Argentina's President Javier Milei has introduced economic reforms, including currency devaluation and the abolition of subsidies for key services.

The government aims for a zero budget deficit, an ambitious goal amid the current economic situation.

Milei's economic plan includes dollarizing the economy and eliminating the Central Bank to combat hyper-inflation.

The plan has sparked controversy and opposition from labor unions and leftist groups.

Milei proposes privatizing state entities and weakening labor protections.

The plan includes a 10-point 'social contract' to be agreed upon by May 25, which involves rediscussing the current tax distribution.

Milei has issued decrees repealing or amending hundreds of laws to curb trade union power and deregulate the economy.

The executive branch may use decrees or regulatory amendments to implement economic reforms without congressional support.

The government's economic reform approach may bring efficiency and growth, but also risks social welfare and stability.

Milei's economic plan's success depends on balancing reform with social welfare and stability, while addressing labor unions, civil servants, and creditors' concerns.

Milei's policies may disproportionately affect low-income households.

Small businesses reliant on government contracts or subsidies may be affected by Milei's policies.

Milei's policies may affect indigenous communities through economic changes and environmental implications, given his views on climate change.

Argentina's government, led by President Javier Milei, faces mass protests and a general strike over its ultra-liberal economic policies.

The government sees reforms and austerity as necessary to address the country's debt and stabilize the economy, which had a 2.9% budget deficit in 2023.

The country's economy is stifled by 211% annual inflation, while the government struggles to pass the 600-bill Omnibus Law.

The Argentine Senate is debating President Javier Milei's economic reform bill, which has sparked protests outside Congress.

The bill has passed the lower house, but faces uncertain passage in the Senate due to likely opposition from the Peronist bloc.

President Milei's government lacks a majority in both chambers, forcing it to bargain for allies to pass the bill.

The government removed the fiscal section, including tax hikes and pension reforms, to ensure the bill's passage in Congress.

Argentina's parliament has narrowly passed President Javier Milei's economic reform plan with Vice President Victoria Villarruel's decisive vote.

The reforms, including pension cuts and diluted labor rights, have sparked concerns they will hurt millions of Argentines.

The government's emergency decree introducing sweeping reforms has sparked opposition and protests.

The government has introduced an 'anti-picket' protocol to control protests, which critics say violates the right to protest.

Economy Minister Luis 'Toto' Caputo has announced tax hikes contradicting President Milei's campaign promises.

Argentina's government, led by President Javier Milei, is implementing austerity reforms, sparking protests over social benefits for impoverished families.

Austerity measures are being met with opposition and protests in central Buenos Aires.

Argentina's top court has blocked some of Milei's labour reforms.

The government's proposed package of economic, social, and political reforms has passed its first parliamentary test.

Argentina's reforms target its economic crisis, with inflation over 200% and poverty at 40%.

President Milei has liberalized the economy by devaluing the peso, cutting fuel and transport subsidies, and reducing ministries by half.

The reform package covers various areas, including privatization, cultural issues, penal law, divorce, and football clubs.

The opposition fears the reforms will worsen social and economic problems, citing the 2001 crisis as an example.

The IMF will disburse $4.7 billion to Argentina to support Milei's reforms, sparking parliament protests.

Javier Milei introduced a neoliberal program to address Argentina's inflation crisis.

The program has been met with opposition due to concerns about its impact on social stability and citizens' rights.

Balancing economic reform with social stability and citizens' rights will be a key challenge.

The reform package may reshape Argentina's economic and social landscape, reflecting the country's complex socio-political reality.

Javier Milei's dollarization plan may burden the private sector, but he calls it 'transitory'.

The government aims to avoid hyperinflation by implementing a 'hyper-orthodox adjustment' with a restructured Central Bank and a sincere exchange market.

Dollarizing the economy would require congressional approval and possibly a constitutional change in Argentina.

Argentina lacks $35-50 billion to replace pesos and may struggle to borrow it.

Dollarizing an economy can be painful, especially for those with existing deposits, due to the exchange rate used for conversion.

Milei's proposed reduction of government size will face opposition from civil servants who may lose their jobs.

Privatizing government functions can be fraught with difficulties and cause years of disruptions.

Argentina's president serves a four-year term, potentially too short to see the benefits of radical free-market reforms.

Milei's coalition lacks a Senate majority, requiring coalition-building to pass laws.

Argentina's heavy debt, including to the International Monetary Fund, may limit Milei's ability to implement reforms.

The government will meet with provincial governors to address the local economic impact and coordinate a response.

Some provinces, like Santiago del Estero and San Luis, have declared economic emergencies due to recent measures impacting local economies.

Córdoba, Santa Fe, and Entre Ríos have expressed concerns over increased export duties.

The President has pledged to eliminate things libertarian liberals dislike after rearranging the economy.

Argentina's President-elect Javier Milei plans to replace the peso with the US dollar.

Dollarization could deplete Argentina's US dollar reserves, potentially leading to hyperinflation.

Dollarization may offer Argentina a safe path to avoid monetary collapse and implement needed reforms.

Argentina's central bank lacks independence, and dollarization may be a solution.

Argentina's risk of hyperinflation stems from the central bank's lack of restraint, not dollarization plans.

Milei's plan aims to slash spending and achieve a budget surplus in a country with a history of fiscal mismanagement.

The defeat of a recent omnibus bill highlights challenges for Milei's ambitions.

Javier Milei introduced a neoliberal program to address Argentina's inflation crisis.

Milei has introduced an 83-page decree to repeal over 300 laws, facilitating privatization and deregulation.

The NDU includes measures like eliminating supermarket and rent regulations, and labor reforms to cut pregnancy leave and extend job probation periods.

Argentina's economic reform package targets its crisis, marked by over 200% inflation.

President Milei blames the economic crisis on excessive spending by previous Peronist governments.

Javier Milei's economic plan includes budget cuts and tax hikes to achieve a fiscal surplus in his first year.

The plan involves devaluing the peso-dollar exchange rate to 800 pesos, a 120 percent decrease.

Economy Minister 'Toto' Caputo's measures have sparked alarm, with rising prices, especially for gasoline and food, signaling a potential spike in inflation.

Milei needs legislative support for his reform package, possibly relying on an 'anti-Peronist' front.

Argentina's government, under President Javier Milei, has introduced economic reforms, including currency devaluation and the abolition of subsidies for key services.

The government aims for a zero budget deficit, an ambitious goal amid the current economic situation.

The reforms include export duties and taxes that may affect the poor and vulnerable.

The government will abolish subsidies for low- and middle-income households by December 2026.

The authorities have introduced a tax amnesty and plan to privatize 41 state-owned companies, including YPF.

The government has not outlined a plan to address potential social and economic challenges, including increased poverty and inequality.

The opposition fears the reforms will worsen poverty and inequality, citing the 2001 crisis as an example.

President Milei says it will take at least a year and a half to solve inflation, requiring a period of economic decline beforehand.

The government is seeking to renegotiate its IMF debt agreement and explore alternative financing options, including a currency swap with China.

The country's 40% poverty rate may be addressed by the government's reforms, which aim to improve living standards.

Milei's reforms may lead to short-term economic pain, including increased poverty.

Dollarising an economy can take years to lower inflation rates.

Reducing government size and privatising services like healthcare and education will face opposition and transition difficulties.

The government acknowledges that economic reforms may increase poverty and inequality, but has not outlined a solution.

The government faces a challenge to meet its zero deficit pledge amid an expected 2.8% economic contraction.

The IMF expects Argentina's economy to contract by 2.8% this year.

The government has not announced measures to mitigate the reforms' impact on vulnerable populations.

Argentina has launched reforms to reduce its fiscal deficit and control inflation.

The reforms have sparked opposition, including a 12-hour strike by the General Confederation of Labour (CGT) in the capital.

The strike affected various services, including transportation and public services, and led to hundreds of flight cancellations.

The government says austerity measures are necessary due to years of overspending and huge debts, including a $44bn IMF deal.

The opposition claims the reforms will increase poverty and inequality, with some p

Argentina's President Javier Milei has introduced economic reforms, including currency devaluation and the abolition of subsidies for key services.

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

Devalued the peso
cut transport and energy subsidies

The government aims for a zero budget deficit, an ambitious goal amid the current economic situation.

What issue did Milei want to address without printing money?

Milei's economic plan includes dollarizing the economy and eliminating the Central Bank to combat hyper-inflation.

Title:

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

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

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

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

Taming inflation takes time

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

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

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

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

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

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

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

A climate sceptic?

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

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

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

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

Pragmatism and the Pope

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

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

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

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

No break with China and Brazil

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

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

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

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

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

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

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

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

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

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

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

Dictatorship denial

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

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

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

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

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

dollarizing the Argentinian currency
closing the central bank

What economic issue did Milei want to address?

The plan has sparked controversy and opposition from labor unions and leftist groups.

Title:

Content: Protests in Argentina, Reuters
Argentina...
The new president faces mass protests.
Argentine President Javier Mili faces a general strike and mass demonstrations on Wednesday to protest his ultra-liberal economic approach, a move that could pave the way for a broader and longer-term protest path.
Tens of thousands of demonstrators are expected to take part in the organized rally in the heart of Buenos Aires at the initiative of the General Confederation of Workers, which has 7 million members, and with the support of other unions, radical left movements and social organizations.
Demonstrations are planned in several other Argentine cities.
There have also been calls for solidarity gatherings in foreign capitals, notably Madrid, Paris and Brussels.
A month and a half after Milley took office, carrying with him a wide range of bills to remove economic controls, devalue the currency by 54%, and impose austerity measures from all sides.
This is an undeniable situation, ” said the General Secretary of the UGTT, Héctor Daire, who believes that this discontent “goes beyond ” the working class.
Such a strike would “show the world that the Argentine people do not stand silent, ” said Estela de Carlotto, a prominent figure in Argentine society and head of the so-called“ Grandmothers of Plaza Mayo, ” who called for joining the rally against a president who “wants to sell the whole country. ”
The strike shows the world that the Argentine people are not silent.
Estela de Carlotto, Argentine activist
Parliament Square in the capital is the focal point of this gathering, with MPs considering a wide range of reforms on a variety of topics with more than 600 bills referred to as the Omnibus Law, which the government is struggling to pass in the appropriate committees.
The government, for its part, considers that there is “no alternative ” to reforms and austerity policies to rectify a country with a heavy debt burden (a budget deficit equal to 2.9% of GDP in 2023, one point above the target) and to stabilize an economy stifled by inflation at 211% a year.
The organizers of the protest warn that the “out of control ” crowd will not only“ walk quietly on the pavement, ” but will remain “peaceful, ” according to Pablo Moyano, an official with the General Labor Union.
Security Minister Patricia Bulrich, for her part, is hinting at a new protocol that would allow federal forces to intervene when traffic is cut, threatening to “bill ” security measures to those responsible, as happened in demonstrations in late December.
World Bank warns of economic ‘ uncertainty ’ in Argentina
The government on Tuesday slammed unions as "on the wrong side of history" and launched the "fastest strike in history" announced barely 18 days after Milley took office.
She saw this move as “absolute nonsense ” at a time when reforms were following their“ democratic path ” in parliament.
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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.

