix of higher taxes together with spending cuts and the “dilution” of part of the deficit through high inflation. The next few months will see runaway inflation run even farther away and put intense pressure on the population, as wages and salaries fall even farther behind. Milei had warned that we would have to suffer on our way to libertarian utopia. Leftist social movements and unions have already begun to mobilize against the government, including a general strike at the hands of the General Confederation of Labor. Given Bullrich's hardline predisposition, these were peaceful marches. Will they remain so in a few months if the middle class joins in, desperate to make ends meet?

Once again, the question of Milei’s pragmatism will be front and center. Assuming the impact of his economic plan is as painful as it seems, the level of social conflict will likely rise dramatically. At the same time, he needs to continue to negotiate legislative support for his ambitious reform package, which initially seems to rest on the possibility of an “anti-Peronist” front as seen in the Senate first and at the commission level in the Chamber of Deputies later. How much will society accept that it voted Milei for an orthodox austerity plan that directly hits its purchasing-power? Will the charismatic libertarian be able to retain public support, or convince his voters that excruciating pain is a necessary condition for economic redemption? How long will Caputo resist this time? And if the plan doesn’t work, how much of the blame will Milei be able to pin on the financial trader?

At this point, we have many more questions than answers.

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

Follow me on Twitter

Title:

Content: November 25, 2023

Following Sunday’s election results, Javier Meili is set to become Argentina’s president on December 10. Among other things, President-elect Miley has vowed to replace the peso with the US dollar, a policy known as dollarization. Some critics have argued that dollarization would deplete the Argentine central bank’s US dollar reserves, making dollarization excessively costly and ultimately resulting in hyperinflation. However, in leveling this criticism, they misinterpret Argentina’s current economic situation and fail to consider real-world cases of dollarization during an inflationary crisis.

The risk of hyperinflation in Argentina is not due to Javier Miley’s advocacy of dollarization. Instead, it is the result of years of bad monetary policies. Inflation has been rising steadily since 2007, long before Miley proposed dollarization (and almost anyone in Argentina even thought about the possibility of dollarization).

Some experts argue that, by international standards, Argentina is already experiencing hyperinflation. According to Philip Kagan’s seminal 1956 study, most economists define hyperinflation as an inflation rate greater than 50 percent monthly. To put this in perspective, the average annual inflation rate in Europe between 1950 and 1955 was 5.1 percent. In Kagan’s words, a hyperinflation country experienced monthly price increases that were ten times greater than the price increases experienced by a typical European country in a normal year.

The monetary policy landscape is very different today than in the years immediately preceding Kagan’s study. Over the five-year period ending January 2020, just before the pandemic, the EU’s average annual inflation rate was just 0.98 percent. Using Kagan’s ratio, this would mean that a country experiencing at least 9.8 percent inflation per month has hyperinflation. Argentina saw monthly inflation rates of 12.7 percent and 8.3 percent in September and October, respectively. Therefore, adjusting Cagan’s hyperinflation threshold to reflect general improvements in monetary policy elsewhere would reveal that Argentina is already experiencing hyperinflation. While there is certainly potential for further decline, critics of dollarization need to acknowledge just how serious Argentina’s inflation is in the context of the modern global economy.

International experiences show that dollarization and hyperinflation are interconnected issues, but this is not the case according to critics of dollarization. For example, Ecuador adopted dollarization in January 2000 to prevent hyperinflation. Ecuador’s dollarization proved effective. Dollarization immediately brought Ecuador’s inflation rate into alignment with that of the US and then kept it stable over the next decade, despite economic challenges and two sovereign debt defaults. Another compelling example is Zimbabwe, which adopted dollarization in January 2009 to combat hyperinflation. The result was also successful, with inflation reaching US levels by January 2010. As these cases show, dollarization may be a solution to hyperinflation. Argentina could also either resort to dollarization to prevent hyperinflation, or avoid it if inflation gets out of control.

The risk of hyperinflation in Argentina stems not from an intention to create a dollar but from a central bank that appears unable or unwilling to exercise restraint. Argentina’s historical record shows that central bank independence is absent and not easily secured. For better or worse, dollarization offers the safest path to avoid monetary collapse. This provides Argentina with an opportunity to implement much-needed reforms and move forward on a sustainable development path. Dollarization may make things worse before they get better. But to argue that monetary reform that is supposed to tame inflation will lead to hyperinflation is a distorted view of Argentina’s economic reality.

nicholas kachanowski

Dr. Kachanowski is Associate Professor of Economics and El Paso Woody L. Hunt is the director of the Center for Free Enterprise at the University of Texas in the College of Business. He is also a Fellow of the UCEMA Friedman-Hayek Center for the Study of a Free Society. He served as President of the Association of Private Enterprise Education (APEE, 2021-2022) and on the Board of Directors of the Mont Pelerin Society (MPS, 2018-2022).

He received his Licentiate in Economics from the Pontificia Universidad Católica Argentina, his M.A. in Economics and Political Science from the Escuela Superior de Economía y Administración de Empresas (ESADE), and his Ph.D. M.A. in Economics from Suffolk University, Boston

Dr. Kachanowski is the author of Reflexions sobre la economia argentina (Instituto Acton Argentina, 2017), Monetary balance and nominal income targeting (Routledge, 2019), and co-author Austrian Capital Theory: A Modern Survey of Essentials (Cambridge University Press, 2019), Capital and Finance: Theory and History (Routledge, 2020), and Dollarization: Una Solution for Argentina (Editorial Claridad, 2022).

Dr. Kachanowski’s research has been published in outlets such as Journal of Economic Behavior and Organization, public choice, Journal of Institutional Economics, Quarterly Review of Economics and FinanceAnd Journal of the History of Economic Thought among other outlets.

Get notified of new articles from Nicholas Kachanowski and AIER.

Source: www.aier.org

Title:

