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The words are over and it’s time to act to Javier Milei. The libertarian will assume the presidency of the Argentina with open but not unlimited credit for major surgeries to lift the economy out of its lethargy after years of inflation and strong regulations. At 53 years old, Milei will succeed the Peronist Alberto Fernández and will become the first economist in the history of the South American country to occupy the presidential seat, which he reached after just two years of political activism and outside the two coalitions that dominated the scenario in recent decades.
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With the chainsaw as an ultraliberal symbol and manual, Milei has four years to fulfill his promises to become a point and apart from what he called “populist decadence”. and make Argentina “great again”, like the slogan of its admired former US president, Donald Trump.
LOOK: Who is Victoria Villarruel, Milei’s vice president who challenges the consensus on the Argentine military dictatorship
After receiving the support of almost 56% of the votes in the flow from November, Milei warned Argentines that he was postponing his project to dollarize the economyWhat a will carry out a strong and inevitable adjustment that will place the fiscal accounts in order and will put an end to macroeconomic imbalances. He highlighted that the greatest weight will fall on the shoulders of “political caste”, although the damage is widespread.
Milei will inherit annual inflation that is heading towards 180%, poverty above 40%, a financial fiscal deficit of 5 points of the Gross Domestic Product (GDP), a labyrinth of exchange rate restrictions that, among other collateral damage, generated a commercial import debt of 43 billion dollars It is debt maturities of US$10.6 billion pay until April 2024, among other problems.
“There’s no money”, is the catchphrase of the future President.
The ABECEB consultancy projected that Milei will try to reduce the primary fiscal deficit from 3 to 4 points of GDP in 2024 focusing on cuts in “public works”operational expenses, transfers to the provinces and the operational deficit of public companies.”
“But it seems like that won’t be enough, so should advance more sensitive expenses If you seriously want to achieve tax adjustment” as retirements, social benefits, economic subsidies and salaries of public servants, warned in a recent report.
Experts wonder How will Milei carry out the reforms he intends with a cabinet of ministers provided by other political forces? it’s common Congress in which each law must be negotiated.
“The big challenge in making fiscal adjustment is political because Milei has no direct power over Congress and, on the other hand, social tolerance to adjustments is being tested”, warned economist Camilo Tiscornia, director of C&T Economic Advisors.
Advances of Freedomyour party, It has only 38 deputies out of 257 and seven senators out of 72. This forced the far right to weave alliances with related political spaces, such as a sector of the center-right coalition Together for Change it’s from dissident peronismin exchange for positions in his future cabinet of ministers.
“An important point is that society voted for him Milei knowing I would make the adjustment. Society understands that some sacrifice will have to be made, but the groups most directly harmed by these adjustments will resist; Protests have already been announced and it will be complex”, analyzed Tiscornia.
35.9% of Argentine households received some social assistance in 2023 through social income transfer programs and direct food assistance, which include the delivery of food to schools or canteens, according to a report by the Argentine Social Debt Observatory of the Argentine Catholic University released earlier this week, which estimated that poverty and indigence they reach 44.7% and 9.6% of the population, respectively.
To what extent are Argentines willing to tighten their belts without putting social peace at risk?
“It lasts less and less Honeymoon with the new presidents because people are fed up”, warned political analyst Orlando D’Adamo, director of the Center for Public Opinion at the University of Belgrano. “You have six months to see the light at the end of the road, otherwise it will be complicated.”. The voter in Argentina “He has a short memory.”
Source: Elcomercio
I am Jack Morton and I work in 24 News Recorder. I mostly cover world news and I have also authored 24 news recorder. I find this work highly interesting and it allows me to keep up with current events happening around the world.