Title:

Content: Argentine President Pledges Economic Reform in a Passionate Speech to Congress | Deutsche Welle Introduces Germany | DW | 02.03.2024
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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.
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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: Argentina's Senate in Deadlock: Economic Reform Bill Ignites Protests

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

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

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

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

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

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

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

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

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

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

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

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

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Content: International News

Who Is Javier Milei?

Alex Paszkowicz

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

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

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

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

The Peronist political movement has been pushed out of government

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

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

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

Milei used his platform […] to circulate conspiracy theories

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

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

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

“The reconstruction of Argentina begins” [Milei]

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

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

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

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

Aims to sever ties with China

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

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

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

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

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

Donald Trump believes Milei will “Make Argentina Great Again”

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

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

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

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

Alex Paszkowicz

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

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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

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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.

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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.

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Argentina presidential election: A runoff of economic ideals

Tobias Käufer
November 17, 2023

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

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

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

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

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

Milei's radical ideas for Argentina's economy

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

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

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

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

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

Massa's gentler economic reforms for Argentina

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

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

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

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

Argentina's untapped economic potential

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

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

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

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

This article was originally written in German.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

By ISABEL DEBRE
Associated Press

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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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.
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Content: Protesters clash with police in Argentina over austerity reforms

Argentina protests. Copyright Natacha Pisarenko/Copyright 2024 The AP. All rights reserved
By Euronews with AP
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Demonstrators are demanding Javier Milei's government provide more social benefits for impoverished families.

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Grassroots movements clashed with police on Wednesday during a demonstration in central Buenos Aires.

Hundreds gathered in front of government buildings, rallying against the austerity measures being ramped up by Javier Milei's government.

Police used water cannons to disperse the protesters, who tried to block one of the city's main avenues. Officials reported that at least eight people were detained during the operation.

The organisations behind the protests are demanding more social benefits for impoverished families.

A security protocol that came into force a few days after Milei took office enables federal forces to evict or disperse protesters who block traffic.

The law's critics maintain that it violates free assembly, association, and freedom of expression.

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Content: Argentina ’ s President Announces Staff Contract Cuts, Eases Regulations
As part of the Argentine president ’ s new plan to liberalize the ailing economy, an important step has been announced that the contracts of more than 5,000 employees hired this year before he took office will not be renewed, as part of the government ’ s efforts to implement comprehensive economic reforms.
President of Argentina
Since taking office on December 10, the right-wing liberal president has announced a plan to liberalize Argentina ’ s struggling economy by amending or repealing more than 300 current restrictions, regulations and laws, including rents and labor laws.
The authorities have made it clear that the contracts of other government employees hired before 2023 will be reviewed.
The goal of this 2023 deadline seems to be to target outgoing presidents in increasing payrolls in their final year.
Argentina faces major economic challenges, with inflation expected to reach around 200 percent by the end of the year.
In light of this, President Miley has pledged to reduce government regulation and payroll, and to allow the privatization of state-run industries to boost exports and investment.
The cuts have sparked protests in the country, but President Miley has reiterated his commitment to moving forward with his plan.
“Our goal is to start rebuilding our country, to restore the freedom and independence of individuals, and to start changing the many regulations that were a hindrance to economic growth and stopped it, ” he said.
The announced economic reform plan includes nearly 300 changes including the privatization of several state companies and the relaxation of protections offered to tenants, employees and shoppers.
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Content: Argentine president's reforms pass first parliamentary test
Cairo - Al Wasat Gate Saturday 03 February 2024, 09: 58 am
Argentina ’ s lower house of parliament has taken a first step toward approving the sweeping package of economic, social and political reforms put forward by President Javier Milli ’ s government, prompting angry protests from the opposition.
The bill received “general ” approval in principle on Friday in the House of Representatives, whose members will examine Melli ’ s bills in detail next week.
Ahead of the vote, Milley, 53, said on social media that lawmakers had "the opportunity to show the side of history" they wanted to be.
“History will judge them according to their work for the benefit of Argentines or for the continued impoverishment of the people. ”
Milley won a resounding victory in October's election, benefiting from anger over decades of economic crisis in the South American nation, where annual inflation exceeds 200 percent and poverty levels reach 40 percent.
Milley began his term by devaluing the peso by more than 50 percent, cutting subsidies for fuel and transport, halving the number of ministries and scrapping hundreds of measures to liberalize the economy.
His reform package touches on many areas of public and private life, from privatization to cultural issues, penal law, divorce and the status of football clubs.
Marathon debate and protests in front of parliament
The House of Representatives tentatively approved the package by 144 votes to 109 on the third day of a marathon debate accompanied by protests and confrontations in front of parliament.
The bill may be subject to amendments before being submitted to the Senate.
Lorena Viaverdi, a member of Milley ’ s far-right Progress of Freedom party, said: “We have two clear choices: either we become the world ’ s largest slum, or we continue on this path to prosperity and freedom. ”
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But opposition lawmaker Leandro Santoro cited the 2001 economic and social crisis as an example of the dangers of free market reforms, saying, “We Argentines know what happens when the economic model focuses on adjustment and deregulation. ”
On Friday, police again fired tear gas at crowds of protesters in front of parliament.
It came just over a week after tens of thousands of Argentines took to the streets in a major challenge to Melli ’ s budget-cutting policies.
In support of Melli ’ s reforms, the International Monetary Fund (IMF) agreed on Wednesday to disburse about $4.7 billion to Argentina.
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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: 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

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Argentina ’ s economic reform bill sent back to congressional committee for review
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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.
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Content: RAE Argentina to the world
RAE Mandarin Program January 12
Welcome to RAE Argentina to the world of Chinese program, I am the host Lina JI.
Our website: www.rae.com.ar, where you will find shortwave radio programming schedules, you can listen to the AM, FM and RAE signals of most Argentine national radio stations due to the daily streaming.
You are welcome to send the report to qslrae @ gmail.com, we would also like to receive the audio and video of you listening to RAE, so you will receive an electronic QSL card from Argentina to the world.
Songs: Beto Cuevas - Háblame / La Beriso - Como olvidarme / Alejandro Lerner - No hace falta que lo digas / Raly Barrionuevo, Lito Vitale - Pescador de hombres / Gardel - Aquellas Cartas
Argentina recibirá un desembolso de 4.700 millones de dólares del FMI
Argentina receives $4.7 billion from the International Monetary Fund
.....
A month after Millet took office, his government ’ s “comprehensive law ” is being debated.
......
FIFA severely sanctions Argentina
.....
Ecuadorian President Joaquim Noboa says Ecuador is "practically at war" with drug terrorists
....
The International Monetary Fund (IMF) reported that it had reached an agreement with the Argentine government on the seventh review within the framework of the Extended Facilitation Programme (SAF) agreement.
That would give Argentina a $4.7 billion allocation.
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The IMF document predicts that "with the implementation of policies and the rebuilding of credibility, a gradual process of deflation should begin."
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......
On January 10, Javier Milei completed a month-long presidential term in Argentina.
At the same time, Congress began to discuss a package of measures proposed by the president, known as the "Comprehensive Law", in which he proposed sweeping reforms in the economic and state spheres to reduce state participation.
Mile wants approval by the end of January to grant the government legislative powers in economic, financial, fiscal, security, defence, energy prices, health, administrative and social affairs by declaring a public emergency.
Meanwhile, on Thursday, the National Statistics and Census Bureau (INDEC) released its inflation rate since the Liberals took power.
One of its first measures was to devalue the Argentine peso by 54% against the dollar, which accelerated the rise in prices.
Millet ’ s government ’ s pursuit of economic reforms to deregulate the state and allow the market to exert its influence has sparked fierce public debate between supporters and opponents.
Critics include trade unions, which have announced that the first national strike against liberals will be held on January 24.
It will be the third social and political mobilisation the government has faced in a month in office.
.....
The FIFA Disciplinary Committee decided to sanction Argentina by allowing only 50% of the seats to be sold for the next match.
This is due to an incident that occurred during Argentina's match against Brazil in Rio during the 2026 World Cup qualifier between the United States and Canada.
The Argentine team must also pay 50,000 francs for the investment in the anti-discrimination programme and another 20,000 francs.
The FIFA disciplinary body's decision also includes economic sanctions against Brazil, Bolivia, Ecuador and Peru.
Chile will have to close 50 percent of its stadium for the next match due to discrimination by fans.
In addition, Chile must pay 80,000 francs.
Colombia will play its next home game with 25% of stadium seats closed and have been fined 30,000 francs for delays in the September match against Chile and discriminatory attitudes by fans.
Uruguay will have to close at least 25 percent of its stadiums for the next qualifier and pay 30,000 francs for delays against Colombia and Brazil and discrimination by fans against Argentina.
Brazil, meanwhile, was fined 5,000 francs for delays and break-ins in September against Bolivia, 15,000 francs for team misconduct (five individual penalties) against Uruguay in October, and 50,000 francs for failing to ensure order on and off the pitch against Argentina in November.
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The streets of Ecuador are experiencing unprecedented violence unleashed by criminal gangs and drug traffickers since January 8, killing at least 11 people and leaving nearly 140 police and prison staff in captivity.
In addition to this, there have been numerous armed attacks and around 70 detainees, a situation that President Daniel Noboa has defined as "fighting for peace in order to combat terrorist organizations."
As a result of the internal armed conflict, the country was in a state of emergency, and an executive order in Noboa provided for the identification of criminal groups as "terrorist organizations and militant non-State actors".
This means widespread mobilization of the armed forces, police and other security forces.
Noboa warned on Wednesday (01 / 10) that Ecuador's "moderate government is over" and acknowledged that we are going through "very difficult times."
For the president, who took office on November 23 last year, the wave of violence was "not an accident" but occurred "when the security plan began to be implemented."
“Judges and prosecutors who support these terrorist organizations will also be considered part of these organizations. ”
He said the warning was also aimed at members of the national police and armed forces who "obstruct any movement."
Offences launched by criminal organizations linked to the Mexican and Colombian cartels included an unusual break-in recorded live on public television channels on Tuesday's noon news program, with criminals threatening with explosives and long weapons.