Content: Archive | Countries | Persons | Catalog | News | Discussions | Jokes | Contacts | PDA
| Central Asia | Afghanistan | Kazakhstan | Kyrgyzstan | Tajikistan | Turkmenistan | Uzbekistan |
News & Events
|
Monday, 04.09.2023
19: 06 Putin refused Erdogan to resume the “grain deal ”.
Sort of like...
18: 17 Rishi Sunak can not stop the fall of Tory popularity, - Dim.Moiseev
18: 14 Fourth school director detained in Bishkek for illegal fees
17: 54 Washington Post: Why Burn the Quran?
All idiocy can make sense...
17: 52 Putin will continue hookah diplomacy with Erdogan, - Jenk Bashlamysh
China urged the world to unite, not conflict - Wang Yi
15: 36 There is a risk that Argentina will not become a member of the BRICS
15: 33 Druze in southern Syria began to build their mini-state
15: 32 Foreign exchange revenue from the sale of Russian oil and gas remains abroad
14: 51 Putin again talks with Erdogan: who is he?
The head of the newly created Ministry of Water Resources of Kazakhstan became the former cloud Nurzhan Nurzhigitov
09: 45 Timur Sulymenov - new head of KazNational Bank
09: 35 India threatens Russia with reduction of oil purchases for two reasons...
09: 26 Aidarbek Saparov headed by the Ministry of Agriculture of Kazakhstan
08: 57 US Targets Central Asia: Why Release Fukuyama? - V.Prokhvatilov
08: 48 New Minister of Defense of Ukraine becomes "good friend" Abramovich - Crimean Tatar Umerov
Turkish businessman Halit Arabaji, who supplied Kiev with body armor, found dead
Less $481 billion: China is rapidly getting rid of US government debt bonds
00: 39 How they conquered the highest point of the USSR - Stalin Peak (history)
00: 37 NATO has two years left to live - The Atlantic
00: 36 New appointments in the Administration of the President of Kazakhstan: the preponderance of signage departments
00: 35 The last stronghold of Macron ’ s influence in Africa has fallen.
France is no longer needed here - Francois Baird
Newsweek: The Earth has become too crowded - the United States is preparing to fight in space
00: 29 War of attrition.
The United States analyzes the current results of the conflict in Ukraine
00: 26 Eschatology of the multipolar world, - A.Dugin
00: 21 China could not allow the "curse of Chubais"
00: 16 Geopolitics of underwater communications, - Leonid Savin
00: 06 Gastarbeit-business is ready to come out of the shadows, - Ekaterina Trifonova
Sunday, 03.09.2023
22: 10 Shavkat Mirziyoyev visits the mausoleum of Islam Karimov
21: 37 In the Swedish Malmö again publicly burned the Koran in the city square
20: 01 Work at Kazakhstanskaya mine on coal mining and mine excavation stopped for an indefinite time
Today, for the first time, Russia officially celebrates Victory Day over Japan
12: 38 How Igor Kolomoisky was detained.
Video
11: 50 Die Welt: China strictly forbids NATO to expand in Asia according to the “Ukrainian ” model
11: 46 Chen Feng: Go all-in or retreat?
Both options threaten Zelensky with disaster
11: 43 The conditions of life in Ukraine resemble slavery.
The triumph of Western "democracy" in the 21st century - Al Mayadeen
11: 42 The fate of PMC "Wagner": a series of uncomfortable questions about the staged death of Prigozhin and the facts
11: 38 Media unleashed an open information war against the new Kyrvlasti, - K.Kozhoev
11: 37 The President of Kazakhstan instructed to increase the minimum wage from January 2024
11: 35 Ukraine is fueling a fire in the global oil market
08: 37 Last soldier of legendary Panfilov division dies in Almaty
07: 42 Abdukodir Rustam, editor of the book of the arrested "enemy of the people" Kholikzod, detained in Dushanbe
07: 16 UK authorities have disclosed data on real estate Nazarbayevs in London worth more than $50 million
03: 13 Time to collect yuan: trading volume of Chinese currency increased by 6.5 times
02: 27 Without Russian gas - nowhere.
Why EU countries, despite sanctions, increased LNG purchases from Russia - A. Sokolov
00: 25 Hungarian "Rhapsody" Orban.
Budapest can start the process of leaving the European Union? - Valery Panov
00: 18 Conflict in Gagauzia: will Chisinau be able to liquidate national autonomy? - Alexander Korinenko
The trap of Vladimir Putin and Xi Jinping is waiting for “Western partners ”
The Western media began to talk about the end of the “Chinese miracle ” – so the hegemony of the United States is over?
00: 09 Problems of the recovery growth of the PRC economy are exaggerated, - V. Pirozhenko
00: 01 Famous kyr-politician Madumarov closed in jail
Archive
© CentrAsiaTop
CenterAsia |
There is a risk that Argentina will not become a member of the BRICS
15: 36 04.09.2023
VALENTIN KATASONOV
The likely future president is set to change the current vector of foreign policy of the Latin American country
The next BRICS summit has ended in South Africa.
The main decision of the summit is the admission of new members.
On August 24, South African President Cyril Ramaphosa announced that from January 1, 2024, Saudi Arabia, the United Arab Emirates, Iran, Ethiopia, Egypt and Argentina should become full members of the BRICS.
But for Argentina, it was immediately doubtful that she would take advantage of the invitation.
The application to join the organization was submitted by the current government and President of Argentina Alberto Fernandez.
But just a week or so before the BRICS summit, Argentina held a primaries, a preliminary round of presidential elections.
And according to the results of the primaries, it became clear that a radical “change of the guard ” could occur in the country.
The best chance of becoming the next president of the country was demonstrated by Javier Miley, representing the movement under the beautiful name "Forward to Freedom".
Miley received 30.04% of the vote.
The government alliance "Union for the Homeland", which is nominated by the Minister of Economy, Agriculture and Industrial Development Sergio Massa, was supported by 27.27% of voters.
The Alliance "Together for Change", which nominated two candidates for the primaries, received a total of 28.27% of the vote.
Bullrich will represent him in the election.
Mileus, in his ideological position, is a “libertarian, ” that is, he adheres to views close to anarchism.
He seeks for the sake of "freedom" to rid a person of an excess of state guardianship and supervision.
He chose the United States as the “standard of freedom. ”
Javier Miley in the presidential race is actively supported by former security Minister Patricia Bullrich, who has a good chance to take third place in the election.
And then give their votes to Miley, having received from him at least the post of vice president.
Elections are due to take place on October 22.
According to the regulations, there are two rounds.
But if a convincing victory is recorded in the first round (at least 45% of the votes), then a second round will not be required.
Miley ’ s supporters are confident that their protege will be announced as president in the first round.
For the authorities, the first place of Javier Miley was a complete surprise.
Almost no one knew about Miley for another six months.
This new politician very successfully used all the problems that have accumulated in the country to date.
Miley blamed them on the incapacity of the ruling party, President Alberto Fernandez and Vice President Cristina Kirchner.
He promises to put the latter on trial for corruption as soon as she is deprived of her official immunity.
As for socio-economic problems, these are mass poverty (40 percent of the country ’ s population is classified as poor), galloping inflation (this year it reaches 115%), growing public debt and the threat of a new default, high unemployment, etc.
Miley is determined to change the current vector of Argentina ’ s foreign policy.
He has already said loudly that he does not need BRICS.
There is no need not only for membership in the organization, but also for further deepening of trade and economic relations with the BRICS countries.
The bloc currently accounts for 30% of Argentina ’ s exports.
Today, for 8-10 provinces of Argentina, the main direction of supply is China, a lot of agricultural products go to India.
Brazil is the traditional main trading partner of Argentina.
Javier Miley is not going to get closer to either Beijing or Moscow.
He accused Russia and China of creating “problems for all free countries. ”
In addition, he promised to deal with “refugees ” from Russia.
These are those who left our country after February 24, 2022, as well as after the September mobilization of last year, and, taking advantage of the visa-free regime, settled in Argentina.
There are about 35,000 such people today.
Here Patricia Bullrich fully supports Miley.
"We must ensure the safety of Argentines from external influence.
And the representatives of those countries that threaten the United States, threaten Argentina, ” she said.
And with whom does this candidate for president of Argentina intend to approach?
with the United States and Israel.
Miley, in particular, said: "Stop flirting with those who create chaos and instability in the world.
“The freest country in the world is the United States, and we will work closely with them on all key international issues. ”
Also in an interview with El Pais, he said: “My natural allies are the United States and Israel.
I do not want to deal with the communists of Cuba, China and North Korea.
What does that mean?
Trade with whomever you want, but I will not strengthen relations with them. "
And what is Javier Miley going to do inside the country?
What any libertarian would do in his place.
The politician said that “the state should not interfere in the life of citizens – freedom should be complete and unconditional. ”
Accordingly, he proposes to sharply reduce budget expenditures, conduct almost 100 percent privatization of state-owned enterprises, reduce the state apparatus and liquidate a number of ministries (primarily the Ministry of Labor and the Ministry of Education), abolish the severance payments to employees upon dismissal, etc.
And also to introduce the free sale of weapons.
As the politician noted, “we should have everything as in the United States, then there will be order and corruption will disappear. ”
But Javier Miley is not an ordinary libertarian.
He promised the Argentines something that other libertarians would never have thought of.
For example, to legalize the free trade in children and human organs.
“Who are you to determine what a person does with his life? ” the politician answers the question, whether such trade is permissible.
Unorthodox ideas Javier Miley also expresses about the problems of financial, currency and monetary credit.
He proposed, first, to liquidate the Central Bank of Argentina.
Second, cancel the Argentine peso and define the US dollar as the national currency.
In Argentina, Miley famously said, “Central banks fall into four categories: bad, like the Fed; very bad, like in Latin America; terribly bad; and the Central Bank of Argentina. ”
As Javier Miley said, the latter "has no reason to exist."
In an interview with El Pais, the politician explained his position on the Central Bank: “Argentina became the richest country in the world when it did not have a Central Bank.
From 1880 to 1935, average inflation was 0.9% per year.
In 1935, the Central Bank was created as a way to deceive people and benefit those close to power: inflation then jumped to an average of 6% per year.
And the abandonment of the peso in favor of the US dollar will deprive the ruling class of Argentina of the opportunity to print money: "You take away the printing machine from politicians...
This is what will end inflation.
Because inflation is everywhere and always a monetary phenomenon generated by an excess of money.
However, in addition to the dollar as the official currency, the country will allow the free use of private cryptocurrencies, primarily bitcoin.
Miley believes that bitcoin is a reaction to central bank scammers.
True, if all the world ’ s central banks, according to Miley, are crooks, why does he agree to deal with the dollar, which, following the logic of politics, is also created by a fraudulent structure called the “US Federal Reserve ”?
Miley cites as examples worthy of imitation countries such as Ecuador, El Salvador and Panama, where there are no national currencies, and the dollar, in his opinion, provides these countries with financial stability.
However, if you look at these countries, the situation there is not very different from the situation in Argentina.
When asked about the problems that Ecuador faces today, the politician replied that the reason for this is the populist policy of former President Rafael Correa.
The Argentine politician calls not all countries and jurisdictions that do not have national currencies, but the US dollar instead.
To the list should be added Puerto Rico, the American Virgin Islands, the Northern Mariana Islands, Guam, American Samoa, Micronesia, American Samoa, Zimbabwe East Timor and something else by little.
Of all the countries that have adopted the US dollar, the largest in terms of population are Ecuador (18 million people) and Zimbabwe (16 million people).
More than 46 million people live in Argentina.
In terms of economic development (GDP), it is the third country in Latin America after Brazil and Mexico.
Of course, the transition of Argentina to the US dollar would be a real sensation, not only for Latin America, but for the whole world.
Especially considering that the prospects for the US dollar are not so rosy.
And yet Miley is a supporter of the US dollar: “What does it matter to us that dollars are printed in the US?
The main thing is that we will no longer wake up and see what the peso to the dollar exchange rate was yesterday and what it will be tomorrow.
The US dollar will bring financial order to our country.
And by doing so, we will end the games of socialism and the groveling before the trade unions. "
This is the logic of the contender for the presidency of Argentina.
In order to achieve financial stability in the country, to end the games of socialism and stop squabbling in front of the trade unions, Javier Miley is ready to sacrifice such a "trifle" as the national sovereignty of Argentina.
P.S. In social networks, there is a discussion of the question: what guided the participants of the summit in South Africa, when they made the decision to accept Argentina as a member of the BRICS?
The results of the primaries were already known to them.
One version is that in a similar way, the summit participants tried to provide indirect support to the government alliance “Union for the sake of the Motherland ” in the October elections.
After all, the alliance is unequivocally in favor of Argentina ’ s membership in the BRICS.
It is also important that, according to opinion polls, the majority of Argentine citizens also support the idea of   the country's membership in the BRICS.
Source - Strategic Culture Foundation
Permanent address of the article - https: / / centrasia.org / newsA.php? st = 1693830960
News of Kazakhstan
- Working schedule of the head of state
- Address of the Head of State Kassym-Jomart Tokayev to the people of Kazakhstan
- Decree of the President of the Republic of Kazakhstan dated September 1, 2023 No. 318
- Personnel reshuffles
- Maulen Ashimbayev: "The Senate is ready for legislative support of the reforms proposed in the Address"
- The President's Message
- The first plenary session of the new session was held in the Mazhilis
- "The Government has set ambitious but achievable goals"
Inflation in the Republic of Kazakhstan
- Children at the UMC Maternity and Childhood Center were congratulated on the Knowledge Day
Go to the version with frames
© CentrAsiaTop

Title:

Content: Overview:

Argentina's latest presidential election offers plenty of sensational fodder for the presses. But there's a deeper issue here, a politics of desperation, that we would do well to watch as it rises in the world.

