It is the first time in the history of Argentina that a president campaigns saying that he is going to make a huge economic adjustment, and the people vote for him. It is the first time in the history of Argentina that a candidate wins an election with barely two years of experience in politics; and it is the first time in the history of Argentina that an economist arrives at the Casa Rosada. That is Javier Milei, who on Tuesday, through his Minister of Economy Luis “Toto” Caputo, informed the nation of the first economic measures that will be carried out at the beginning of his mandate.
“In the coming months we are going to be worse than before, particularly in terms of inflation. It is preferable to tell an uncomfortable truth than a comfortable lie,” Caputo concluded in his speech. The famous chainsaw with which the ultraliberal appeared so much during the presidential campaign is beginning to be applied.
The Managing Director of the IMF (International Monetary Fund), Kristalina Georgieva, supported the measures of the economy minister and published a message on the social network X: “I welcome the decisive measures announced by President Javier Milei and his economic team to address the important “Argentina’s economic challenges. It is an important step towards restoring stability and rebuilding the country’s economic potential.” The wink from the head of the IMF caused a good impact in the LLA party (La Libertad Avanza).
In addition, Argentine bonds rose 3% on Wall Street this Wednesday and the Stock Market set a new record, reaching its highest prices of the year.
In the United States, Republicans in Congress are very active against the new Milei government. As a result of Caputo’s announced measures, Senator Marco Rubio and other congressmen sent a letter this Wednesday to President Joe Biden to “strengthen bilateral relations.” At the same time, US politician María Elvira Salazar asked the US Treasury and the International Monetary Fund to “urgently” negotiate the program with Argentina.
Among some of the 10 measures established by the new Government, the devaluation of the peso in the official market stands out; If a dollar cost 400 pesos, it will now be worth 800. Another resolution that also attracted attention was the non-renewal of contracts of people who have been in force for less than a year in the State, since this is “a common practice in the politics, incorporating thousands of family and friends before a change of government to maintain their privileges,” according to Caputo.
One of the promises that Milei has already fulfilled is the reduction of ministries by half: from 18 organizations there will now be no more and no less than nine. The viral video in which the ultraliberal removed the posters with the names of the ministries from a blackboard predicted this decision. In addition, they reduced the secretariats from 106 to 54.
“The situation is critical,” said presidential spokesperson Manuel Adorni, who explained at a press conference that “the decision is clear: there is no money and there must be concrete measures such as the Ministries Law and reduction of political positions.”
Milei’s government also announced that it will stop bidding on more public works and will cancel approved tenders whose development has not begun. “There is no money to pay for more public works. Infrastructure works will be carried out by the private sector,” said the Minister.
Milei’s chainsaw has begun its work. Although, for some, this has become a scissors, at least for now. Others, however, denounce that the adjustment has been excessive and disproportionate.