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

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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.

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How will Milei's reforms impact workers?

Who has opposed Milei's proposed layoff order?

How will Milei's reforms impact workers?

Who has opposed Milei's proposed layoff order?

How will Milei's reforms impact workers?

Who has opposed Milei's proposed layoff order?

How will Milei's reforms impact workers?

Who has opposed Milei's proposed layoff order?

How will Milei's reforms impact workers?

Who has opposed Milei's proposed layoff order?

How will Milei's reforms impact workers?

Who has opposed Milei's proposed layoff order?

How will Milei's reforms impact workers?

Who has opposed Milei's proposed layoff order?

How will Milei's reforms impact workers?

Who has opposed Milei's proposed layoff order?

How will Milei's reforms impact workers?

Who has opposed Milei's proposed layoff order?

How will Milei's reforms impact workers?

Who has opposed Milei's proposed layoff order?

How will Milei's reforms impact workers?

Who has opposed Milei's proposed layoff order?

How will Milei's reforms impact workers?

Who has opposed Milei's proposed layoff order?

How will Milei's reforms impact workers?

Who has opposed Milei's proposed layoff order?

How will Milei's reforms impact workers?

Who has opposed Milei's proposed layoff order?

How will Milei's reforms impact workers?

Who has opposed Milei's proposed layoff order?

How will Milei's reforms impact workers?

Who has opposed Milei's proposed layoff order?

How will Milei's reforms impact workers?

Who has opposed Milei's proposed layoff order?

How will Milei's reforms impact workers?

Who has opposed Milei's proposed layoff order?

How will Milei's reforms impact workers?

Who has opposed Milei's proposed layoff order?

How will Milei's reforms impact workers?

Who has opposed Milei's proposed layoff order?

How will Milei's reforms impact workers?

Who has opposed Milei's proposed layoff order?

How will Milei's reforms impact workers?

Who has opposed Milei's proposed layoff order?

How will Milei's reforms impact workers?

Who has opposed Milei's proposed layoff order?

How will Milei's reforms impact workers?

Who has opposed Milei's proposed layoff order?

How will Milei's reforms impact workers?

Who has opposed Milei's proposed layoff order?

How will Milei's reforms impact workers?

Who has opposed Milei's proposed layoff order?

Milei proposes privatizing state entities and weakening labor protections.

Title:

Content: Argentine President Pledges Economic Reform in a Passionate Speech to Congress | Deutsche Welle Introduces Germany | DW | 02.03.2024
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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.

How will Milei's reforms impact workers?

The plan includes a 10-point 'social contract' to be agreed upon by May 25, which involves rediscussing the current tax distribution.

Title:

Content: Argentine President Pledges Economic Reform in a Passionate Speech to Congress | Deutsche Welle Introduces Germany | DW | 02.03.2024
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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.

Milei has issued decrees repealing or amending hundreds of laws to curb trade union power and deregulate the economy.

Title:

Content: Argentine President Pledges Economic Reform in a Passionate Speech to Congress | Deutsche Welle Introduces Germany | DW | 02.03.2024
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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.

How will Milei's reforms impact workers?

The executive branch may use decrees or regulatory amendments to implement economic reforms without congressional support.

Title:

Content: Argentine President Pledges Economic Reform in a Passionate Speech to Congress | Deutsche Welle Introduces Germany | DW | 02.03.2024
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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.

The government's economic reform approach may bring efficiency and growth, but also risks social welfare and stability.

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Argentina presidential election: A runoff of economic ideals

Tobias Käufer
November 17, 2023

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

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

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

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

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

Milei's radical ideas for Argentina's economy

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

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

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

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

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

Massa's gentler economic reforms for Argentina

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

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

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

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

Argentina's untapped economic potential

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

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

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

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

This article was originally written in German.

Milei's economic plan's success depends on balancing reform with social welfare and stability, while addressing labor unions, civil servants, and creditors' concerns.

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

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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.

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Who has opposed Milei's proposed layoff order?

Milei's policies may disproportionately affect low-income households.

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Content: Argentine President Pledges Economic Reform in a Passionate Speech to Congress | Deutsche Welle Introduces Germany | DW | 02.03.2024
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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.

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: 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: 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.

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

By Walter Bianchi

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

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

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

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

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

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

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

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

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

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

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

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

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

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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.
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Content: (Bloomberg) -- Argentina’s monthly inflation slowed for a second consecutive time as the impact of December’s large peso devaluation fades and President Javier Milei’s austerity measures push the economy into recession.

Consumer prices rose 13.2% in February from a month earlier, below economists’ expectations of a 15% gain, according to government data published Tuesday. On a yearly basis, prices surged 276.2%, the fastest pace since South America’s second-biggest economy exited hyperinflation in the early 1990s.

Central bank President Santiago Bausili announced a surprise rate cut to 80% from 100% late Monday, citing a “descending trajectory” in retail prices despite the “strong statistical drag” of high monthly inflation, alongside the steady rebuilding of international reserves. The inflation results reflect a lower pass-through than initially expected from December’s currency intervention, policymakers said.

Economy Minister Luis Caputo said Tuesday at an event in Buenos Aires he expects monthly inflation to slow below 10% by mid-2024. Separately, he noted that Milei still aims to achieve a “competition of currencies” where the US dollar would also be legal tender. Caputo added that the International Monetary Fund is open to discussing a new program to replace Argentina’s $44 billion program that would include fresh funds.

After taking office, Milei devalued the official peso exchange rate by 54%, instituted a 2% crawling monthly peg and lifted hundreds of price freezes. But the austerity measures also wiped out social security spending and inflation-adjusted wages, sharply curbing consumption and deepening the economic recession.

While inflation has been easing since its 25% monthly peak in December, progress is expected to slow as Milei continues to eliminate generous state subsidies that were artificially restraining energy bills and transport prices. March is expected to be a particularly harsh month as children return to school and unions negotiate salary increases, according to Gabriel Caamano, an economist at Buenos Aires-based Consultora Ledesma.

The central bank’s dovish policy move contrasts with IMF guidance from its most recent review of Argentina’s large program, where staff argued “the monetary policy stance would need to be tightened to support money demand and disinflation.” The fund projects a 2.8% contraction in Argentina’s economy this year, followed by 5% growth in 2025.

(Updates with comments from Economy Minister Caputo in fourth paragraph)

©2024 Bloomberg L.P.

Title:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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Content: Protesters clash with police in Argentina over austerity reforms

Argentina protests. Copyright Natacha Pisarenko/Copyright 2024 The AP. All rights reserved
By Euronews with AP
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Demonstrators are demanding Javier Milei's government provide more social benefits for impoverished families.

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Grassroots movements clashed with police on Wednesday during a demonstration in central Buenos Aires.

Hundreds gathered in front of government buildings, rallying against the austerity measures being ramped up by Javier Milei's government.

Police used water cannons to disperse the protesters, who tried to block one of the city's main avenues. Officials reported that at least eight people were detained during the operation.

The organisations behind the protests are demanding more social benefits for impoverished families.

A security protocol that came into force a few days after Milei took office enables federal forces to evict or disperse protesters who block traffic.

The law's critics maintain that it violates free assembly, association, and freedom of expression.

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Milei's 'mega-decree' labour reforms blocked by top court in Argentina

What might happen to Argentina after Milei's mega-decree?

Streets of Argentina erupt with anger against new Milei proposals

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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: 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

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

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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.

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What does Milei promote in terms of healthcare and education?

Individuals to pay for their own services

What does Milei promote in terms of healthcare and education?

Individuals to pay for their own services

What does Milei promote in terms of healthcare and education?

Individuals to pay for their own services

What does Milei promote in terms of healthcare and education?

Individuals to pay for their own services

What does Milei promote in terms of healthcare and education?

Individuals to pay for their own services

What does Milei promote in terms of healthcare and education?

Individuals to pay for their own services

What does Milei promote in terms of healthcare and education?

Individuals to pay for their own services

What does Milei promote in terms of healthcare and education?

Individuals to pay for their own services

What does Milei promote in terms of healthcare and education?

Individuals to pay for their own services

What does Milei promote in terms of healthcare and education?

Individuals to pay for their own services

What does Milei promote in terms of healthcare and education?

Individuals to pay for their own services

What does Milei promote in terms of healthcare and education?

Individuals to pay for their own services

What does Milei promote in terms of healthcare and education?

Individuals to pay for their own services

What does Milei promote in terms of healthcare and education?

Individuals to pay for their own services

What does Milei promote in terms of healthcare and education?

Individuals to pay for their own services

What does Milei promote in terms of healthcare and education?

Individuals to pay for their own services

What does Milei promote in terms of healthcare and education?

Individuals to pay for their own services

What does Milei promote in terms of healthcare and education?

Individuals to pay for their own services

What does Milei promote in terms of healthcare and education?

Individuals to pay for their own services

What does Milei promote in terms of healthcare and education?

Individuals to pay for their own services

What does Milei promote in terms of healthcare and education?

Individuals to pay for their own services

Small businesses reliant on government contracts or subsidies may be affected by Milei's policies.

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Content: Argentine President Pledges Economic Reform in a Passionate Speech to Congress | Deutsche Welle Introduces Germany | DW | 02.03.2024
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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.

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Content: Argentine government announces first quarterly surplus since 2008

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

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

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

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

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

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

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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)

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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

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

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

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

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

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

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

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

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

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

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

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

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

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

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Content: International News

Who Is Javier Milei?

Alex Paszkowicz

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

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

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

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

The Peronist political movement has been pushed out of government

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

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

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

Milei used his platform […] to circulate conspiracy theories

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

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

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

“The reconstruction of Argentina begins” [Milei]

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

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

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

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

Aims to sever ties with China

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

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

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

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

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

Donald Trump believes Milei will “Make Argentina Great Again”

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

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

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

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

Alex Paszkowicz

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

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Title:

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

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

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Argentinians see the light

By Ivo Vegter*

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

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

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

Happily, they did see the light.

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

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

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

Radical

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

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

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

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

Mainstream media

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

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

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

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

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

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

Authoritarians

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

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

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

Sour-grape-ish

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

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

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

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

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

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

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

Music to the ears

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

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

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

Pain and gain

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

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

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

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

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

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

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

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

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

Legislative opposition

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

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

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

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

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

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

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

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

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

Wait and see

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

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

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

Read also:

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

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

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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.

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

By Walter Bianchi

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

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

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

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

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

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

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

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

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

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

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

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

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

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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.
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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: (Bloomberg) -- Argentina’s monthly inflation slowed for a second consecutive time as the impact of December’s large peso devaluation fades and President Javier Milei’s austerity measures push the economy into recession.