Reading Time: 6 minutes

On November 19, Argentina elected Javier Milei as its next president, to take office this December. His politics have been compared to those of Donald Trump (in his showmanship) and Jair Bolsonaro (in his rightwing extremism and denialism), but his ideas go further than both. Milei calls himself an anarcho-capitalist (a form of libertarian), whose stated aims are “blowing up” the central bank, changing the Argentinian peso for the dollar, permitting the private sale of human organs, and closing ministries for education, health, women, and culture while slashing welfare payments.

Milei has also been called a “minarchist” for his minimal-government belief that the state’s only purpose is to protect citizens’ rights to free action. To this end, proposed bans on abortion and loosened gun laws run in lockstep with his acceptance of trans identities and desire to legalize more drugs. He denies the scale of Argentina’s brutal history of state terror in 1976 to 1983, and when he first rose in the polls, there was a panicked rush among citizens to change their pesos for dollars, fearing economic disaster.

So why did he win?

And not just by a hair, but with 56% of the vote against his runoff opponent, Sergei Massa?

The historical underpinnings run deep, but human behavior in response to the current economic moment is also not complex. Urban poverty hit 40.1% in 2023, as inflation reached 50.7% earlier this year. When the official exchange rate was devalued by 22% the day after the primaries (in which Milei’s popularity caused panic), it caused a 12.4% inflation spike. This is in an enconomy where some 48.1% are informally or self-employed, and thus without salaried protections against the greatest financial hits.

An outsider expecting rational economic actors might assume that if Milei’s presence in the polls only destabilized an already precarious situation, surely humans would avoid voting for him again. But the logic of longstanding financial stress runs deeper than traditional economic configurations of the “rational actor”: when there is no confidence in existing state structures, perhaps it is best to pull off the bandaid quickly. The immediate pain will be hard, but maybe, just maybe, the destruction of the old order will bring about something new.

This is the politics of desperation and disillusionment.

The world would do well to pay attention to its rise.

Argentinian histories of low confidence in the state

There’s a famous, apocryphal, and above all cruel expression in economics: “There have only been four types of economies in the world: advanced, developing, Japan, and Argentina.” The point driven at here is that Japan seemed to rise from the ashes, with everything working against it, after World War II and even now with an aging workforce. Meanwhile Argentina, a country with a natural bounty, seemed to destroy confidence in itself at every turn.

This is a cruel expression for a few reasons: one being that Argentina is not alone even in South America, as a country with great internal resources that has struggled to turn its holdings into wealth for its citizens. Another reason is the why. While Japan recovered from WWII by growing a commercial empire through top-down industrial relationships with surrounding countries, Argentina under labor-nationalist Juan Domingo Perón had the audacity in the 1950s to try to nationalize its British-owned railways. This choice met with swift reprisal from Western powers, thereafter unwilling to invest. Before World War II, Argentina had relied heavily on military rule. After inflation spiked and labor strikes surged as global investors pulled out, it was back to decades of fraught authoritarianism.

One of the worst coups started with a 600 percent inflation surge in 1976. That seven-year period yielded up to 30,000 disappeared human beings during the state’s “Dirty War” against leftists, and ended only after the military attempted to take the Falkland Islands from the British. This failure would yield the modern democratic state, but with a low opinion of both the military and the bureaucracy. In 1989, ahead of a massive inflation crisis of up to 4,900 percent, only 30,000 out of 30 million citizens were paying income taxes.

Now, inflation can address domestic debt, but Argentina’s massive fiscal deficit was informed centrally by external debt, in dollars to the rest of the world. During the banking crisis of 1990, banks forced client deposits into bonds under the BONEX Plan, essentially taking citizens’ savings from them with a promise that their investment in the future of the country would pay off. Citizens were not happy about this, of course.

The government then introduced the Convertibility Plan in 1991, which tried to peg the Argentinian peso to the US dollar at a 1:1 rate. This process involved Argentina embracing US neoliberal state policies: relaxing labor protections, massively privatizing industries, and otherwise bringing the world back into Argentinian markets. Did the plan reduce inflation? Yes. It also raised unemployment, reduced wages, and stratified class outcomes. And it led to more austerity measures over time, because the government’s debt kept rising, forcing more of the annual budget into “debt servicing” to other countries.

Being open to world markets also meant being more vulnerable to their downturns, such as a major wobble in 2001, which sparked labor collapse and food riots in Argentina despite its local wealth of grain and beef. The peso was unpegged in 2002, after the government had restricted bank withdrawals to keep citizens from “financial flight” into other currencies and markets. Once the peso was floating freely, though, people panicked anyway. After years of seeing the dollar as the more valuable and stable currency, they rushed to exchange their holdings (which were now all in pesos) back into US dollars by other means. That rush caused another inflationary spike.

Argentina underwent two major debt restructuring deals in that decade, but they just created more problems. A deal in 2001 allowed Argentina to pay interest only to those who had opted in to the restructuring plan, and the exclusion of “holdouts” was reasserted after 2010, when the debt plan was agreed upon by 93% of bondholders. The remaining 7% weren’t having this, though: a few hedge fund creditors sued the Argentinian government for breach of a principle of equal treatment for bondholders, pari passu. The South District Court of New York agreed with them, and even though Argentina tried to continue paying its “holdin” creditors, as per the debt restructuring plan, those payments were not permitted until Argentina paid the holdouts, too, in compliance with the court’s rulings.

Argentina was forced into a massive default in 2014. And again in 2020. And this year, analysts believe it’s on track for another soon.

Why? Because Argentina’s banking system isn’t an independent force. It is yoked to a highly litigious set of international players, and vulnerable to every global market crash as well.

Seen this way, why wouldn’t the average Argentinian want to bring it down?

Dollarization and other flawed promises

The complex problem for Argentinians voting out of desperation is twofold:

For one, as much as they might associate the days of the dollar with a period of relative stability, it was never a simple matter of pegging one currency to another. The arrangement expressly came with Argentina’s willingness to embrace neoliberal policies that yielded stark divides in civilian life and other market outcomes. For Milei to “dollarize” the country now would require a similar willingness to play ball with international institutions and their policy demands. The moment the peso is eliminated, by being exchanged in its entirety for dollars, Argentina cedes a great deal of financial policy to external players.

And yet, that is precisely the issue currently plaguing Argentina’s banks.

But also, not just Argentina, despite the glibness of the apocryphal economics saying.

The problems of our global financial system are serious enough that they will require a much more holistic reckoning with the consequences of fifty years of neoliberal policy. In July, a UN joint commission released “Soaring Debt Threatens Global Prosperity”, a report that highlights the staggering rates of debt servicing endured by 40% of the developing world. If these debts were simply between states, that would be one matter, more easily resolved; but the hyper-privatized yet undertaxed nature of our global economy has the vast majority of these countries forced into austerity measures to pay off complex debts to groups like the hedge fund creditors who pushed Argentina into default in 2014.

In other words, this will keep happening until we develop policies that can offset the private-investment predation currently facing many countries in precarity.

The second problem is one that Colombia also experienced this past year, when many on both the left (with excitement) and the right (with trepidation) expected the first leftist president to bring about dramatic reforms: Milei is just one person in his government. Just as Gustavo Petro found himself embroiled in parliamentary quarrels between competing groups, so too does Milei’s victory not come with the resounding legislative presence needed to steamroll all his grand plans into operation. He, too, is going to have to negotiate.

In practice, this means that Argentinians currently thrilled by the possibility of change are again going to meet with disillusionment. Either Milei will pull off his dollarization, and they will learn that this move makes the country no less vulnerable to global shocks and creditors, or he won’t, and amid his interim achievement of “easier” goals (e.g., the demolition of whole ministries), Argentinians will experience socioeconomic shocks that again bring them to the streets in protest… or else to live, having nowhere else to go.

GLOBAL HUMANIST SHOPTALK M L Clark is a Canadian writer by birth, now based in Medellín, Colombia, who publishes speculative fiction and humanist essays with a focus on imagining a more just world.

Title:

Content: Argentina ’ s ‘ Bitcoin maniac ’ elected president threatens to shut down central bank and dollarize
Author: Zhang Yuejing
Published: Updated:
The result of the election in Argentina was announced, and Javier Milei, a representative of the far-right Liberal Progressive Party (LA), an economist and known as “Trump Argentina, ” was elected president.
He has criticized the central bank as a “scam, ” vowing to shut it down, and he sees Bitcoin as the key to reviving the economy.
Forbes magazine reported on the 20th that Millet won the election with 55% of the vote, reflecting a major political shift in Argentina, and saying that he criticized politicians for using the central bank to levy inflation taxes on the population, and that his stance in favor of Bitcoin may change the local "game rules".
Millet advocated the return of currency control to the private sector and advocated Bitcoin as a legal tender, but did not propose a formal plan.
He also supports financial decentralization and the replacement of the peso with dollars, known as “economic shock therapy. ”
Millet served as chief economist at Corporación América International and was a member of the World Economic Forum (WEF).
The position is often related to traditional finance, and contrasts sharply with pro-Bitcoin views, making his economic policies more complicated.
According to the report, Millet ’ s tenure may lead Argentina to follow El Salvador, using Bitcoin as a fiat currency and as a reserve asset, which is expected to be introduced into the local economy, which can lead to a more decentralized and inflation-resistant financial system, or have a positive impact on the value of Bitcoin.

