Argentina’s New Leader Milei Initiates Extensive Economic Deregulation

Argentina’s recently elected leader, Javier Milei, announced a series of measures aimed at deregulating the country’s struggling economy. The comprehensive changes, outlined in over 300 presidential decrees, target various sectors, including rent and labor practices.

Milei, who assumed office just ten days ago, emphasized the need to dismantle regulations that have impeded economic growth. Argentina, facing severe economic challenges, has been grappling with inflation exceeding 160 percent year-on-year, with a significant portion of the population living in poverty.

In a televised speech from the presidential palace, Milei highlighted the urgency of taking bold steps to address the economic crisis. The measures include the elimination of a law regulating rent and rules preventing the privatization of state enterprises. Additionally, there are plans for a modernization of labor laws to facilitate job creation, along with other deregulatory measures affecting tourism, satellite internet services, pharmaceuticals, wine production, and foreign trade.

Following the announcement, public discontent manifested in protests near the Congress, where thousands of people voiced their concerns. Protesters expressed worries about the impact of the decrees on labor reform and rental laws.

The decrees, published in the government gazette, will undergo assessment by a joint committee of lawmakers within the next 10 days. Constitutional law expert Emiliano Vitaliani noted that the decrees could only be overturned if rejected by both the lower House and the Senate.

Milei, associated with the far-right Libertad Avanza party, faces criticism for the use of emergency decrees. While his margin in the legislature is limited, considering his party’s seats, it improves when factoring in the center-right Together for Change coalition.

Milei, a libertarian and self-described “anarcho-capitalist,” has already implemented substantial economic measures, including a significant devaluation of Argentina’s peso and cuts in state subsidies for fuel and transport.

The leader’s approach has been described as a form of “shock” therapy for the economy, and he has emphasized the necessity of spending cuts to address budget deficits. The administration has also suspended new public construction projects and state advertising for a year.

Milei’s victory in November was fueled by public dissatisfaction with recurring economic crises. The leader has underscored the historical pattern of budget deficits contributing to Argentina’s challenges and stressed the need for a significant reduction in state power.

While the measures have sparked protests, Milei maintains that the reforms are essential for the country’s economic recovery. The International Monetary Fund, owed $44 billion by Argentina, welcomed last week’s efforts to tackle inflation. As Argentina navigates through these changes, the impact on various sectors and public sentiment remains a focal point of observation.

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