Consumer prices rose 13.2% in February from a month earlier, below economists’ expectations of a 15% gain, according to government data published Tuesday. On a yearly basis, prices surged 276.2%, the fastest pace since South America’s second-biggest economy exited hyperinflation in the early 1990s.

Central bank President Santiago Bausili announced a surprise rate cut to 80% from 100% late Monday, citing a “descending trajectory” in retail prices despite the “strong statistical drag” of high monthly inflation, alongside the steady rebuilding of international reserves. The inflation results reflect a lower pass-through than initially expected from December’s currency intervention, policymakers said.

Economy Minister Luis Caputo said Tuesday at an event in Buenos Aires he expects monthly inflation to slow below 10% by mid-2024. Separately, he noted that Milei still aims to achieve a “competition of currencies” where the US dollar would also be legal tender. Caputo added that the International Monetary Fund is open to discussing a new program to replace Argentina’s $44 billion program that would include fresh funds.

After taking office, Milei devalued the official peso exchange rate by 54%, instituted a 2% crawling monthly peg and lifted hundreds of price freezes. But the austerity measures also wiped out social security spending and inflation-adjusted wages, sharply curbing consumption and deepening the economic recession.

While inflation has been easing since its 25% monthly peak in December, progress is expected to slow as Milei continues to eliminate generous state subsidies that were artificially restraining energy bills and transport prices. March is expected to be a particularly harsh month as children return to school and unions negotiate salary increases, according to Gabriel Caamano, an economist at Buenos Aires-based Consultora Ledesma.

The central bank’s dovish policy move contrasts with IMF guidance from its most recent review of Argentina’s large program, where staff argued “the monetary policy stance would need to be tightened to support money demand and disinflation.” The fund projects a 2.8% contraction in Argentina’s economy this year, followed by 5% growth in 2025.

(Updates with comments from Economy Minister Caputo in fourth paragraph)

©2024 Bloomberg L.P.

Title:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Title:

Content: Protesters clash with police in Argentina over austerity reforms

Argentina protests. Copyright Natacha Pisarenko/Copyright 2024 The AP. All rights reserved
By Euronews with AP
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Demonstrators are demanding Javier Milei's government provide more social benefits for impoverished families.

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Grassroots movements clashed with police on Wednesday during a demonstration in central Buenos Aires.

Hundreds gathered in front of government buildings, rallying against the austerity measures being ramped up by Javier Milei's government.

Police used water cannons to disperse the protesters, who tried to block one of the city's main avenues. Officials reported that at least eight people were detained during the operation.

The organisations behind the protests are demanding more social benefits for impoverished families.

A security protocol that came into force a few days after Milei took office enables federal forces to evict or disperse protesters who block traffic.

The law's critics maintain that it violates free assembly, association, and freedom of expression.

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

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Content: Argentine president's reforms pass first parliamentary test
Cairo - Al Wasat Gate Saturday 03 February 2024, 09: 58 am
Argentina ’ s lower house of parliament has taken a first step toward approving the sweeping package of economic, social and political reforms put forward by President Javier Milli ’ s government, prompting angry protests from the opposition.
The bill received “general ” approval in principle on Friday in the House of Representatives, whose members will examine Melli ’ s bills in detail next week.
Ahead of the vote, Milley, 53, said on social media that lawmakers had "the opportunity to show the side of history" they wanted to be.
“History will judge them according to their work for the benefit of Argentines or for the continued impoverishment of the people. ”
Milley won a resounding victory in October's election, benefiting from anger over decades of economic crisis in the South American nation, where annual inflation exceeds 200 percent and poverty levels reach 40 percent.
Milley began his term by devaluing the peso by more than 50 percent, cutting subsidies for fuel and transport, halving the number of ministries and scrapping hundreds of measures to liberalize the economy.
His reform package touches on many areas of public and private life, from privatization to cultural issues, penal law, divorce and the status of football clubs.
Marathon debate and protests in front of parliament
The House of Representatives tentatively approved the package by 144 votes to 109 on the third day of a marathon debate accompanied by protests and confrontations in front of parliament.
The bill may be subject to amendments before being submitted to the Senate.
Lorena Viaverdi, a member of Milley ’ s far-right Progress of Freedom party, said: “We have two clear choices: either we become the world ’ s largest slum, or we continue on this path to prosperity and freedom. ”
Argentine government withdraws tax reforms from broad bill
But opposition lawmaker Leandro Santoro cited the 2001 economic and social crisis as an example of the dangers of free market reforms, saying, “We Argentines know what happens when the economic model focuses on adjustment and deregulation. ”
On Friday, police again fired tear gas at crowds of protesters in front of parliament.
It came just over a week after tens of thousands of Argentines took to the streets in a major challenge to Melli ’ s budget-cutting policies.
In support of Melli ’ s reforms, the International Monetary Fund (IMF) agreed on Wednesday to disburse about $4.7 billion to Argentina.
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Argentina ’ s economic reform bill sent back to congressional committee for review
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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.
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Content: RAE Argentina to the world
RAE Mandarin Program January 12
Welcome to RAE Argentina to the world of Chinese program, I am the host Lina JI.
Our website: www.rae.com.ar, where you will find shortwave radio programming schedules, you can listen to the AM, FM and RAE signals of most Argentine national radio stations due to the daily streaming.
You are welcome to send the report to qslrae @ gmail.com, we would also like to receive the audio and video of you listening to RAE, so you will receive an electronic QSL card from Argentina to the world.
Songs: Beto Cuevas - Háblame / La Beriso - Como olvidarme / Alejandro Lerner - No hace falta que lo digas / Raly Barrionuevo, Lito Vitale - Pescador de hombres / Gardel - Aquellas Cartas
Argentina recibirá un desembolso de 4.700 millones de dólares del FMI
Argentina receives $4.7 billion from the International Monetary Fund
.....
A month after Millet took office, his government ’ s “comprehensive law ” is being debated.
......
FIFA severely sanctions Argentina
.....
Ecuadorian President Joaquim Noboa says Ecuador is "practically at war" with drug terrorists
....
The International Monetary Fund (IMF) reported that it had reached an agreement with the Argentine government on the seventh review within the framework of the Extended Facilitation Programme (SAF) agreement.
That would give Argentina a $4.7 billion allocation.
Economy Minister Luis Caputo detailed at a news conference on Jan. 11 that the allocation would be used to "pay for the corresponding capital maturities in December, January and April."
The IMF document predicts that "with the implementation of policies and the rebuilding of credibility, a gradual process of deflation should begin."
"This is accompanied by further strengthening of reserves and an eventual recovery in production, demand and real wages," the report detailed.
The reserve accumulation target for 2024 is $10 billion.
......
On January 10, Javier Milei completed a month-long presidential term in Argentina.
At the same time, Congress began to discuss a package of measures proposed by the president, known as the "Comprehensive Law", in which he proposed sweeping reforms in the economic and state spheres to reduce state participation.
Mile wants approval by the end of January to grant the government legislative powers in economic, financial, fiscal, security, defence, energy prices, health, administrative and social affairs by declaring a public emergency.
Meanwhile, on Thursday, the National Statistics and Census Bureau (INDEC) released its inflation rate since the Liberals took power.
One of its first measures was to devalue the Argentine peso by 54% against the dollar, which accelerated the rise in prices.
Millet ’ s government ’ s pursuit of economic reforms to deregulate the state and allow the market to exert its influence has sparked fierce public debate between supporters and opponents.
Critics include trade unions, which have announced that the first national strike against liberals will be held on January 24.
It will be the third social and political mobilisation the government has faced in a month in office.
.....
The FIFA Disciplinary Committee decided to sanction Argentina by allowing only 50% of the seats to be sold for the next match.
This is due to an incident that occurred during Argentina's match against Brazil in Rio during the 2026 World Cup qualifier between the United States and Canada.
The Argentine team must also pay 50,000 francs for the investment in the anti-discrimination programme and another 20,000 francs.
The FIFA disciplinary body's decision also includes economic sanctions against Brazil, Bolivia, Ecuador and Peru.
Chile will have to close 50 percent of its stadium for the next match due to discrimination by fans.
In addition, Chile must pay 80,000 francs.
Colombia will play its next home game with 25% of stadium seats closed and have been fined 30,000 francs for delays in the September match against Chile and discriminatory attitudes by fans.
Uruguay will have to close at least 25 percent of its stadiums for the next qualifier and pay 30,000 francs for delays against Colombia and Brazil and discrimination by fans against Argentina.
Brazil, meanwhile, was fined 5,000 francs for delays and break-ins in September against Bolivia, 15,000 francs for team misconduct (five individual penalties) against Uruguay in October, and 50,000 francs for failing to ensure order on and off the pitch against Argentina in November.
....
The streets of Ecuador are experiencing unprecedented violence unleashed by criminal gangs and drug traffickers since January 8, killing at least 11 people and leaving nearly 140 police and prison staff in captivity.
In addition to this, there have been numerous armed attacks and around 70 detainees, a situation that President Daniel Noboa has defined as "fighting for peace in order to combat terrorist organizations."
As a result of the internal armed conflict, the country was in a state of emergency, and an executive order in Noboa provided for the identification of criminal groups as "terrorist organizations and militant non-State actors".
This means widespread mobilization of the armed forces, police and other security forces.
Noboa warned on Wednesday (01 / 10) that Ecuador's "moderate government is over" and acknowledged that we are going through "very difficult times."
For the president, who took office on November 23 last year, the wave of violence was "not an accident" but occurred "when the security plan began to be implemented."
“Judges and prosecutors who support these terrorist organizations will also be considered part of these organizations. ”
He said the warning was also aimed at members of the national police and armed forces who "obstruct any movement."
Offences launched by criminal organizations linked to the Mexican and Colombian cartels included an unusual break-in recorded live on public television channels on Tuesday's noon news program, with criminals threatening with explosives and long weapons.

Title:

Content: No, Milei Is Not A Fascist – OpEd

By

By Benjamin Williams

The electoral victory of Javier Milei in Argentina was a pleasant surprise to libertarians internationally. For the first time ever, an open anarchocapitalist was elected president of a sovereign nation. Milei’s fame isn’t limited to libertarian circles, though. Right-wingers all over the world have praised him for his battle against corruption and economic ruin. He was even given a spot headlining for former president Donald Trump at the Conservative Political Action Conference 2024, one of the biggest conservative events in the United States. Currently, he is one of the most popular heads of state in the world. Quite a lot of impressive feats for someone of a heterodox philosophy.