Title:

Content: Javier Milei is elected president of Argentina.
Libertarian Javier Milei, who won the presidency of Argentina on Sunday, promised a radical overhaul to address decades of policy mismanagement, but his radical and bold ideas also raised doubts.
According to the official electoral body, after Sunday ’ s runoff, 99% of the votes were counted, and Milei received 56% of the votes, beating the 44% of the votes of Sergio Massa, the current economy minister.
The number of votes he won was unexpected, and Massa conceded the defeat before the results were announced.
Speaking to Argentines on Sunday night, Milei said his victory marked the beginning of "the reconstruction of Argentina."
“Today Argentina ’ s decline is beginning to end, ” he said.
“Today, the pattern of poverty in a country that is everywhere is over, one that benefits only a part of the population, while the majority suffers. ”
In the capital, Buenos Aires, hundreds of Milei ’ s supporters honked their horns, set off fireworks and sang his popular song against the political elite, “Get them all off! ”.
Milei ’ s main campaign promises include abandoning the peso and switching to the dollar and shutting down the central bank, while slashing public spending in an attempt to get the country of 46 million people out of trouble.
However, Milei ’ s shock therapy could also set Argentina on an uncertain path, with some economists warning that dollarizing the $622 billion economy while international reserves run out could plunge the South American country into another round of hyperinflation.
At the same time, IMF officials called on the next administration to restart the economy quickly, stressing that there was no time for progressive policies.
Argentina last week released its latest October inflation figures, which rose more than 140% a year to a 32-year high.
Milei will take office on December 10.
Related Posts

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)

Advertisement

Title:

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

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

Background to this:

---

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

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

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

Mileil now fronts up to:

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

Milei (left of screen) and Massa

Title:

Content: Argentina markets edge lower after Milei's key reform bill diluted

Credit: REUTERS/AGUSTIN MARCARIAN

By Walter Bianchi

BUENOS AIRES, Jan 29 (Reuters) - Argentina's bond, currency and stock markets edged lower on Monday, though they avoided a sharp slide after the government was forced to pull a key fiscal section from its major "omnibus" bill aimed at reforming the country's embattled economy.

The South American country's libertarian President Javier Milei agreed on Friday to yank changes to taxation and pensions from the mammoth bill that is working its way through Congress, where the government's minority bloc faces stern opposition.

That should make passing the bill easier, but it also removes key reforms aimed at cutting spending and boosting state revenues to help meet a zero-deficit target this year as the government looks to trim high debts and bring down inflation that is running above 200%.

"We consider that with the exclusion of the fiscal package it is more likely Congress will approve the 'Omnibus Law'," Portfolio Personal Investments said in a note, adding that the hit to markets should be limited as long as the bill moved ahead.

"We would hope that there are no major points of conflict and that it can be approved quickly. Otherwise, it will be a very bad sign for markets."

Argentina's S&P Merval stock index .MERV was down more than 1% on Monday, led by energy and financial sectors, while sovereign bonds also slid around 1.1% on average. The peso currency in parallel markets widely used to access dollars also edged lower.

"The attention this week will remain on the politics, as the extraordinary sessions in Congress move ahead and with the expectation of possible announcements," local settlement and clearing agent Puente wrote.

Congress is set to discuss the omnibus bill on Tuesday.

Milei took office in January pledging to revive the country from its worst economic crises in decades with tough austerity and cost-cutting measures, but he faces a major challenge from opposition lawmakers and street protests.

(Reporting by Adam Jourdan; Editing by Paul Simao)

((adam.jourdan@thomsonreuters.com; +54 1155446882; Reuters Messaging: adam.jourdan.thomsonreuters.com@reuters.net))

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

More Related Articles

This data feed is not available at this time.

Sign up for Smart Investing to get the latest news, strategies and tips to help you invest smarter.

Title:

Content: December 16, 2023

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

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

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

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

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

Source: www.theartnewspaper.com

Title:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Title:

Content: (Bloomberg) -- Argentina’s labor movement is testing popular support for President Javier Milei’s austerity blitz in a national strike less than two months into his presidency.

Thousands of Argentines flooded the streets and avenues surrounding congress during a mass protest Wednesday in Buenos Aires organized by the CGT, one of the South American nation’s oldest and most powerful union groups. The events of the day will help set the tenor of debate as the libertarian economist attempts to slash the size of the state in a bid to tame triple-digit inflation. A key vote on part of that agenda was postponed by lawmakers until next week.

The government projected a sense of calm from afar. “Some thousands striking, some millions working,” presidential spokesman Manuel Adorni tweeted, while Milei — from his official residence in the outskirts of the capital — posted a chart showing money in circulation and the central bank’s liabilities. Security Minister Patricia Bullrich was set to meet with the president later Wednesday about the security response, with her office estimating there were only 40,000 strikers in the street.

Protesters concentrated around Avenida de Mayo and cut off the city’s widest avenue, 9 de Julio, despite strict measures against street blockades Bullrich announced in December. The crowd gathered to watch the principal union leaders deliver a brief address in the early afternoon and began to disperse afterward. In attendance were various Peronist political leaders, including Buenos Aires Governor Axel Kicillof, and members of the country’s biggest unions carrying flags and playing drums.

“They devalued and tripled prices for food, gas, and now they tell us there won’t be pension raises,” Hector Daer, the umbrella labor group’s secretary general, told the protesters. “That’s why we are telling members of congress to act in line with their popular mandate.”

Truckers union leader Pablo Moyano sent a sterner message to Economy Minister Luis Caputo, who is helming the government’s aggressive spending cuts: “If he continues with these measures, Minister Caputo will be thrown to the Riachuelo,” a famous Buenos Aires river.

Moyano later backtracked on his comment, calling it a metaphor. Referencing the initial statement, Caputo said on social media that he hopes the justice system gets involved.

After taking office in December, Milei issued a decree deregulating vast swaths of the economy and sent a sweeping package of free-market reforms to congress. He unfroze prices for thousands of everyday products and is advancing steadily on the removal of generous electric, gas and transport subsidies, amid annual inflation hurtling beyond 211%. While the CGT successfully challenged labor provisions of the decree in court, a vote on the so-called omnibus bill is headed for the floor of the lower house.

Milei has stuck to the bombastic rhetoric of his campaign but also taken a pragmatic turn by withdrawing a proposal to privatize state-owned oil company YPF SA from his package of legislative reforms. The bill’s passage will be crucial for his government to meet targets laid out by the International Monetary Fund in its latest review of Argentina’s $44 billion aid program, the multilateral lender’s largest.

“Depending on how many people they mobilize, the union will be able to demonstrate how much weight it carries at the negotiating table,” political analyst Raul Timerman said in an interview. “If the protest is massive, lawmakers will have a harder time voting in favor of the government. But if the protest fails, it will make clear Milei still counts on the support of the population.”

How the authorities respond to the protest, the earliest strike ever called after a presidential inauguration in Argentina, will also be telling. In addition to the pre-emptive measures Bullrich announced in December, the Adorni said last week workers who participate in the strike would be docked a day’s pay.

Work stoppages began at noon and are set to last through midnight, while public transport is scheduled to run through the late afternoon in order to facilitate access to the demonstrations, although demonstrations blocked bus lanes in some parts of the city and TV reports showed some subway stations closures in the early afternoon. The protests are being led by unions representing truckers, sanitation, construction and gas station workers.

The strike has already disrupted transportation. Airlines including Gol Linhas Aereas SA, Aerolineas Argentinas SA and JetSmart have announced cancellations or delays for Argentina flights, while shippers including Agencia Maritima Nabsa SA told clients the protests will affect port operations.

Milei’s party holds just 15% of the lower house and 10% of the senate, while the Peronist movement it defeated and its left-wing allies have just under half of votes in each chamber. The libertarians are counting on the support of the main pro-business opposition bloc founded by former President Mauricio Macri and more moderate members of two other parties to push through their reforms.

The strike could tilt political will in Milei’s favor if it unites a fractured political group pushing for change, according to political scientist Gustavo Marangoni.

“Ultimately, politics boils down to rivalries,” said Marangoni, director of M&R Asociados in Buenos Aires. “The government will say to the different factions, ‘We may have our differences, but we are against the Argentina that today took to the streets.’”

--With assistance from Daniel Carvalho.

(Updates with comments made at protest by union leaders, street blocks)

©2024 Bloomberg L.P.

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)

Title:

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

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

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

Title:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Title:

Content: Govt wants to shield poor from high living costs, how to fund it is the question - Godongwana

0:00
Subscribers can listen to this article
Finance Minister Enoch Godongwana.
Mlungisi Louw

Finance Minister Enoch Godongwana said there’s a legitimate argument for shielding the poor against the impact of rising living costs, but determining the kind of support that should be provided and how to pay for it remains a work in progress.

"We need to discuss what is the appropriate form of cushioning the vulnerable," the minister said in an interview in Johannesburg on Thursday. "The next set of issues then is how are we going to fund that."

The government began paying low-income households monthly grants of R350 after the onset of the coronavirus pandemic in 2020, and has renewed the temporary stipend three times since then. Last month, it was extended until the end of March 2024. Civil rights groups have been pushing for a permanent income grant, a proposition the National Treasury has resisted so far.

Further support can only be financed with additional taxes or by reprioritising spending, or a combination of both, according to Godongwana. But increasing personal income taxes will exacerbate the problem of rising living costs, raising company levies will result in workers being fired, and value-added tax is a blunt instrument that hurts the poor and rich alike," he said.

