Reform projects slimmed down
Argentina’s “anarcho-capitalist” gives in to pressure
January 27, 2024, 9:51 a.m
Argentina’s new President Javier Milei wants to fundamentally change the country and almost tear down the state. His plans face strong resistance from the population, but also in parliament. The head of state is at least partially backtracking on legislative proposals.
The new Argentine President Javier Milei, who took office with radical reform promises, is making further cuts to his plans in the face of growing resistance. His government slimmed down the draft for the so-called omnibus law on Friday by removing pension and tax reform from the mammoth project. This is intended to create the basis for a parliamentary majority.
The omnibus law affects changes to several hundred laws. It is a central instrument for reducing the size of the state apparatus, reducing regulations, cutting subsidies, privatizing state-owned companies and collecting social benefits. Milei promised to lead Argentina out of the misery that has been going on for years by unleashing the economy. Economy Minister Luis Caputo promised that despite the changes to the omnibus law, the huge budget deficit would be eliminated.
With the concessions, Milei hopes to get support for his reform project from other parties in Congress. His Libertad Avanza party only has a small number of seats. According to Caputo, inflation is currently over 200 percent. However, their increase has slowed significantly in the past two weeks.
In Argentina, resistance to the Mileis course is beginning to form. The country’s largest unions went on strike on Wednesday. One of the previously abandoned plans is the privatization of the state oil company YPF.