Milei is an Austrian economist. He taught economics for over twenty years and became quite the celebrity while doing it. Argentine TV stations would bring him on to debate leftists, and these station audiences grew very fond of his intellect and crass insults toward his opponents. His debate style is a reminder of Murray Rothbard’s hilarious quote: “I’ve always been in favor of refuting the doctrine and then attacking the person; that’s not an ad hominem fallacy.”

Milei’s competence as an economist has been very apparent in his presidency. Under his guidance, Argentina has seen “two consecutive months of financial surplus for the first time since early 2011,” quite an impressive feat. Its month-over-month inflation rate went from 25.5 percent in December to 20.6 percent in January, 13.2 percent in February, and 11 percent in March. Argentina is healing. Slowly, but surely.

The Attacks on Milei

Although Argentina is seeing improvements and Milei is doing an impressive job, he is the target of near-constant attacks from leftists all over the world. Some of the most common weapons being used are accusations of “far-right” politics and “fascism.” A writer at Foreign Policy called him a “wannabe dictator,” while the World Socialist Web Site said his speech at Davos, during which he condemned fascism, was a “fascist rant.” One viral post on Elon Musk’s X read:

Javier Milei continues his fascist rampage in Argentina.

He has authorised the Privatising of all remaining State owned industries (thats his donors cashing in).

He has also authorised the sale of all Social Housing and removed all rent controls

It is going exactly as expected

It is almost a rite of passage for an Austrian economist to be labeled Far Right, fascist, a Nazi, racist, or homophobic. God knows Rothbard and Hans-Hermann Hoppe have been called those things thousands of times over. Leftists have even gone so far as to call Ludwig von Mises, a Jew who fled the Nazis, a supporter of fascism. Quite absurd. If any of these critics bothered to read into what actual fascists believed, they’d realize that these Austrian economists are the opposites of fascists in almost every way.

Milei versus Mussolini

The dictator Benito Mussolini and his close comrade Giovanni Gentile were indisputably fascists. They invented fascism, wrote fascist literature, and called themselves fascists. So it stands to reason that if you want to see if Javier Milei is a fascist, you’d compare him to these fascists. The critics never make these sorts of comparisons because they’re aware it would expose their ridiculous accusations for what they are: ahistorical and ignorant.

Mussolini viewed the state as almost something to be worshipped, with his works riddled with references to its greatness and importance. He summarized his view with the mantra, “Everything within the state, nothing outside the state, nothing against the state.” In stark contrast, Milei’s speeches, debates, and rants are filled with insults and criticisms directed at the state. One of his most famous quotes, “wipe my ass with the state,” encapsulates this disdain. Milei does not hold the state on a pedestal like Mussolini did.

Mussolini believed that capitalism was deeply flawed and needed to be abolished. In “The Political and Social Doctrine of Fascism,” he states that the state was “the force which alone can provide a solution to the dramatic contradictions of capitalism” and that fascism would replace capitalism with “a system of syndicalism.” On the other hand, Milei holds a contrasting view. He frequently praises capitalism as morally and economically superior. In his World Economic Forum speech—dubbed a ‘fascist rant’ by socialists—he declared that people should resist the state, asserting, “The state is not the solution. The state is the problem itself.”

Milei’s policies are certainly not fascist either. Mussolini’s dictatorship supported the socialization of industry, not privatization. His dictatorship mandated union membership, harshly regulated industries, and socialized over eighty firms. In 1934, he bragged that “three quarters of the Italian industrial and agricultural economy” were controlled by the state. Mussolini poured investments into social housing. In Rome alone, ninety-seven thousand apartments were built from 1924 to 1930. The fascist government built 147 brand-new towns from 1922 to 1944. In April 1934, he declared a 12 percent reduction in rents and implemented rent control that wasn’t repealed until 1978. The X post by one of Milei’s critics demonstrates that Milei’s policies are exactly the opposite of this.

The Defeat of Fascism

Milei is no fascist; if anything, he defeated fascists. Milei’s opponent in the previous election was an open Peronist. The Peronists follow the ideas of Juan Peron, who is commonly identified as a fascist or very close to one. Peron praised Mussolini and credited him for some of his philosophy as well as helped Nazi war criminals escape Europe, and his economic policies were much closer to Mussolini’s than Milei’s. Milei’s victory marks a new beginning for Argentina, a beginning where fascism is no longer the dominating ideology.

  • About the author: Benjamin Williams is a fellow with FEE’s Henry Hazlitt Project for Educational Journalism. He has produced videos and written content for many libertarian organizations such as the Mises Institute and Students For Liberty. Under the alias PraxBen on TikTok, he has amassed over 200,000 followers and 100 million views promoting sound economics and libertarianism to younger audiences. He also heads up the TikTok and Twitter accounts for FEE.
  • Source: This article was published by the Mises Institute

MISES

The Mises Institute, founded in 1982, teaches the scholarship of Austrian economics, freedom, and peace. The liberal intellectual tradition of Ludwig von Mises (1881-1973) and Murray N. Rothbard (1926-1995) guides us. Accordingly, the Mises Institute seeks a profound and radical shift in the intellectual climate: away from statism and toward a private property order. The Mises Institute encourages critical historical research, and stands against political correctness.

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

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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.

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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

Milei's policies may affect indigenous communities through economic changes and environmental implications, given his views on climate change.

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

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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
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- 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
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- Maulen Ashimbayev: "The Senate is ready for legislative support of the reforms proposed in the Address"
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Argentina's government, led by President Javier Milei, faces mass protests and a general strike over its ultra-liberal economic policies.

Title:

Content: Protests in Argentina, Reuters
Argentina...
The new president faces mass protests.
Argentine President Javier Mili faces a general strike and mass demonstrations on Wednesday to protest his ultra-liberal economic approach, a move that could pave the way for a broader and longer-term protest path.
Tens of thousands of demonstrators are expected to take part in the organized rally in the heart of Buenos Aires at the initiative of the General Confederation of Workers, which has 7 million members, and with the support of other unions, radical left movements and social organizations.
Demonstrations are planned in several other Argentine cities.
There have also been calls for solidarity gatherings in foreign capitals, notably Madrid, Paris and Brussels.
A month and a half after Milley took office, carrying with him a wide range of bills to remove economic controls, devalue the currency by 54%, and impose austerity measures from all sides.
This is an undeniable situation, ” said the General Secretary of the UGTT, Héctor Daire, who believes that this discontent “goes beyond ” the working class.
Such a strike would “show the world that the Argentine people do not stand silent, ” said Estela de Carlotto, a prominent figure in Argentine society and head of the so-called“ Grandmothers of Plaza Mayo, ” who called for joining the rally against a president who “wants to sell the whole country. ”
The strike shows the world that the Argentine people are not silent.
Estela de Carlotto, Argentine activist
Parliament Square in the capital is the focal point of this gathering, with MPs considering a wide range of reforms on a variety of topics with more than 600 bills referred to as the Omnibus Law, which the government is struggling to pass in the appropriate committees.
The government, for its part, considers that there is “no alternative ” to reforms and austerity policies to rectify a country with a heavy debt burden (a budget deficit equal to 2.9% of GDP in 2023, one point above the target) and to stabilize an economy stifled by inflation at 211% a year.
The organizers of the protest warn that the “out of control ” crowd will not only“ walk quietly on the pavement, ” but will remain “peaceful, ” according to Pablo Moyano, an official with the General Labor Union.
Security Minister Patricia Bulrich, for her part, is hinting at a new protocol that would allow federal forces to intervene when traffic is cut, threatening to “bill ” security measures to those responsible, as happened in demonstrations in late December.
World Bank warns of economic ‘ uncertainty ’ in Argentina
The government on Tuesday slammed unions as "on the wrong side of history" and launched the "fastest strike in history" announced barely 18 days after Milley took office.
She saw this move as “absolute nonsense ” at a time when reforms were following their“ democratic path ” in parliament.
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No stories found.
Erm News
www.eremnews.com

How will Milei's reforms impact workers?

suspended 366 decrees to ease economic controls and reduce spending.

The government sees reforms and austerity as necessary to address the country's debt and stabilize the economy, which had a 2.9% budget deficit in 2023.

Title:

Content: Protests in Argentina, Reuters
Argentina...
The new president faces mass protests.
Argentine President Javier Mili faces a general strike and mass demonstrations on Wednesday to protest his ultra-liberal economic approach, a move that could pave the way for a broader and longer-term protest path.
Tens of thousands of demonstrators are expected to take part in the organized rally in the heart of Buenos Aires at the initiative of the General Confederation of Workers, which has 7 million members, and with the support of other unions, radical left movements and social organizations.
Demonstrations are planned in several other Argentine cities.
There have also been calls for solidarity gatherings in foreign capitals, notably Madrid, Paris and Brussels.
A month and a half after Milley took office, carrying with him a wide range of bills to remove economic controls, devalue the currency by 54%, and impose austerity measures from all sides.
This is an undeniable situation, ” said the General Secretary of the UGTT, Héctor Daire, who believes that this discontent “goes beyond ” the working class.
Such a strike would “show the world that the Argentine people do not stand silent, ” said Estela de Carlotto, a prominent figure in Argentine society and head of the so-called“ Grandmothers of Plaza Mayo, ” who called for joining the rally against a president who “wants to sell the whole country. ”
The strike shows the world that the Argentine people are not silent.
Estela de Carlotto, Argentine activist
Parliament Square in the capital is the focal point of this gathering, with MPs considering a wide range of reforms on a variety of topics with more than 600 bills referred to as the Omnibus Law, which the government is struggling to pass in the appropriate committees.
The government, for its part, considers that there is “no alternative ” to reforms and austerity policies to rectify a country with a heavy debt burden (a budget deficit equal to 2.9% of GDP in 2023, one point above the target) and to stabilize an economy stifled by inflation at 211% a year.
The organizers of the protest warn that the “out of control ” crowd will not only“ walk quietly on the pavement, ” but will remain “peaceful, ” according to Pablo Moyano, an official with the General Labor Union.
Security Minister Patricia Bulrich, for her part, is hinting at a new protocol that would allow federal forces to intervene when traffic is cut, threatening to “bill ” security measures to those responsible, as happened in demonstrations in late December.
World Bank warns of economic ‘ uncertainty ’ in Argentina
The government on Tuesday slammed unions as "on the wrong side of history" and launched the "fastest strike in history" announced barely 18 days after Milley took office.
She saw this move as “absolute nonsense ” at a time when reforms were following their“ democratic path ” in parliament.
Most Read
No stories found.
Erm News
www.eremnews.com

What issue did Milei want to address without printing money?

The country's economy is stifled by 211% annual inflation, while the government struggles to pass the 600-bill Omnibus Law.