We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For 14 free days, you can have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today. Thereafter you will be billed R75 per month. You can cancel anytime and if you cancel within 14 days you won't be billed.
Subscribe to News24
Rand - Dollar
17.47
+1.8%
Rand - Pound
20.34
-0.7%
Rand - Euro
17.71
+0.6%
Rand - Aus dollar
11.41
+0.2%
Rand - Yen
0.12
-0.1%
Gold
1,738.45
+1.8%
Silver
21.66
+2.8%
Palladium
1,906.10
+2.1%
Platinum
1,027.47
+4.0%
Brent Crude
92.65
-2.9%
Top 40
63,938
+1.4%
All Share
70,579
+1.4%
Resource 10
69,250
+1.3%
Industrial 25
82,966
+1.8%
Financial 15
16,049
+1.1%
All JSE data delayed by at least 15 minutes
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders

Title:

Content: Search

03 Feb 2022

Concerns raised in Carlow over impact of rising energy costs

Concerns have been raised about the impact of rising energy costs on people on a fixed income such as a pension and eligible for the Household Benefits Scheme

Fianna Fáil TD for Carlow, Jennifer Murnane O’Connor has raised concerns about the impact of rising energy costs on people on a fixed income such as a pension and eligible for the Household Benefits Scheme.

Deputy Murnane O’Connor commented:

“Now that restrictions have been lifted, I am meeting more constituents in my clinics and the cost of energy is an issue which is of particular concern. I see this most acutely for those on a fixed income such as a pension and eligible for the Household Benefits Scheme. I have raised this pressing issue with Minister Humphreys.”

She added: “We need plans to meet the increased cost to recipients of the household benefits package in relation to the electricity price increase which came into effect on 1 October 2020.”

In response, the Minister stated: “Any decision to increase the electricity and gas aspect of the package would have budgetary consequences and would have to be considered in the context of overall budget negotiations.”

The Minister went on to state that the Government is committed to protect vulnerable households from energy poverty.

In light of ESRI research and the commitment to ensure that the carbon tax is progressive, the Government has committed to very significant increases in a targeted package of social protection supports in Budget 2022.  These supports were selected to counteract the impact of the increased carbon tax on low-income households.

The specific measures are:

  • An increase to the Qualified Child Payment of €2 per week for children under 12 and €3 per week for children over 12
  • An increase in the Living Alone Allowance of €3 per week
  • An increase to the Fuel Allowance of €5 per week
  • An increase in the income threshold for Working Family Payment of €10 per week

Analysis undertaken estimates that the net impact of the combined measures is progressive.  Households in the bottom four income deciles will see all of the cost of the carbon tax increase offset, with the bottom three deciles being better off as a result of these measures.

As well as increasing the weekly rate of fuel allowance with immediate effect, we also made a number of reforms to the fuel allowance scheme in Budget 2022, including:

  • Increasing the weekly means threshold by €20 to €120, representing a 20% increase and enabling more people to qualify for this support.
  • The qualifying period for Jobseeker’s and Supplementary Welfare Allowance recipients was reduced from 15 to 12 months with effect from September 2022, again enabling more people to qualify for the support.

The recently announced Electricity Costs Emergency Benefit Payment is a key measure being developed by the Government to help mitigate the effects of the recent unprecedented rise in electricity prices.

The scheme, under the auspices of the Minister for Environment, Climate and Communications and supervised by the Commission for the Regulation of Utilities will be paid in addition to the gas and electricity element of the HHB package to qualifying households.

Approximately 2.1m households will benefit by €100 each from the new scheme. Primary and secondary legislation will be required and it is expected that payments will begin in Quarter 1 2022.

The Minister added that provision of income support is only part of the answer in terms of addressing energy costs.

One of the best ways to tackle energy costs in the long term is to improve the energy efficiency of the dwelling through proper building and household insulation.  This is the responsibility of the Department of Environment, Climate and Communications, the Department of Housing, Planning and Local Government and the Sustainable Energy Authority of Ireland (SEAI).

The SEAI provides a range of schemes in this area including the Better Energy Homes scheme, the Better Energy Warmer Homes Scheme, the Better Energy Warmth & Wellbeing Pilot Scheme, the Deep Retrofit Pilot Scheme, Better Energy Communities and Free Energy Efficiency Upgrades (co-funded by the Irish Government and European Union and delivered by the SEAI).

Under the Supplementary Welfare Allowance scheme, exceptional needs payments may be made to help meet an essential, once-off cost which customers are unable to meet out of their own resources, and this may include help towards the cost of utility bills. Decisions on such payments are made on a case-by-case basis.

To continue reading this article for FREE,
please kindly register and/or log in.

Registration is absolutely 100% FREE and will help us personalise your experience on our sites. You can also sign up to our carefully curated newsletter(s) to keep up to date with your latest local news!

Register / Login

Buy the e-paper of the Donegal Democrat, Donegal People's Press, Donegal Post and Inish Times here for instant access to Donegal's premier news titles.

Keep up with the latest news from Donegal with our daily newsletter featuring the most important stories of the day delivered to your inbox every evening at 5pm.

Title:

Content: ‘Legacy budget’ should tame high cost of living

Treasury Cabinet Secretary Ukur Yatani unveils his revenue and spending plans for the new financial year today. This can be termed as a ‘legacy budget’ for President Uhuru Kenyatta, being the last one in his tenure, and an opportunity for the Jubilee administration to correct its missteps in dealing with the runaway cost of living.

The 2021/2022 Budget is specially unique, considering the fact that the economy, which is yet to shake off the shocks of the Covid-19 pandemic, is battling fresh threats from rising external inflation due to record rallies in global prices of key import items like petroleum, food grain, fertiliser and industrial raw material. That calls for good planning; while the economic engines must be kept running, the plight of vulnerable households must also be addressed to balance the equation.

As elsewhere, Kenya responded to the crisis by slowing down on some non-essential expenditures and pumping billions of shillings in subsidies to cushion consumers from the full impact of increases in international prices of commodities such as petroleum and fertiliser. While these measures had some fiscal effect, the state must shift gears and go for high-impact solutions to the specific main challenges facing households.

We hope Mr Yatani will directly address the high cost of food in his expenditure plans. Food is the biggest concern for households following back-to-back seasons of irregular rainfall in key producing areas. Urgent steps must be taken to ensure adequate stocks of affordable food of good quality because of the rising uncertainty in the global and regional markets. That calls for a review of import tariffs on key food items to adequately cushion households from the impact of the already inflated cost of supplies in the source markets.

The government should also channel more resources to the various cash transfer programmes for vulnerable groups—such as the poor, the older people and persons with disabilities—to make an impact at the bottom of the pyramid.

Other subsidy programmes, such as those concerning fuel, tend to benefit the pockets of the well-off part of the population with high levels of consumerism. The cash transfer programmes, however, have a direct impact on the vulnerable.

Welcome!

You're all set to enjoy unlimited Prime content.

Title:

Content:
Saturday April 08, 2023

Protecting the poor

April 08, 2023

LAHORE: The World Bank in a recent report states inflation erodes the real incomes of people while high inflation affects the poorest much more than the richest segments of the population.

It recommends that to better protect vulnerable groups and promote economic growth, policies should take into account the varying impacts of inflation across different income levels and use more precise indicators to measure the actual cost of high prices on the poorest.

Pakistan is facing extremely high inflation and our government responded to the cost of living crisis with social assistance and subsidies.

The government however was not in a position to facilitate the citizens with moratorium on increase in energy prices, or reduce public transport fares.

It could not even cap the electricity and power tariff like many resourceful countries did. In fact, the cost of all these services increased in Pakistan as the inflation in the country crept up to a higher level.

The World Bank report, however, in its analysis said even the above measures do not mitigate the burden on the poor because the cost of living for the poor is higher than the rich.

Its study found that inflation was 2 percent higher for the poorest 10 percent population compared to the wealthiest 10 percent.

In some countries, the difference exceeds 5 percent.

But Pakistan was not among the countries analysed in the study.

The super inflation in Pakistan most probably burdens the poor by over 20 percentage points.

The main finding of the WB report was that policies generally do not account for different inflation rates faced by the household and are likely to provide inadequate support to vulnerable groups and may end up being both inefficient and less effective, the report noted.

It recommends going beyond the standard consumer price index (CPI) to measure inflation in order to capture more precisely the actual cost of living of the poorest. This is essential for designing better growth and poverty alleviation policies.

In Pakistan, the government provides cash to the head of the family registered in the Benazir Income Support Programme. The head usually is the male member of the family.

Men particularly the poor are cigarette smokers as well.

Their family basically needs food which may not be available to many where the head of the family uses most on smoking or other addictions.

In the United States, the poor are issued food coupons against which only essential food items can be purchased from a large number of private stores. They cannot buy cigarettes from these coupons.

In Pakistan, the government provides free atta or some edibles through Utility Stores that are few in number and mad rush results in injuries and deaths as well.

We can issue food coupons and permit the poor to redeem them for any store (that must be registered). Many private stores would like to be registered as it would enhance their sales. NADRA can add a software in National Identity Cards under which the total subsidy amount for food is made available every month.

The purchases can be made by swiping the card by the store keeper, when the

entire amount is consumed further purchases can be blocked till the card is refilled next month.

We must use technology to spare the poor from humiliation and hassle to spend the whole day buying subsidised food items.

Title:

Content: KUALA LUMPUR: The 12th Malaysia Plan has failed to rethink social protection and make it a key policy to drive the nation forward to “build back better” in a post Covid-19 environment, Charles Santiago (PH-Klang) said today in a press conference at Parliament.

“The Covid-19 pandemic has exposed wide gaps in the country’s social protection system with many individuals and businesses falling through the cracks.

