The new president has vowed to lift Argentina out of economic doldrums with what he calls anarcho-capitalist policies.
President of Argentina Javier Milei intends to carry out his extensive economic reforms, whether he got the support of other political leaders for them or not. Milei, a libertarian who took office in December, gave his first policy speech to the country’s congress on Friday.
– We are going to change the country permanently – with or without the support of political leaders, with all the legal resources of the executive branch, Milei told the decision-makers.
– If you seek conflict, you will get conflict, he added.
Milei has vowed to lift the Argentine state out of financial doldrums with what he calls an anarcho-capitalist policy, which includes, among other things, cuts and privatizations. He has made several controversial economic legislative initiatives, which have met with opposition.
– We have not yet seen all the effects of the disaster we inherited, but we are convinced that we are on the right path. For the first time in history, we are attacking the problem through its cause – the public finance deficit – and not through its symptoms, Milei said.
According to Milei, it will take some time before the fruits of the changes are noticeable, but he thinks Argentina is on the right track.
The low-income suffer from the freezing of subsidies
Trade unions, chambers of commerce and non-governmental organizations have more than 60 pending lawsuits related to Milei’s planned reforms. Argentina has also seen massive protests as citizens fear Milei’s plans will leave them poorer than before.
General strikes have also been organized in the country since the beginning of the year, which have, for example, closed schools and stopped hundreds of flights.
Milei’s extraordinary reform intentions are not limited to the economy, but touch almost all areas of life.
Milei began his term of office by, among other things, devaluing the value of the peso by 54 percent in relation to the dollar and by cutting state subsidies for fuel and transport. The president also abolished half of the ministries and canceled the regulation of economic life.
The government has previously said that some of Milei’s changes have already borne fruit. In January, for example, Argentina reported its first monthly budget surplus in 12 years, while the country’s foreign exchange reserves have grown.
In the grip of inflation, however, the poor suffer greatly. Milei has decided to cancel generous transport and energy subsidies and at least temporarily freeze support for tens of thousands of bread lines.
Package through, for example, by presidential decree
In the aftermath of his inauguration, Milei announced a package of laws consisting of 664 articles, with which he wanted, among other things, to deregulate. However, due to the reluctance of Congress, Milei first withdrew almost half of the articles and finally withdrew his entire reform package.
However, the president has said that he will bring his bill to Congress again. He has also threatened to approve his reforms by presidential decree if the MPs do not stand behind him.
The 53-year-old Milei, who emerged from outside politics, won the second round of the presidential election last November, but in Congress his party has only 40 representatives in the 257-seat lower house and seven in the 72-seat Senate.
Argentina is struggling with serious economic problems. Among other things, the country’s poverty level has increased to almost 60 percent and annual inflation to over 200 percent.