Title:

Content: Protests in Argentina, Reuters
Argentina...
The new president faces mass protests.
Argentine President Javier Mili faces a general strike and mass demonstrations on Wednesday to protest his ultra-liberal economic approach, a move that could pave the way for a broader and longer-term protest path.
Tens of thousands of demonstrators are expected to take part in the organized rally in the heart of Buenos Aires at the initiative of the General Confederation of Workers, which has 7 million members, and with the support of other unions, radical left movements and social organizations.
Demonstrations are planned in several other Argentine cities.
There have also been calls for solidarity gatherings in foreign capitals, notably Madrid, Paris and Brussels.
A month and a half after Milley took office, carrying with him a wide range of bills to remove economic controls, devalue the currency by 54%, and impose austerity measures from all sides.
This is an undeniable situation, ” said the General Secretary of the UGTT, Héctor Daire, who believes that this discontent “goes beyond ” the working class.
Such a strike would “show the world that the Argentine people do not stand silent, ” said Estela de Carlotto, a prominent figure in Argentine society and head of the so-called“ Grandmothers of Plaza Mayo, ” who called for joining the rally against a president who “wants to sell the whole country. ”
The strike shows the world that the Argentine people are not silent.
Estela de Carlotto, Argentine activist
Parliament Square in the capital is the focal point of this gathering, with MPs considering a wide range of reforms on a variety of topics with more than 600 bills referred to as the Omnibus Law, which the government is struggling to pass in the appropriate committees.
The government, for its part, considers that there is “no alternative ” to reforms and austerity policies to rectify a country with a heavy debt burden (a budget deficit equal to 2.9% of GDP in 2023, one point above the target) and to stabilize an economy stifled by inflation at 211% a year.
The organizers of the protest warn that the “out of control ” crowd will not only“ walk quietly on the pavement, ” but will remain “peaceful, ” according to Pablo Moyano, an official with the General Labor Union.
Security Minister Patricia Bulrich, for her part, is hinting at a new protocol that would allow federal forces to intervene when traffic is cut, threatening to “bill ” security measures to those responsible, as happened in demonstrations in late December.
World Bank warns of economic ‘ uncertainty ’ in Argentina
The government on Tuesday slammed unions as "on the wrong side of history" and launched the "fastest strike in history" announced barely 18 days after Milley took office.
She saw this move as “absolute nonsense ” at a time when reforms were following their“ democratic path ” in parliament.
Most Read
No stories found.
Erm News
www.eremnews.com

As of 2024, what are the statistics regarding poverty?

annual inflation rate of 211% is highest in 32 years

What economic issue did Milei want to address?

The Argentine Senate is debating President Javier Milei's economic reform bill, which has sparked protests outside Congress.

Title:

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

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

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

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

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

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

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

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

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

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

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

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

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

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The bill has passed the lower house, but faces uncertain passage in the Senate due to likely opposition from the Peronist bloc.

Title:

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

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

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

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

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

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

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

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

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

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

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

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

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

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President Milei's government lacks a majority in both chambers, forcing it to bargain for allies to pass the bill.

Title:

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

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

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

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

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

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

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

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

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

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

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

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

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

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The government removed the fiscal section, including tax hikes and pension reforms, to ensure the bill's passage 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)

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Argentina's parliament has narrowly passed President Javier Milei's economic reform plan with Vice President Victoria Villarruel's decisive vote.

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.
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The reforms, including pension cuts and diluted labor rights, have sparked concerns they will hurt millions of Argentines.

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

How will Milei's reforms impact workers?

The government's emergency decree introducing sweeping reforms has sparked opposition and protests.

The government has introduced an 'anti-picket' protocol to control protests, which critics say violates the right to protest.

Economy Minister Luis 'Toto' Caputo has announced tax hikes contradicting President Milei's campaign promises.

Argentina's government, led by President Javier Milei, is implementing austerity reforms, sparking protests over social benefits for impoverished families.

Title:

Content: Protesters clash with police in Argentina over austerity reforms

Argentina protests. Copyright Natacha Pisarenko/Copyright 2024 The AP. All rights reserved
By Euronews with AP
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Copy/paste the article video embed link below:Copied

Demonstrators are demanding Javier Milei's government provide more social benefits for impoverished families.

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Grassroots movements clashed with police on Wednesday during a demonstration in central Buenos Aires.

Hundreds gathered in front of government buildings, rallying against the austerity measures being ramped up by Javier Milei's government.

Police used water cannons to disperse the protesters, who tried to block one of the city's main avenues. Officials reported that at least eight people were detained during the operation.

The organisations behind the protests are demanding more social benefits for impoverished families.

A security protocol that came into force a few days after Milei took office enables federal forces to evict or disperse protesters who block traffic.

The law's critics maintain that it violates free assembly, association, and freedom of expression.

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Milei's 'mega-decree' labour reforms blocked by top court in Argentina

What might happen to Argentina after Milei's mega-decree?

Streets of Argentina erupt with anger against new Milei proposals

Who has opposed Milei's proposed layoff order?

Austerity measures are being met with opposition and protests in central Buenos Aires.

Title:

Content: Protesters clash with police in Argentina over austerity reforms

Argentina protests. Copyright Natacha Pisarenko/Copyright 2024 The AP. All rights reserved
By Euronews with AP
Share this articleComments
Share this article
Copy/paste the article video embed link below:Copied

Demonstrators are demanding Javier Milei's government provide more social benefits for impoverished families.

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Grassroots movements clashed with police on Wednesday during a demonstration in central Buenos Aires.

Hundreds gathered in front of government buildings, rallying against the austerity measures being ramped up by Javier Milei's government.

Police used water cannons to disperse the protesters, who tried to block one of the city's main avenues. Officials reported that at least eight people were detained during the operation.

The organisations behind the protests are demanding more social benefits for impoverished families.

A security protocol that came into force a few days after Milei took office enables federal forces to evict or disperse protesters who block traffic.

The law's critics maintain that it violates free assembly, association, and freedom of expression.

Share this articleComments

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Milei's 'mega-decree' labour reforms blocked by top court in Argentina

What might happen to Argentina after Milei's mega-decree?

Streets of Argentina erupt with anger against new Milei proposals

Argentina's top court has blocked some of Milei's labour reforms.

Title:

Content: Protesters clash with police in Argentina over austerity reforms

Argentina protests. Copyright Natacha Pisarenko/Copyright 2024 The AP. All rights reserved
By Euronews with AP
Share this articleComments
Share this article
Copy/paste the article video embed link below:Copied

Demonstrators are demanding Javier Milei's government provide more social benefits for impoverished families.

ADVERTISEMENT

Grassroots movements clashed with police on Wednesday during a demonstration in central Buenos Aires.

Hundreds gathered in front of government buildings, rallying against the austerity measures being ramped up by Javier Milei's government.

Police used water cannons to disperse the protesters, who tried to block one of the city's main avenues. Officials reported that at least eight people were detained during the operation.

The organisations behind the protests are demanding more social benefits for impoverished families.

A security protocol that came into force a few days after Milei took office enables federal forces to evict or disperse protesters who block traffic.

The law's critics maintain that it violates free assembly, association, and freedom of expression.

Share this articleComments

You might also like

Milei's 'mega-decree' labour reforms blocked by top court in Argentina

What might happen to Argentina after Milei's mega-decree?

Streets of Argentina erupt with anger against new Milei proposals

The government's proposed package of economic, social, and political reforms has passed its first parliamentary test.

Title:

Content: Argentine president's reforms pass first parliamentary test
Cairo - Al Wasat Gate Saturday 03 February 2024, 09: 58 am
Argentina ’ s lower house of parliament has taken a first step toward approving the sweeping package of economic, social and political reforms put forward by President Javier Milli ’ s government, prompting angry protests from the opposition.
The bill received “general ” approval in principle on Friday in the House of Representatives, whose members will examine Melli ’ s bills in detail next week.
Ahead of the vote, Milley, 53, said on social media that lawmakers had "the opportunity to show the side of history" they wanted to be.
“History will judge them according to their work for the benefit of Argentines or for the continued impoverishment of the people. ”
Milley won a resounding victory in October's election, benefiting from anger over decades of economic crisis in the South American nation, where annual inflation exceeds 200 percent and poverty levels reach 40 percent.
Milley began his term by devaluing the peso by more than 50 percent, cutting subsidies for fuel and transport, halving the number of ministries and scrapping hundreds of measures to liberalize the economy.
His reform package touches on many areas of public and private life, from privatization to cultural issues, penal law, divorce and the status of football clubs.
Marathon debate and protests in front of parliament
The House of Representatives tentatively approved the package by 144 votes to 109 on the third day of a marathon debate accompanied by protests and confrontations in front of parliament.
The bill may be subject to amendments before being submitted to the Senate.
Lorena Viaverdi, a member of Milley ’ s far-right Progress of Freedom party, said: “We have two clear choices: either we become the world ’ s largest slum, or we continue on this path to prosperity and freedom. ”
Argentine government withdraws tax reforms from broad bill
But opposition lawmaker Leandro Santoro cited the 2001 economic and social crisis as an example of the dangers of free market reforms, saying, “We Argentines know what happens when the economic model focuses on adjustment and deregulation. ”
On Friday, police again fired tear gas at crowds of protesters in front of parliament.
It came just over a week after tens of thousands of Argentines took to the streets in a major challenge to Melli ’ s budget-cutting policies.
In support of Melli ’ s reforms, the International Monetary Fund (IMF) agreed on Wednesday to disburse about $4.7 billion to Argentina.
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Argentina's reforms target its economic crisis, with inflation over 200% and poverty at 40%.