“The government must look into an inclusive system which narrows poverty and addresses vulnerability or ‘Keluarga Malaysia’ and Shared Prosperity will remain pleasant and eye-catching only on paper,“ he said.

“ Investing in social protection can create domestic demands and generate large positive multiplier effects on the economy and support social and political stability,“ he added.

According to Santiago, a robust social protection system aims to reduce poverty, inequality and vulnerability in the labour market. In addition it is designed to boost human capital, empower women and respond to economic uncertainties.

In the last two years, he pointed out that the system was ineffective and inadequate in responding to job losses, loss of livelihood and income during the pandemic.

He then cited data from Employees Provident Fund which stated that a total of 46% or 7.32 million EPF members below the age of 55 have less than RM10,000 in their accounts.

In the second quarter of 2021, Santiago said the Department of Statistics Malaysia showed that around 143,500 between 45 and 64 year old have lost their jobs while 283,000 between the ages of 15 and 24 became unemployed in the same period.

He also suggested the government to seriously consider amending the law and establish an Employment Insurance Scheme for informal workers as a way of providing them with income security.

Furthermore, he said the government should revamp the existing Bantuan Sara Hidup (BSH) programme by providing an urgent RM1,000 monthly cash transfer to the absolute and hardcore poor households, including groups who have lost their jobs during the pandemic.

Additionally, he said the government should review and implement a new minimum wage system supported by a separate fund to help reduce the burden of Small Medium Entrepreneurs (SMEs).

“It should allocate an annual fund of RM15 billion during the transition period towards the effort,“ he added.

Title:

Content: Argentina ’ s presidential candidate, Mirai, said he would freeze trade relations with China, asking “Do you want to do business with murderers? ”
Argentine presidential candidate Millai expresses concern about relations with China. Photo Credit: GettyImages
What we want you to know is
When asked how he sees relations with China, Argentina ’ s second-largest trading partner, Millet said he would not do business with China: “In China, people are not free, they can ’ t do what they want, and when they do, they get killed, ” Millet asked a Bloomberg reporter:“ Would you do business with murderers? ”
Javier Milei, who has just won Argentina ’ s presidential primary, said that if he wins the presidential runoff on October 22, he will freeze official trade relations with China, asking “Will you do business with murderers? ” There will be different answers to China ’ s freedom and security.
The results of Argentina's presidential primary election on the 13th of this month shocked the society, the far-right liberal economist Millet won the highest number of votes with more than 7 million votes, beating the ruling party and the largest opposition party in Argentina's election, and is likely to become the next president of Argentina in the next final election.
Bloomberg published an interview on Monday detailing how he handles Argentina ’ s international affairs.
In the interview, Millet said Argentina ’ s priority is to do business with “the civilized side, ” that is, the West, such as the United States and Israel.
Asked how he sees relations with China, Argentina's second-largest trading partner, Millet said he would not do business with China:
“In China, people are not free, they can ’ t do what they want to do, and when they do, they ’ re killed, ” Millay asked a Bloomberg reporter,“ Do you do business with asesino? ”
Millay said he would not do business with Communists, including Cuba, Venezuela, North Korea, Nicaragua and China, and that China could be a business partner for Argentine private enterprises, that he would not interfere, but that his government would not sign agreements with the Communist Party or encourage relations with it.
A rupture in relations with China would do little harm to Argentina.
China is Argentina ’ s second largest trading partner after Brazil. According to 2022 data, Argentina has a trade deficit with China of US $9.494 billion, exports of US $8.022 billion and imports of US $17.516 billion.
China has also provided Argentina ’ s central bank with $18 billion in currency swaps to repay Argentina ’ s debt to the International Monetary Fund.
Millet ’ s economic adviser, Diana Mondino, who is expected to become his foreign minister in the future, rushed to put the fire on Millet in an interview, saying that Millet ’ s remarks about China actually meant that “we will not accept the signing of opaque, opaque, confidential agreements, ” and she criticized the current economy minister, Sergio Massa, who is also a presidential candidate, for negotiating with China. How much our country will pay for the yuan is inappropriate in state-to-state relations. ”
And Chinese Foreign Ministry spokesman Wang Wenbin was asked about Milai's remarks at a regular press conference on the 17th, Wang Wenbin said that China is a country under the rule of law, and the personal freedom of Chinese citizens is sacred and inviolable under the protection of the Constitution.
Under the leadership of the Chinese Communist Party, China has achieved two miracles of rapid economic development and long-term social stability, and the happiness and security of the Chinese people are increasing day by day.
Wang also welcomed Millet's "come to China for a walk and a look," saying he believed he would come up with a completely different answer to "the question of whether the Chinese people are free or not, and whether China is safe or not."
In the same interview, Millet also said he would withdraw from Argentina ’ s MERCOSUR with Brazil, Uruguay and Paraguay, calling the MERCOSUR “a very poor customs union that creates trade inequality and hurts its members. ”
The MERCOSUR has yet to reach a free trade agreement with the EU due to internal disagreements (the Argentine government wants to protect its economy from international competition, while the governments of Uruguay and Brazil want to further remove trade barriers).
Asked if he wanted former US President Donald Trump, whom he revered, to return to the White House, Milay cautiously replied that “the question is for the Americans to decide, ” but said that“ I probably prefer the Republican image to the Democratic Party, ” stressing that the US is an important strategic partner for Argentina and supports the move of the Argentine embassy in Israel from Tel Aviv to Jerusalem. The policy is the same.
Argentina ’ s primary results last weekend hit the market hard, with the Argentine peso falling by more than 20% and Argentina ’ s inflation rate reaching 113% and rising rapidly.
Many businesses in Argentina have not been able to readjust their prices, some have directly marked the price of foreign currency against the peso, and some have simply suspended supply, resulting in many goods being blocked.
As a response, the government of Argentina has frozen fuel prices until October 31.
Extended reading
(Join the critical review network member) Daily wonderful articles sent directly to your mailbox, each week exclusive editorial selection, current affairs selection, art weekly newspaper and other special electronic newspapers.
You can also leave comments with authors, journalists, and editors to discuss the content of the article.
Join now for free!
Editor-in-chief: Chiu Yijun

Title:

Content: Chinese Foreign Ministry spokeswoman Mao Ning told a news conference on Tuesday that Argentina would make a "grave mistake" at the diplomatic level if it severed ties with major countries such as China or Brazil.
China is an important trading partner for Argentina, whose elected government attaches great importance to relations with it, Reuters reported.
Asked by reporters to comment on the remarks of Diana Mondino, an economist nominated for foreign affairs in Argentina ’ s new government, Mao said: “The two countries have strong economic integration and huge potential for cooperation.
China intends to continue cooperation with Argentina to promote the stability and long-term development of bilateral relations.
Milly's statement.
The announcement comes just after the election of hard-line liberal Javier Miley as Argentina ’ s new president, who won a surprise with 55.95 percent of the vote.
In his speech, Milley criticized China and Brazil, saying he would not deal with "communists" and would prefer to strengthen ties with the United States.
Stressing the end of the period of decline "and the start of the" reconstruction of Argentina ", he warned that there will be no" half-solutions ", according to" AFP ".
Mondino
RIA Novosti news agency quoted Diana Mondino, an economist who is a candidate to become foreign minister in the Miley administration, as saying her country would not join the BRICS.
Argentina was among six countries invited to join the BRICS bloc, which includes Brazil, Russia, India, China and South Africa.
Asked whether Argentina would encourage exports and imports with China and Brazil, Mondino replied that Argentina would "stop doing business" with the governments of those countries.

Title:

Content: Argentina government says Milei's China trip not confirmed but could happen

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

BUENOS AIRES (Reuters) -Argentina's government rejected media reports on Thursday that President Javier Milei would travel to China in the coming weeks and meet with Chinese President Xi Jinping, saying that while such a trip could happen it was not confirmed.

Local media, including newspaper Clarin, reported earlier that the trip was set for the coming weeks.

"Not only is there no date, there is nothing, absolutely nothing confirmed," government spokesman Manuel Adorni told reporters, adding that neither China nor Argentina had requested a bilateral meeting.

"That does not mean that it will not happen, but the information is not confirmed."

Reports of a trip to China, the South American nation's no. 2 trade partner, surfaced a day after Argentina's central bank announced that Argentina and China had renewed the activated part of a major currency swap line for the equivalent of $5 billion through July 2026.

Argentina had faced the prospect of billions of dollars' worth of repayments on the swap this month and next if it did not reach an extension with China, a potential headache for Milei with reserves depleted.

Milei, a libertarian economist, insulted communist-run China in his campaign last year but has struck a more diplomatic tone since taking office in December.

