Argentina’s President Javier Millay has slashed public spending, but 100 days into his presidency, social tensions are simmering and he is still struggling to pass his flagship economic reforms.
AFP takes a look at the highlights since the libertarian leader took office on December 10 pledging to end the “public spending orgy”.
The chainsaw
Ahead of an election in which he crushed Argentina’s traditional political parties, Millay campaigned with an activated chainsaw to symbolize his plans to curtail a bloated state.
Once in office, he halved the cabinet to nine ministries, cut 50,000 public sector jobs, suspended all new public works contracts and removed generous fuel and transport subsidies.
The government boasts its first budget surplus in more than a decade and has won the approval of the International Monetary Fund, which has a $44 billion credit facility with Argentina.
French parliament votes to slow down fast fashion
“The stabilization is working, better than first thought, but there are questions about governance,” independent economist Marina Dal Pogetto said in a recent television interview.
Milei has come under fire for closing the state news agency and the anti-discrimination agency and removing funding for scientific research and the film industry.
Political obstacles
Legally speaking, Milei’s ambitious plans have not gone according to plan.
His party is a minority in Congress and opponents have repeatedly rejected his flagship reforms.
The Senate last week rejected a “mega-order” that seeks to change or repeal more than 300 existing standards, such as lifting rent caps and relaxing labor laws.
However, it only needs approval from one House to become law and the ordinance has yet to be tabled before the House.
IMF chief Georgieva says she is “willing to serve” a second term
But even if it passes, analysts say its constitutionality is in doubt.
In February, a separate Omnibus Act, which seeks to make changes to the economy, politics and even some aspects of privacy, was rejected by lawmakers for rewrite.
“Milley would like to advance his political and economic work at 100 kilometers per hour, but the government’s cruising speed is much lower,” Carlos Malamud, a researcher at the Royal Elcano Institute, told AFP.
Misery and hunger
Millay took to his duties warning that things would get a lot worse for the Argentinians before they got better, and they have.
It began by devaluing the peso by 54 percent and removing price controls.
These measures, along with the removal of fuel and transport subsidies, led to a decline in Argentine purchasing power, causing consumption and economic growth to slow.
Monthly inflation is starting to ease, but annual inflation stood at 276% in February.
Cuba’s monetary conundrum: four ways to pay
In the absence of recent official figures, a private think tank estimated that about 57 percent of the country now lives in poverty.
Meanwhile, the government has frozen aid to some 40,000 soup kitchens pending an audit of their operations.
On Monday, police fired tear gas and used water cannons against thousands protesting austerity measures.
“The hunger in the neighborhoods is terrible. They have not delivered goods to the kitchens for four months and the children need it,” Maria Medina, from the left-wing organization Polo Obrero, told AFP.
The Pope, Trump and Israel
Milei hasn’t stopped courting controversy since she swapped the colorful campaign trail for the presidency.
A social media addict, he trashes his opponents online — like lawmakers who abandoned his reforms — praises himself and shares outlandish memes.
He recently raised eyebrows for telling a group of high school students that he views abortion as “murder” and banning the use of gender-inclusive language in the military and public sector.
China closes key political meeting with pledges to boost struggling economy
During a speech to world leaders in Davos in January, she took aim at socialism, “radical feminism”, the “bloody abortion agenda” and “social justice”.
He flew to Rome to meet with Argentina’s Pope Francis — with whom he reconciled after repeatedly insulting him on the campaign trail — and met with former US President Donald Trump on the sidelines of a conservative conference.
Miley, who was raised in a Catholic family but has studied Jewish scriptures, also visited Israel.
Source: AFP