Title:

Content: Argentine president's reforms pass first parliamentary test
Cairo - Al Wasat Gate Saturday 03 February 2024, 09: 58 am
Argentina ’ s lower house of parliament has taken a first step toward approving the sweeping package of economic, social and political reforms put forward by President Javier Milli ’ s government, prompting angry protests from the opposition.
The bill received “general ” approval in principle on Friday in the House of Representatives, whose members will examine Melli ’ s bills in detail next week.
Ahead of the vote, Milley, 53, said on social media that lawmakers had "the opportunity to show the side of history" they wanted to be.
“History will judge them according to their work for the benefit of Argentines or for the continued impoverishment of the people. ”
Milley won a resounding victory in October's election, benefiting from anger over decades of economic crisis in the South American nation, where annual inflation exceeds 200 percent and poverty levels reach 40 percent.
Milley began his term by devaluing the peso by more than 50 percent, cutting subsidies for fuel and transport, halving the number of ministries and scrapping hundreds of measures to liberalize the economy.
His reform package touches on many areas of public and private life, from privatization to cultural issues, penal law, divorce and the status of football clubs.
Marathon debate and protests in front of parliament
The House of Representatives tentatively approved the package by 144 votes to 109 on the third day of a marathon debate accompanied by protests and confrontations in front of parliament.
The bill may be subject to amendments before being submitted to the Senate.
Lorena Viaverdi, a member of Milley ’ s far-right Progress of Freedom party, said: “We have two clear choices: either we become the world ’ s largest slum, or we continue on this path to prosperity and freedom. ”
Argentine government withdraws tax reforms from broad bill
But opposition lawmaker Leandro Santoro cited the 2001 economic and social crisis as an example of the dangers of free market reforms, saying, “We Argentines know what happens when the economic model focuses on adjustment and deregulation. ”
On Friday, police again fired tear gas at crowds of protesters in front of parliament.
It came just over a week after tens of thousands of Argentines took to the streets in a major challenge to Melli ’ s budget-cutting policies.
In support of Melli ’ s reforms, the International Monetary Fund (IMF) agreed on Wednesday to disburse about $4.7 billion to Argentina.
More from the middle gate.
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Central Bank of Egypt raises interest rates by 2%
Oil prices rise after OPEC + decision
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The labor market is improving more than expected in the United States.
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As of 2024, what are the statistics regarding poverty?

What economic issue did Milei want to address?

President Milei has liberalized the economy by devaluing the peso, cutting fuel and transport subsidies, and reducing ministries by half.

Title:

Content: Argentine president's reforms pass first parliamentary test
Cairo - Al Wasat Gate Saturday 03 February 2024, 09: 58 am
Argentina ’ s lower house of parliament has taken a first step toward approving the sweeping package of economic, social and political reforms put forward by President Javier Milli ’ s government, prompting angry protests from the opposition.
The bill received “general ” approval in principle on Friday in the House of Representatives, whose members will examine Melli ’ s bills in detail next week.
Ahead of the vote, Milley, 53, said on social media that lawmakers had "the opportunity to show the side of history" they wanted to be.
“History will judge them according to their work for the benefit of Argentines or for the continued impoverishment of the people. ”
Milley won a resounding victory in October's election, benefiting from anger over decades of economic crisis in the South American nation, where annual inflation exceeds 200 percent and poverty levels reach 40 percent.
Milley began his term by devaluing the peso by more than 50 percent, cutting subsidies for fuel and transport, halving the number of ministries and scrapping hundreds of measures to liberalize the economy.
His reform package touches on many areas of public and private life, from privatization to cultural issues, penal law, divorce and the status of football clubs.
Marathon debate and protests in front of parliament
The House of Representatives tentatively approved the package by 144 votes to 109 on the third day of a marathon debate accompanied by protests and confrontations in front of parliament.
The bill may be subject to amendments before being submitted to the Senate.
Lorena Viaverdi, a member of Milley ’ s far-right Progress of Freedom party, said: “We have two clear choices: either we become the world ’ s largest slum, or we continue on this path to prosperity and freedom. ”
Argentine government withdraws tax reforms from broad bill
But opposition lawmaker Leandro Santoro cited the 2001 economic and social crisis as an example of the dangers of free market reforms, saying, “We Argentines know what happens when the economic model focuses on adjustment and deregulation. ”
On Friday, police again fired tear gas at crowds of protesters in front of parliament.
It came just over a week after tens of thousands of Argentines took to the streets in a major challenge to Melli ’ s budget-cutting policies.
In support of Melli ’ s reforms, the International Monetary Fund (IMF) agreed on Wednesday to disburse about $4.7 billion to Argentina.
More from the middle gate.
Related Titles
Central Bank of Egypt raises interest rates by 2%
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The labor market is improving more than expected in the United States.
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Devalued the peso
cut transport and energy subsidies

The reform package covers various areas, including privatization, cultural issues, penal law, divorce, and football clubs.

Title:

Content: Argentine president's reforms pass first parliamentary test
Cairo - Al Wasat Gate Saturday 03 February 2024, 09: 58 am
Argentina ’ s lower house of parliament has taken a first step toward approving the sweeping package of economic, social and political reforms put forward by President Javier Milli ’ s government, prompting angry protests from the opposition.
The bill received “general ” approval in principle on Friday in the House of Representatives, whose members will examine Melli ’ s bills in detail next week.
Ahead of the vote, Milley, 53, said on social media that lawmakers had "the opportunity to show the side of history" they wanted to be.
“History will judge them according to their work for the benefit of Argentines or for the continued impoverishment of the people. ”
Milley won a resounding victory in October's election, benefiting from anger over decades of economic crisis in the South American nation, where annual inflation exceeds 200 percent and poverty levels reach 40 percent.
Milley began his term by devaluing the peso by more than 50 percent, cutting subsidies for fuel and transport, halving the number of ministries and scrapping hundreds of measures to liberalize the economy.
His reform package touches on many areas of public and private life, from privatization to cultural issues, penal law, divorce and the status of football clubs.
Marathon debate and protests in front of parliament
The House of Representatives tentatively approved the package by 144 votes to 109 on the third day of a marathon debate accompanied by protests and confrontations in front of parliament.
The bill may be subject to amendments before being submitted to the Senate.
Lorena Viaverdi, a member of Milley ’ s far-right Progress of Freedom party, said: “We have two clear choices: either we become the world ’ s largest slum, or we continue on this path to prosperity and freedom. ”
Argentine government withdraws tax reforms from broad bill
But opposition lawmaker Leandro Santoro cited the 2001 economic and social crisis as an example of the dangers of free market reforms, saying, “We Argentines know what happens when the economic model focuses on adjustment and deregulation. ”
On Friday, police again fired tear gas at crowds of protesters in front of parliament.
It came just over a week after tens of thousands of Argentines took to the streets in a major challenge to Melli ’ s budget-cutting policies.
In support of Melli ’ s reforms, the International Monetary Fund (IMF) agreed on Wednesday to disburse about $4.7 billion to Argentina.
More from the middle gate.
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The opposition fears the reforms will worsen social and economic problems, citing the 2001 crisis as an example.

Title:

Content: Argentine president's reforms pass first parliamentary test
Cairo - Al Wasat Gate Saturday 03 February 2024, 09: 58 am
Argentina ’ s lower house of parliament has taken a first step toward approving the sweeping package of economic, social and political reforms put forward by President Javier Milli ’ s government, prompting angry protests from the opposition.
The bill received “general ” approval in principle on Friday in the House of Representatives, whose members will examine Melli ’ s bills in detail next week.
Ahead of the vote, Milley, 53, said on social media that lawmakers had "the opportunity to show the side of history" they wanted to be.
“History will judge them according to their work for the benefit of Argentines or for the continued impoverishment of the people. ”
Milley won a resounding victory in October's election, benefiting from anger over decades of economic crisis in the South American nation, where annual inflation exceeds 200 percent and poverty levels reach 40 percent.
Milley began his term by devaluing the peso by more than 50 percent, cutting subsidies for fuel and transport, halving the number of ministries and scrapping hundreds of measures to liberalize the economy.
His reform package touches on many areas of public and private life, from privatization to cultural issues, penal law, divorce and the status of football clubs.
Marathon debate and protests in front of parliament
The House of Representatives tentatively approved the package by 144 votes to 109 on the third day of a marathon debate accompanied by protests and confrontations in front of parliament.
The bill may be subject to amendments before being submitted to the Senate.
Lorena Viaverdi, a member of Milley ’ s far-right Progress of Freedom party, said: “We have two clear choices: either we become the world ’ s largest slum, or we continue on this path to prosperity and freedom. ”
Argentine government withdraws tax reforms from broad bill
But opposition lawmaker Leandro Santoro cited the 2001 economic and social crisis as an example of the dangers of free market reforms, saying, “We Argentines know what happens when the economic model focuses on adjustment and deregulation. ”
On Friday, police again fired tear gas at crowds of protesters in front of parliament.
It came just over a week after tens of thousands of Argentines took to the streets in a major challenge to Melli ’ s budget-cutting policies.
In support of Melli ’ s reforms, the International Monetary Fund (IMF) agreed on Wednesday to disburse about $4.7 billion to Argentina.
More from the middle gate.
Related Titles
Central Bank of Egypt raises interest rates by 2%
Oil prices rise after OPEC + decision
Meta reports higher profits in the fourth quarter of 2023
The labor market is improving more than expected in the United States.
Turkey's central bank governor resigns after 'scandal'...
More...
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Who has opposed Milei's proposed layoff order?

The IMF will disburse $4.7 billion to Argentina to support Milei's reforms, sparking parliament protests.

Title:

Content: Argentine president's reforms pass first parliamentary test
Cairo - Al Wasat Gate Saturday 03 February 2024, 09: 58 am
Argentina ’ s lower house of parliament has taken a first step toward approving the sweeping package of economic, social and political reforms put forward by President Javier Milli ’ s government, prompting angry protests from the opposition.
The bill received “general ” approval in principle on Friday in the House of Representatives, whose members will examine Melli ’ s bills in detail next week.
Ahead of the vote, Milley, 53, said on social media that lawmakers had "the opportunity to show the side of history" they wanted to be.
“History will judge them according to their work for the benefit of Argentines or for the continued impoverishment of the people. ”
Milley won a resounding victory in October's election, benefiting from anger over decades of economic crisis in the South American nation, where annual inflation exceeds 200 percent and poverty levels reach 40 percent.
Milley began his term by devaluing the peso by more than 50 percent, cutting subsidies for fuel and transport, halving the number of ministries and scrapping hundreds of measures to liberalize the economy.
His reform package touches on many areas of public and private life, from privatization to cultural issues, penal law, divorce and the status of football clubs.
Marathon debate and protests in front of parliament
The House of Representatives tentatively approved the package by 144 votes to 109 on the third day of a marathon debate accompanied by protests and confrontations in front of parliament.
The bill may be subject to amendments before being submitted to the Senate.
Lorena Viaverdi, a member of Milley ’ s far-right Progress of Freedom party, said: “We have two clear choices: either we become the world ’ s largest slum, or we continue on this path to prosperity and freedom. ”
Argentine government withdraws tax reforms from broad bill
But opposition lawmaker Leandro Santoro cited the 2001 economic and social crisis as an example of the dangers of free market reforms, saying, “We Argentines know what happens when the economic model focuses on adjustment and deregulation. ”
On Friday, police again fired tear gas at crowds of protesters in front of parliament.
It came just over a week after tens of thousands of Argentines took to the streets in a major challenge to Melli ’ s budget-cutting policies.
In support of Melli ’ s reforms, the International Monetary Fund (IMF) agreed on Wednesday to disburse about $4.7 billion to Argentina.
More from the middle gate.
Related Titles
Central Bank of Egypt raises interest rates by 2%
Oil prices rise after OPEC + decision
Meta reports higher profits in the fourth quarter of 2023
The labor market is improving more than expected in the United States.
Turkey's central bank governor resigns after 'scandal'...
More...
Most preferred in this section.