(Reporting by Gabriel Araujo and Adam Jourdan; Writing by Brendan O'BoyleEditing by Valentine Hilaire, Lisa Shumaker and Frances Kerry)

Title:

Content: It's like dealing with an assassin!
"Argentina Trump" wins election to face challenges in relations between two countries
International Center Tsai Sha-ling / General Report
Argentina's presidential election, won by 53-year-old far-right liberal economist Javier Milei, known as "Argentina Trump", in the past, in an interview with foreign media, described "developing relations with the Chinese government is like doing a deal with an assassin", so whether he will affect Sino-Argentine relations has also raised concerns, although the Chinese Foreign Ministry has expressed his election. Congratulations.
This is an advertisement, please continue reading.
In an interview in August, Mirei said that people in China are not free to do what they want, or they will be killed, questioning whether anyone really wants to make deals with assassins and whether it is necessary to develop trade relations with the Asian country.
In addition, Diana Mondino, who is thought to be a possible foreign minister in the Mirei cabinet, also pointed out that it is likely to stop trading with opaque countries such as China, do not negotiate secret contracts, and Argentina will not join the BRICS.
For Mondino's remarks, Chinese Foreign Ministry spokesman Mao Ning responded at a regular press conference on the 20th, did not grasp the relevant situation, emphasizing that the BRICS cooperation mechanism is an important platform for emerging market countries and developing countries to strengthen unity and cooperation, safeguard common interests, and is also an open platform, China welcomes any willing countries to become a member of the BRICS family.
Chinese state media Global Times quoted Wang Youming, an expert at the China Institute of International Studies in Beijing, as saying that considering Argentina ’ s desire to get out of economic difficulties and leave its major trading partners – Brazil and China – is not a wise move, especially since China is Argentina ’ s second largest trading partner and the largest purchaser of agricultural products.
The Global Times also mentioned Mirei ’ s radical comments during the election campaign, claiming that he would not do business with communist countries, and advocating breaking ties with China and building ties with the “civilized world ” led by the United States, perhaps just to“ catch the eye ” during the election, Mirei will soon realize that Argentina can ’ t get out of the way without China ’ s help. Indeed, it is possible that the bilateral relationship will enter a “testing period. ”
In recent years, Argentina has been mired in economic crisis, inflation reached 116%, the cost of living is too high, resulting in 4 out of 10 people into poverty, voters may see Mirei as the savior, away from traditional politicians "alternative", but many economists believe that Mirei's political views, including the use of dollars to replace the peso and the closure of Argentina's central bank, whether it is feasible.
This is an advertisement, please continue reading.

Title:

Content: Why did Argentina give up on joining the BRICS?
You don't have to be too serious about the new president, Millet.
Author: Ye Dehao
Published: Updated:
December 29 is the last government working day in 2023.
The Argentine government issued a letter to the BRICS countries as early as the 22nd, indicating that Argentina is not suitable for joining the BRICS at present, saying that its foreign policy is very different from the previous government.
Argentina ’ s new president, Javier Milei, a far-right liberal who was sworn into office on December 10, has been highly pro-American and pro-Israel, and his formal decision to forgo joining the Golden Brick, which is seen as close to China, comes as no surprise.
Negotiations are fruitless?
After Millet ’ s victory in the second round of voting at the end of November, Chinese Ambassador to Argentina Wang Wei quickly met with then-Foreign Minister Diana Mondino, and Millet himself released a Spanish translation of a personal letter sent to him by Chinese President Xi Jinping, thanking Xi Jinping for holding up a letter of “common interest ” between China and Argentina.
Although Millet, who had indicated during the election that he would not talk to communist countries (for Millet during the election campaign, this included China and Brazil), expressed goodwill, the foreign minister said publicly on social media in early December that he would not join the BRICS.
Subsequently, at the invitation of Argentina, China sent special envoy of President Xi Jinping and Vice Chairman of the Standing Committee of the National People ’ s Congress Wu Weihua to Buenos Aires to attend the inauguration ceremony of Milai on December 10, and met with Milai with Wang Wei the following day.
Mirai later wrote back to China, which Argentine media said contained references to a currency swap agreement between China and Argentina, when one of Argentina ’ s loans to the International Monetary Fund (IMF) was due to be repaid.
Later, Chinese officials also met with Milay ’ s nominee for governor of Argentina ’ s central bank (although Milay had stated during his campaign that the central bank would be abolished and fully dollarized), as well as his economy minister, Luis Caputo.
Ukrainian President Leonid Zelensky also attended the inauguration ceremony of Millet.
(Reuters)
In the end, there seems to be no progress on the currency swap agreement and the related issues of joining the BRICS.
By December 14, Reuters had reported that Milay had reached a loan agreement with the Development Bank of Latin America and the Caribbean (CAF), allowing Argentina to repay the IMF as scheduled on December 21.
On December 19, Argentine media revealed that China had suspended the currency swap agreement with Argentina, saying that Beijing had recalled Wang Wei to Beijing the previous day.
The letter from Argentina renouncing its accession to the BRICS came on the 22nd.
Argentina ’ s renunciation of BRICS membership has been widely interpreted as a setback for China ’ s efforts to “expand ” solidarity with the global South at the BRICS summit in South Africa in August 2023.
At that time, the BRICS decided to invite the United Arab Emirates, Saudi Arabia, Iran, Argentina, Egypt, and Ethiopia to join the BRICS.
However, to put it another way, Millet ’ s renunciation of joining the Golden Brick was just an act of symbolic significance greater than practical significance, and his attitude toward China and even his right-wing libertarian stance have weakened significantly since his election.
Foreign Minister Guido Mondino has made it clear that he will not abandon diplomacy with China and Brazil (Argentina ’ s first and second largest trading partners, respectively).
Millet has quickly appointed a new ambassador to China, and his letter to the BRICS states that he hopes to deepen bilateral relations and increase trade and investment contacts with other countries, and hopes to meet with the leaders of the BRICS countries.
On December 10, Millet addressed supporters after he was sworn in as president. (Reuters)
During the campaign, there were fears that Millet would behave badly when he came to power.
However, the majority of those who were elected were on the right wing.
For example, Economy Minister Caputo is a member of former President Mauricio Macri ’ s Juntos por el Cambio party, and Central Bank governor Santiago Bausili was Finance Minister from 2015 to 2019.
The Adventures of Shock Therapy
Of course, after coming to power, Millet quickly pushed for “shock therapy ” economic reforms, immediately devalued the Argentine peso by half (but its exchange rate remained below the black market), and declared a two-year economic emergency, proposing more than 300 measures in the form of presidential decrees, from loosening controls on food retailers to loosening the use of foreign exchange, from privatization of state-owned enterprises to deregulation of proprietary medicines, from labor protection to employee restrictions. All strikes are complete.
Unions in Argentina have mobilized a revolt, but the scale of the demonstrations has not reached enough to worry Millet.
Security officials from the Milai authorities also issued a stern warning against the demonstrations, which seemed to have a degree of deterrent effect.
On December 29, the economic emergency in Milai came into effect, with demonstrators gathering in the streets of Buenos Aires to protest against economic reforms.
(Reuters)
At the end of the year, Millet also sent more than 600 reform bills to Congress, asking Congress to initiate a special session from December 26 to January 31 to help Argentina move forward quickly with reforms.
The bill includes legalizing Millet ’ s previously declared economic emergency, abolishing the primary election system, increasing penalties for various protest-related crimes, protecting the right to self-defense and strengthening the police, listing state-owned enterprises that can be privatized, allowing the legalization of undeclared property, modifying policies related to the oil industry (such as the government will not impose price limits), and temporarily handing the president more legislative powers on taxes, pensions, security, and other items.
Millay ’ s government says it wants to reduce the government deficit to zero by 2024 (which would have been about 5% of GDP), thereby drastically reducing the size of the government, cutting subsidies for electricity and transportation, cutting funding to local governments, and temporarily raising import taxes and increasing benefits such as the value of food cards to help those most in need.
With only 40 of the 257 seats in the Brazilian Chamber of Deputies and 7 of the 72 seats in the Senate, Millet ’ s party, even with less than half of the traditional right-wing “working together to change ” support, is hoping to use popular opinion to put pressure on Congress to show that if Congress is unwilling to pass his reform bill, it will resort to the law (no law). Binding) referendum.
[Here: Chainsaws are a symbol of Millet ’ s reformist economy, and he often picks them up to campaign events.]
Millet ’ s “crazy ” economic reforms, and the voters ’ support for him, are understandable. After all, Argentina ’ s economy has been a tragedy for more than a century, and its per capita GDP was higher than that of Germany and France 100 years ago, but it is now several times behind them, from advanced countries to developing countries.
According to statistics, its ratio of negative growth to positive growth has been worse than that of war-torn Iraq and Sudan since 1950, and it is now the largest recipient of IMF assistance since its inception.
Not to mention that Argentina has an inflation rate of more than 100%.
Millet has long shown that his shock therapy will bring economic pain, but voters have limited tolerance for the pain, and the pain is likely to grow.
The street demonstrations are not threatening Millet at this point, but if Millet ’ s new deal doesn ’ t work, the situation will be very different in a few months.
In the midst of a crisis-ridden march of economic reform, Millet ’ s foreign policy will remain at the symbolic level, and will never dare to do anything that will really negatively affect the Argentine economy.
Giving up on joining the Brick is just one example.
We don ’ t have to read this diplomatically too seriously — it ’ s just the political norm in Latin America, where the ideologies of the right and the left are fiercely opposed.

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.)

Give Feedback

Title:

Content: Chairperson of the Industrial Union Riku Aalto attended a joint press conference of trade unions in Helsinki on Thursday, 21 September 2023. The Industrial Union will organise a number of hour-long walk-outs and work stoppages this week across Finland. (Antti Aimo-Koivisto – Lehtikuva)

Domestic
Tools
Typography

TRADE UNIONS in Finland have detailed their first protests against the labour market reforms and social security cuts planned by the government, reports Helsingin Sanomat.

The Industrial Union, Trade Union Pro and Finnish Electrical Workers’ Union on Saturday revealed they will organise short work stoppages, walk-outs and protests this week at a number of workplaces in Satakunta and Southwest Finland.

Electrical workers, for example, will stage stoppages at Turku Energy and Olkiluoto Nuclear Power Plant.

The Industrial Union last week also announced a series of hour-long walk-outs at workplaces in northern and eastern parts of the country. Service Union United (PAM) and the Finnish Construction Trade Union, in turn, will stage demonstrations outside working hours in Joensuu, Mikkeli and Kuopio on Thursday.

The industrial actions are part of protests that will take place three days a week for the next three weeks, union bosses revealed at a joint conference hosted last Thursday by the Central Organisation of Finnish Trade Unions (SAK).

