Trump is “proud”
Election winner Milei announces radical restructuring of Argentina
By Roland Peters, Buenos Aires
November 20, 2023, 9:01 a.m
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In Argentina, the libertarian Milei swept the Peronists out of government with a landslide victory. Populists are enthusiastic: Bolsonaro congratulates, Trump is downright euphoric. The election winner announces a drastic restructuring of the country – and expects resistance.
Less than three weeks. Libertarian Javier Milei, who was elected Argentina’s president, has so little time to put together his government and decide what steps to take first after the political earthquake. Inflation is over 140 percent, and during the election campaign he promised to “end it forever.” Poverty in the South American country is now at 40 percent due to the permanent loss of purchasing power.
In his first comments, Milei only thanked the “good Argentinians” for his landslide victory. He warned the others not to “resist” the fundamental changes. The South American country, the continent’s second-largest economy, may have wild months and years ahead. With a completely open outcome.
First of all, the self-proclaimed anarcho-capitalist, who won the runoff election against the government alliance candidate in a landslide with almost 56 percent, was able to briefly look at the recognition and praise of his international like-minded people. Donald Trump sent congratulations on the “great election” south. “MAKE ARGENTINA GREAT AGAIN!” The ex-US President wrote to Milei: “The whole world was watching you. I am very proud of you.” Brazil’s former president Jair Bolsonaro and his son also congratulated.
Celebrating crowd in front of Milei’s campaign headquarters in the center of Buenos Aires
(Photo: AP)
In his two short victory speeches, the economist first said to colleagues from his party “La Libertad Avanza” (“Freedom advances”) and then to supporters in the center of the capital Buenos Aires: “Today the reconstruction of Argentina begins!” There is no room for gradual change. “The changes the country needs are drastic.” He drew comparisons with Argentina in the 19th century: “We will become a world power again,” he announced. This will take 35 years. Never in Argentine history has a political movement remained in power for nearly as long.
Slash, privatize, dollarize
By far the most important concerns in surveys were inflation and high consumer prices, followed by corruption and security. Milei announced that he wanted to abolish the “excrement” of the national currency, the peso, and the central bank in order to introduce the US dollar as the official means of payment. It is not clear whether this is even feasible. Argentina is heavily indebted, has hardly any foreign currency and has to constantly juggle finances in order not to go bankrupt. Milei therefore wants to close ministries, drastically cut public spending, dismantle the “omnipresent state” and privatize what is not nailed down. In view of the drastic changes, he expects resistance on the streets and announced that he would take tough action against it.
The economist is a supporter of an originally Austrian economic theory that propagates radically free markets and individualism. For years, the future president has been known in Argentina as a fierce opponent of the government, the state and socially oriented movements. Over the course of his performances he has presented a variety of extreme suggestions and beliefs; For example, that the organ trade should be a free market like any other, that it would radically loosen gun laws or consistently eliminate state social programs. He only went into politics three years ago. He had told his confidants that God had given him the task to do this.
Disappointment among Massa’s supporters. State employees have to fear for their jobs.
(Photo: dpa)
Milei’s future vice president is Victoria Villarruel, who has ties to right-wing groups around the world and is the daughter of an officer in Argentina’s past military dictatorship. Villaruel doubts the official number of victims of 30,000 dead and disappeared people of the economically liberal dictatorship and recently suggested abolishing the central memorial site of their victims so that “the entire Argentine population” could “enjoy” the area. In September, the United Nations declared the museum and the site a world heritage site.
New head, failed ideas
Milei was the favorite for the presidency before the first round of voting, but surprisingly came second to current Economy Minister Sergio Massa. He then allied himself with the bourgeois ex-president Mauricio Macri and his candidate Patricia Bullrich, who was eliminated in third place. In the runoff election against Massa, the votes of the civil alliance brought him clear success. Macri, who helped cause the current economic crisis with his market-liberal measures during his presidency from 2015 to 2019, wrote after Milei’s victory that “a spectacular future of growth, work, education and freedom awaits us.” Bullrich was security minister under him.
The entrepreneur Elon Musk also commented on Milei’s victory on X: “Prosperity is coming to Argentina,” he said. Colombia’s left-wing President Gustavo Petro sees things completely differently. Milei’s victory is “sad for Latin America” because neoliberalism no longer has any answers to the current problems. El Salvador’s “Bitcoin dictator” Nayib Bukele mockingly quoted this tweet: “Now say it without crying.”
Discussions on the first economic measures and the future cabinet are scheduled to begin on Monday, a public holiday in Argentina. Many of Milei’s ideas had already been implemented in the 1990s. Milei’s advisors include the deputy economics minister from back then. His former boss, Domingo Cavallo – also partly responsible for the total collapse at the time – called Milei the “best economics minister in history”.
After hyperinflation, under President Carlos Menem, Cavallo pegged the peso to the dollar and thus got the currency devaluation under control for a few years. But at the same time, the measures destroyed parts of the industry, caused unemployment and resulted in national bankruptcy, destroyed private assets and street battles with dozens of deaths. The memory of this is still there for part of the population. But the electorate’s fear of déjà vu was not as great as its desire for a change of government. People will get that. From December 10th, the libertarian Milei will be sitting in the Argentine presidential palace.