On Tuesday, Argentine President Javier Milei sharply criticized past “populist” regimes, unveiling plans to cut 70,000 government positions.
This move marks a deeper push into fiscal reforms that began in December.
Milei, speaking in Buenos Aires at the International Economic Forum of the Americas, reflected on the grave challenges he faced from day one.
He took office on December 10 and has since enacted several reforms.
He accused previous administrations of leading Argentina into severe economic distress, destroying capital and productivity. This, Milei explained, plunged the country into a dire situation.
Inflation nearly triggered hyperinflation in early December, with prices soaring by 1% daily.
Milei underscored the launch of a strict stabilization plan to avert financial disaster while prioritizing social welfare.
The populist era, according to Milei, saw Argentines lose 80% of their earnings, pushing over half into poverty and 10% into extreme hardship.
Milei outlined fiscal adjustments his administration has made to aim for zero deficit.
These include halting discretionary funding to provinces and dismissing 50,000 public workers, with plans to terminate an additional 20,000 contracts.
Despite the hurdles, Milei is optimistic, pointing to a shift in public sentiment. Initially, only 20% of citizens felt hopeful about their future, but this number has since climbed to 50%.
Milei believes in a brighter future, buoyed by Argentines’ growing faith in freedom.
However, Rodolfo Aguiar, head of the State Workers’ Association (ATE), announced a strike in response to the job cuts.
He contested Milei’s ability to execute the layoffs, highlighting nationwide escalating protests and promising resistance against unfair dismissals.
Background
Javier Milei, embracing libertarian principles, took the helm in Argentina with a commitment to rapid fiscal reforms.
His administration marks a departure from the past, achieving two consecutive fiscal surpluses within his first 100 days—a feat not seen in over a decade.