Argentina: Javier Milei, the libertarian President of Argentina, has vowed to pursue his radical economic liberalisation plans with or without the backing of parliament.
In a State of the Union-style speech to lawmakers, Milei announced his plans for economic reforms to lift the country out of decades of decline. “We are going to change the country for good, with or without the support of political leaders, with all the legal resources of the executive. If you look for conflict, you will have conflict,” the President said.
Milei handed over a gauntlet to parliament after legislators last month denied his omnibus reform bill, which almost halved the number of proposed changes, despite hard negotiations with the opposition. In a more conciliatory tone towards local governors, Milei proposed a 10-point “social pact” that would reform the framework for distributing tax funds between the federal government and provinces.
The libertarian President, who won a November runoff, devalued the peso by over 50 percent reduced state subsidies for fuel and transportation, halved the number of ministries, and abolished hundreds of regulations.
The government claimed credit for initial signs of economic recovery, such as the first monthly budget surplus in 12 years and an extension of foreign currency reserves. However, the high inflation rates and austerity measures implemented by Milei have had a significant impact on Argentinians, leading to strikes and protests.
Milei, an anarcho-capitalist who aims to restore Argentina’s “golden age” economy, warns of a ‘shock adjustment’ to fix the economy. “I ask for patience and trust. It will be some time before we can perceive the fruit of the economic reorganisation and the reforms we are implementing,” the President stated.
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