Javier Milei introduced a neoliberal program to address Argentina's inflation crisis.

What economic issue did Milei want to address?

The program has been met with opposition due to concerns about its impact on social stability and citizens' rights.

Balancing economic reform with social stability and citizens' rights will be a key challenge.

The reform package may reshape Argentina's economic and social landscape, reflecting the country's complex socio-political reality.

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

Javier Milei's dollarization plan may burden the private sector, but he calls it 'transitory'.

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 aims to avoid hyperinflation by implementing a 'hyper-orthodox adjustment' with a restructured Central Bank and a sincere exchange market.

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?

Dollarizing the economy would require congressional approval and possibly a constitutional change in Argentina.

Argentina lacks $35-50 billion to replace pesos and may struggle to borrow it.

What issue did Milei want to address without printing money?

Dollarizing an economy can be painful, especially for those with existing deposits, due to the exchange rate used for conversion.

Milei's proposed reduction of government size will face opposition from civil servants who may lose their jobs.

How will Milei's reforms impact workers?

Privatizing government functions can be fraught with difficulties and cause years of disruptions.

Argentina's president serves a four-year term, potentially too short to see the benefits of radical free-market reforms.

Milei's coalition lacks a Senate majority, requiring coalition-building to pass laws.

Argentina's heavy debt, including to the International Monetary Fund, may limit Milei's ability to implement reforms.

What issue did Milei want to address without printing money?

The government will meet with provincial governors to address the local economic impact and coordinate a response.

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.

Some provinces, like Santiago del Estero and San Luis, have declared economic emergencies due to recent measures impacting local economies.

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.

Córdoba, Santa Fe, and Entre Ríos have expressed concerns over increased export duties.

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 President has pledged to eliminate things libertarian liberals dislike after rearranging 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.

Argentina's President-elect Javier Milei plans to replace the peso with the US dollar.

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

What economic issue did Milei want to address?

Dollarization could deplete Argentina's US dollar reserves, potentially leading to hyperinflation.

Title:

Content: International News

Who Is Javier Milei?

Alex Paszkowicz

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

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

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

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

The Peronist political movement has been pushed out of government

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

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

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

Milei used his platform […] to circulate conspiracy theories

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

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

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

“The reconstruction of Argentina begins” [Milei]

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

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

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

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

Aims to sever ties with China

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

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

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

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

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

Donald Trump believes Milei will “Make Argentina Great Again”

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

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

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

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

Alex Paszkowicz

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

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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

Dollarization may offer Argentina a safe path to avoid monetary collapse and implement needed reforms.

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

Argentina's central bank lacks independence, and dollarization may be a solution.

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

Argentina's risk of hyperinflation stems from the central bank's lack of restraint, not dollarization plans.

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

Milei's plan aims to slash spending and achieve a budget surplus in a country with a history of fiscal mismanagement.

Title:

Content: Milei Experiment

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

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

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

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

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

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suspended 366 decrees to ease economic controls and reduce spending.

What issue did Milei want to address without printing money?

The defeat of a recent omnibus bill highlights challenges for Milei's ambitions.

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

Javier Milei introduced a neoliberal program to address Argentina's inflation crisis.

What economic issue did Milei want to address?

Milei has introduced an 83-page decree to repeal over 300 laws, facilitating privatization and deregulation.

How will Milei's reforms impact workers?

What does Milei promote in terms of healthcare and education?

The NDU includes measures like eliminating supermarket and rent regulations, and labor reforms to cut pregnancy leave and extend job probation periods.

How will Milei's reforms impact workers?

What industries were affected by Milei's deregulations?

Argentina's economic reform package targets its crisis, marked by over 200% inflation.

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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.
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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

As of 2024, what are the statistics regarding poverty?

annual inflation rate of 211% is highest in 32 years

President Milei blames the economic crisis on excessive spending by previous Peronist governments.

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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

Javier Milei's economic plan includes budget cuts and tax hikes to achieve a fiscal surplus in his first year.

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

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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

What issue did Milei want to address without printing money?

The plan involves devaluing the peso-dollar exchange rate to 800 pesos, a 120 percent decrease.

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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

Economy Minister 'Toto' Caputo's measures have sparked alarm, with rising prices, especially for gasoline and food, signaling a potential spike in inflation.

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

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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

As of 2024, what are the statistics regarding poverty?

annual inflation rate of 211% is highest in 32 years

Milei needs legislative support for his reform package, possibly relying on an 'anti-Peronist' front.

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

Following
Click to save this article.
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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

Argentina's government, under President Javier Milei, has introduced economic reforms, including currency devaluation and the abolition of subsidies for key services.

Devalued the peso
cut transport and energy subsidies

The government aims for a zero budget deficit, an ambitious goal amid the current economic situation.

What issue did Milei want to address without printing money?

The reforms include export duties and taxes that may affect the poor and vulnerable.

The government will abolish subsidies for low- and middle-income households by December 2026.

The authorities have introduced a tax amnesty and plan to privatize 41 state-owned companies, including YPF.

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

The government has not outlined a plan to address potential social and economic challenges, including increased poverty and inequality.

The opposition fears the reforms will worsen poverty and inequality, citing the 2001 crisis as an example.

Title:

Content: Argentine president's reforms pass first parliamentary test
Cairo - Al Wasat Gate Saturday 03 February 2024, 09: 58 am
Argentina ’ s lower house of parliament has taken a first step toward approving the sweeping package of economic, social and political reforms put forward by President Javier Milli ’ s government, prompting angry protests from the opposition.
The bill received “general ” approval in principle on Friday in the House of Representatives, whose members will examine Melli ’ s bills in detail next week.
Ahead of the vote, Milley, 53, said on social media that lawmakers had "the opportunity to show the side of history" they wanted to be.
“History will judge them according to their work for the benefit of Argentines or for the continued impoverishment of the people. ”
Milley won a resounding victory in October's election, benefiting from anger over decades of economic crisis in the South American nation, where annual inflation exceeds 200 percent and poverty levels reach 40 percent.
Milley began his term by devaluing the peso by more than 50 percent, cutting subsidies for fuel and transport, halving the number of ministries and scrapping hundreds of measures to liberalize the economy.
His reform package touches on many areas of public and private life, from privatization to cultural issues, penal law, divorce and the status of football clubs.
Marathon debate and protests in front of parliament
The House of Representatives tentatively approved the package by 144 votes to 109 on the third day of a marathon debate accompanied by protests and confrontations in front of parliament.
The bill may be subject to amendments before being submitted to the Senate.
Lorena Viaverdi, a member of Milley ’ s far-right Progress of Freedom party, said: “We have two clear choices: either we become the world ’ s largest slum, or we continue on this path to prosperity and freedom. ”
Argentine government withdraws tax reforms from broad bill
But opposition lawmaker Leandro Santoro cited the 2001 economic and social crisis as an example of the dangers of free market reforms, saying, “We Argentines know what happens when the economic model focuses on adjustment and deregulation. ”
On Friday, police again fired tear gas at crowds of protesters in front of parliament.
It came just over a week after tens of thousands of Argentines took to the streets in a major challenge to Melli ’ s budget-cutting policies.
In support of Melli ’ s reforms, the International Monetary Fund (IMF) agreed on Wednesday to disburse about $4.7 billion to Argentina.
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Most preferred in this section.

Who has opposed Milei's proposed layoff order?

President Milei says it will take at least a year and a half to solve inflation, requiring a period of economic decline beforehand.

What economic issue did Milei want to address?

The government is seeking to renegotiate its IMF debt agreement and explore alternative financing options, including a currency swap with China.

What issue did Milei want to address without printing money?

The country's 40% poverty rate may be addressed by the government's reforms, which aim to improve living standards.

As of 2024, what are the statistics regarding poverty?

Milei's reforms may lead to short-term economic pain, including increased poverty.

Dollarising an economy can take years to lower inflation rates.

Reducing government size and privatising services like healthcare and education will face opposition and transition difficulties.

What does Milei promote in terms of healthcare and education?

Individuals to pay for their own services

The government acknowledges that economic reforms may increase poverty and inequality, but has not outlined a solution.

The government faces a challenge to meet its zero deficit pledge amid an expected 2.8% economic contraction.

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 IMF expects Argentina's economy to contract by 2.8% 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

The government has not announced measures to mitigate the reforms' impact on vulnerable populations.

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: 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: 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: Argentine President Announces Major Plan to Liberalize Economy
Cairo - Center Gate Thursday 21 December 2023, 09: 53 am
Argentina is awaiting a presidential decree to liberalize the struggling national economy announced by hard-line liberal President Javier Milley on Wednesday in a televised speech aimed at starting the path of rebuilding the country, restoring freedom and independence for individuals, and disarming the myriad regulations that have hampered economic growth.
In his speech, Milley said he would amend or repeal more than 300 of the current restrictions, regulations and controls, including those related to rents and labor laws.
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The president, who was elected in November, said one of the measures to be included in the decree would be the repeal of the rent law “so that the real estate market starts to run smoothly again and so that rent is not a problem. ”
Privatization of public companies
Laws prohibiting the privatization of public companies will also be repealed, he said, noting that all such companies will be transformed into limited liability companies in preparation for their privatization.
Milley also announced his intention to “modernize the labor law to facilitate the process of creating real jobs, and amend the company law so that football clubs can become limited liability companies. ”
The decree amends and removes a long series of other regulatory restrictions in sectors ranging from tourism, satellite internet, pharmacy, agriculture and international trade.
For the decree to enter into force, it must be published in the Official Gazette, and then examined by a joint committee of the House of Representatives and the Senate to determine whether or not it should be repealed.
Constitutional lawyer Emiliano Vitaliani told AFP that the decree would only be revoked if it was rejected by the Senate and the House of Representatives.
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Argentina has launched reforms to reduce its fiscal deficit and control inflation.

What issue did Milei want to address without printing money?

The reforms have sparked opposition, including a 12-hour strike by the General Confederation of Labour (CGT) in the capital.

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.

Who has opposed Milei's proposed layoff order?

The strike affected various services, including transportation and public services, and led to hundreds of flight cancellations.

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.

The government says austerity measures are necessary due to years of overspending and huge debts, including a $44bn IMF deal.

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.

The opposition claims the reforms will increase poverty and inequality, with some p

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.

Who has opposed Milei's proposed layoff order?