The bosses indicated their readiness to to ramp up the measures if necessary.

Minister of Finance Riikka Purra (PS) on Friday issued a press release accusing trade unions of lying, distorting facts, making threats and promoting activities of the political opposition in their opposition to the reforms and spending cuts. Trade unions, she added, have been unwilling to discuss working-life reforms in a fashion that is genuine and focused on finding common denominators.

Provisions in the government programme have been “clearly misunderstood either intentionally or unintentionally” by union bosses, according to Purra.

She referred to the plan to relieve employers not covered by a collective bargaining agreement of their obligation to pay employees for the first day of a sick leave.

“No one’s pay during sick leave will be cut automatically. This kind of a claim is simply a lie,” she stated.

Her statement is at the very least misleading, according to Helsingin Sanomat. About 11 per cent of employees in the country are not covered by a collective bargaining agreement, meaning they would be affected by the revision if they have not agreed locally on pay during sick-leave pay.

Riku Aalto, the chairperson of the Industrial Union, responded to Purra by asking what are the merits of drafting a piece of legislation that is not expected to have any practical impacts.

Finnish trade unions have also expressed their concern about the proposal to rein in political strikes with the introduction of a maximum duration of one day for such strikes, the proposal to rephrase the criteria for terminating an employee on personal grounds and the proposal to disable the national conciliator or another conciliatory body from offering wage increases that exceed those in export-oriented industries.

The government is also set to relax the rules concerning notices for temporary lay-offs, remove the re-employment requirement for companies with fewer than 50 staff and allow employers to offer one-year fixed-term contracts without special reasons.

Many of its spending cuts are targeting social security.

The cuts have been justified by citing their expected impact on employment and public finances – with varying degrees of evidence, wrote Helsingin Sanomat. The first amendments to earnings-based unemployment security have been estimated to grow the number of the employed by 20,000. The Ministry of Finance, on the other hand, has not found research substantiating the reported employment impacts of cutting the housing allowance or promoting local bargaining.

Aleksi Teivainen – HT

Partners

Title:

Content: HI, {{username}}
Manage account
Change password
HEADLINES
{{headlineCount}} new {{headlineCount = = 1?
'update': 'updates'}}
+ MORE HEADLINES
French unions to fight 'mother of battles' over pension reform plan
10.
JANUARY
2023.
A
+
A
- Ah!
Print
Email
Email
A
+
A
- Ah!
French Prime Minister Elisabeth Bourne is preparing to unveil the government's plan to reform the pension system law at a press conference expected today at the headquarters of the prime minister, while observers are likely that France has entered a phase of violent turbulence.
The problem is that the government plan will raise the retirement age from 62 to 64, which is radically opposed by unions of all stripes and opposition parties except for the moderate right-wing Republicans, whose president Eric Ciotti has expressed willingness to vote for “just reform. ”
However, even if the government is able to assemble a parliamentary majority to vote for its plan, it risks a broad front that will turn to the street to express its rejection of what it sees as “injustice ” against broad categories of citizens.
A government under Macron ’ s first term, led by Edouard Philippe in 2018, had for months sought to reform the pension law, but failed to achieve broad consensus.
Her project was withdrawn from circulation after the arrival of the COVID-19 wave in France.
It should be noted that the aforementioned era suffered from the "yellow vests" protest movement, which for months took a violent character and came in protest against the increase in fuel prices and evolved to demand the reduction of taxes, the reimposition of the wealth tax, the raising of salaries and other socio-economic demands.
On Saturday, the “ambassadors ’ jackets ” again took to the streets.
However, the mobilization was weak.
The authorities are concerned about the accumulation of grievances and their overlap, which was warned by a memo prepared by the internal intelligence and revealed by the news channel BFM.
Observers and political analysts recall that former Socialist Prime Minister Michel Rocard was repeating that pension reform would “wipe out five governments ” before it materialized.
He was not mistaken in his expectations, as the issue of reform of the said law is still raised almost always.
Macron, along with the prime minister and the ministers concerned, believes that the motive is “not to reform but to save the pension system ”, which suffers from a high age not only in France but in all the advanced industrial countries, so that the contributions of employees and workers to cover retirement expenses must be prolonged.
Amid the wave of rising prices, especially energy from electricity, gas, oil derivatives, food, and inflation, which erodes the salaries and savings of citizens, especially the most vulnerable segments, the government sought to contain popular resentment by granting financial assistance to specific groups or framing electricity prices for a number of professions, including bakeries.
However, the deterioration of public finances due to the huge cost borne by the public budget during the COVID-19 pandemic and in the past months to alleviate the price of oil derivatives, now obliges it to reduce its aid significantly.
Given the above, and according to opinion polls showing that 68% of the French oppose the government ’ s plans, and given the consensus among the most representative unions to oppose the bill, which will be passed at a cabinet meeting on 23 October, popular protests will be strongest.
Representatives of eight major unions met today to agree on a collective action plan that will include demonstrations, marches and strikes.
The government fears strikes, especially in the public transport sector (trains, metro, buses...).
It will join the strike of doctors and other professional sectors.
The first day of the strike is expected to be decided in the next few hours, whether on 14 or 24 of this, after the government has approved the bill, which will be submitted to parliament at the end of the month.
The rebel France party has already called for a march on January 21.
Frederik Soyo, the head of the Labour Force, who is opposed to these reforms, warned that “if Emmanuel Macron wants to make this the mother of his reforms, for us it will be the mother of battles. ”
For her part, the new head of the Green Party, Marine Tondlier, said: “The debate will take place ” on the street in the face of“ ideological ” and “anti-social ” reform that“ serves the class ” of the well-off, adding that “the government will do everything to dissuade us from going to demonstrations with strong repression. ”
Middle East
MORE ABOUT
ADVERTISE HERE
JUST IN
TRENDING
HEADLINES
{{headlineCount}} new {{headlineCount = = 1?
'update': 'updates'}}
+ MORE HEADLINES
TRENDING

Title:

Content: Protests over pension reform, Macron government, heat up in France

Jeanne Menjoulet via Flickr

Protestors during a demonstration in Paris Jan. 19.

Protests in Paris have escalated over the past week over French President Emmanuel Macron’s pension reforms, with over a million people taking to the streets on March 23, according to CNN.

The reforms, which include raising France’s retirement age from 62 to 64, have been met with a fiery response from the opposition in the French government and the people of France, with large-scale protests taking place in major cities across the country.

Macron’s government enacted a controversial constitutional measure that allowed the law to pass using emergency powers.

We cannot bet on the future of our pensions,” said Prime Minister Elisabeth Borne to the National Assembly. “This reform is necessary.”

Legislators in the opposition have said the use of the measure shows that Macron does not have the necessary votes to pass the legislation.

The voices of the French people seem to support these claims, as protests have reached their peak since beginning in mid-January.

On the night of March 23, French police said 80 people and 123 police officers were arrested nationwide, with over 1,000 people committing acts of violence, according to CNN

Sanitation workers are on strike in Paris, leaving sidewalks piled with trash to add to already fiery protests.

They are not the only workers on strike, with many national unions joining in, most notably teachers.

Macron’s reforms are aimed to push back disaster for an already struggling social support system, with 14% of France’s economic output going towards pensions, according to the Organization for Economic Cooperation.

Eight of France’s largest labor unions have nationwide protests planned for March 28, which has led to the cancellation of a state visit by King Charles of England.

Title:

Content: Cubans await promised government intervention as peso slides further

HAVANA - The Cuban government has promised to take decisive action this month to halt a slide in the peso that has wiped out savings and left Cubans struggling to afford basic goods, but economists Reuters spoke to were skeptical of a quick fix.

The black market peso has slid 20% far this year against the dollar, and has less then 10% of the purchasing power it had in 2019.

Last month, Deputy Economy Minister Mildrey Granadillo de la Torre told a cabinet meeting that measures to tackle the weakening peso were planned for March, including an "adjustment of the exchange rate," according to state media.

Prime Minister Manuel Marrero said in December a major monetary reform would take place this year. Neither official gave further details.

But five Cuban economists Reuters spoke with said that changing course would be difficult.

Cuba has three effective exchange rates. The government has a fixed rate of 24 pesos to the dollar, plus a "discretionary" fixed rate of 120 pesos, used for example for services for tourists and gasoline. And then there is an informal one, which was trading at around 320 pesos to the dollar on Tuesday, according to a tracker provided by independent news outlet El Toque.

Marrero has said taking back control of the monetary system is part of a plan to set the stage for recovery from a crisis that has left gross domestic product 10% below its 2019 level.

The government often lambasts the informal rate as illegal, speculative and part of a U.S. effort to cripple the state-dominated economy.

"This practice that from another country someone using a computer sets the exchange rate must go," Marrero said in December.

But the informal rate is the one that best reflects the true value of the peso, the economists said.

"In reality the informal exchange rate is a reflection of the imbalances in the economy, and it is not the main cause of the problems," former central bank economist Pavel Vidal said in an interview.

He said the peso's plummet this year was on the back of a record fiscal deficit, falling production and the absence of a clear stabilization program and reforms he said were needed.

"The exchange rate will continue to depreciate between 5% and 9% each month," predicted Vidal, who teaches in Colombia and is the most widely read critic of Cuban monetary policy.

For Cubans who have lived through two previous adjustments that did nothing to dampen inflation, demand for dollars is unlikely to decline as imported goods prices rise and people seek to leave the island or a safe haven for their savings.

"I don't have much hope," said Rafael Oliva, a 28-year old who works in the private sector.

"As long as the demand for dollars remains high ... the exchange rate will never go down." REUTERS

Join ST's Telegram channel and get the latest breaking news delivered to you.