The Argentine president assured that the objective is to make 3,200 more structural reforms before finishing his government
by the El Reportero wire services
The president of Argentina, Javier Milei, offered a message on national television this Tuesday, December 10, on the occasion of the first year of his administration.
The president recorded his speech this afternoon from the white room of Casa Rosada, the headquarters of the Executive in Buenos Aires, to point out the achievements of his administration 365 days after assuming power, and to advance the measures of what he called “the deep chainsaw.”
At the beginning of his speech, Milei thanked the “ordinary” Argentines who endured the governments of “the caste,” as he usually calls the traditional political parties, and who with their vote were willing to resist the strong adjustment applied by the libertarian government.
“The sacrifice they have made is moving. I assure you that it will not be in vain,” he said. And he added that, due to the situation inherited, “getting the country out of misery would require going through a painful impasse.”
“Whether you like it or not, Argentina has emerged from the hole into which politicians sank us. And today, for the first time in decades, the sun of hope is shining,” he said.
“Happy times are coming”
For Milei, the country is heading towards a future of prosperity that for many is “unimaginable.” “We have overcome the test of fire. We are emerging from the desert. The recession is over and happy times are coming,” said the president. However, he clarified: “We have not reached port, but we can end the year with relief, and with the certainty that next year will be better.”
According to Milei, the future objective is to make 3,200 more structural reforms before finishing his government. Meanwhile, for next year, the head of State assured that there will be “sustained growth” thanks to the “cyclical recovery”, the recovery of salaries and pensions, due to the fall in inflation.
In addition, he promised the end of the so-called ‘cepo’ exchange rate, an economic measure that restricts the purchase of foreign currency, and it will be “forever”. According to Milei, soon Argentines will be able to make their transactions in the currency they wish.
Free trade
When mentioning Mercosur, the president said that the South American bloc must “increase the autonomy” of its members, so that each country can trade with whomever it wants. In that sense, he anticipated that Argentina’s objective for next year is to promote a free trade agreement with the US.
He also mentioned that he will apply an “anti-mafia law, in the image and likeness of the RICO law, which liquidated organized crime” in the North American country 50 years ago. He also said that the project to lower the age of criminal responsibility for minors who commit crimes will become a reality.
Management summary
After having applied drastic measures to cut public spending, which he symbolized under his proclaimed “chainsaw”, the economist who defines himself as a “libertarian liberal” has managed to contain the high rates of inflation.
The consumer price index fell from 25.5 percent in December 2023 to 2.7 percent in October of this year, while the year-on-year measurement fell from 211.4 percent to 193 percent, although it is estimated that it will be lower at the end of 2024.
Along the way, consumption and industrial production suffered sharp declines, driven by a deep recession and its consequent layoffs.
Meanwhile, under the premise of reducing the State to a minimum, 13 Ministries were eliminated, state agencies were closed and budgets for Science, Culture and Education, among other areas, were cut. There was also a sharp cut in the salaries of retirees, and all public works with national financing were suspended.
In Milei’s first year as president of the country, it can be said that there are certain economic parameters that have stabilized. In addition to controlling inflationary tension, he managed to break through and lower the country risk barrier, managed to keep the value of the dollar at bay, and achieved fiscal and trade surpluses.
However, the social consequences are overwhelming. Poverty rose from 40.1 percent to 52.9 percent in the first 6 months of Milei’s government. And unemployment rose 1.4 percent year-on-year and reached 7.6 percent of the population in the second quarter of 2024.
– With reports by RT.
