The last Sunday, The Argentines elected Javier Milei as their current president after the elections that were debated in that country. In a second round, the candidate of the “La Libertad Avanza” party managed to win with 55.69% over his opponent Sergio Massafrom “Unión por la Patria” who obtained 44.30%.
Before the triumph, now the new Argentine head of state has the enormous task of moving the country forward and regaining the trust of its citizens in the face of the economic crisis they face after the devaluation of their currency.
The now president of Argentina During his electoral campaign he announced what the economic mechanisms to face the difficult situation.
Milei economic plan
Among his first proposal is the elimination of central bank Reserve of Argentina to end the inflation and a monetary reform. According to the politician, this would allow us to move towards a scheme in which Argentines can trade in the currency they want.
“Milei says that the first thing to do is resolve the Leliq ball (liquidity bills), since the issuance for renewal is the cause of a large part of the inflation. That must be cut. When it stabilizes, then we can move forward with dollarization, which is neither more nor less than changing pesos for dollars.”Carlos Rodríguez, Ucema economist and one of the liberal’s advisors, explained to the newspaper La Nación.
Another proposal from Milei is reduce public spending by 15% after advancing in a reorganization of the State, which would imply that expenses are prioritized and costs begin to fall to support commerce. This measure would be accompanied by the elimination of 90% of taxes that have an impact of 2% in the GDP and hinder the economy.
Continuing with the proposals of Mileithe model of the UOCRA (Construction Workers Union of the Argentine Republic)an unemployment insurance scheme “with greater financial depth”.
According to his electoral campaign, the Ministry of Human Capital, since this would bring equal opportunities for labor reactivation, especially for young people. It is also a plan to reduce intermediaries in social plans that will have responsibility for key areas such as education, health and work. will be promoted technological progress, in addition to the multiple benefits obtained in other areas such as social or scientific areas.
Another project Javier Milei is the opening unrestricted trade (free trade), which would follow Chile’s experience to remove all types of limitations, both for exporting and importing, this will allow trade to help economic growth and reactivate other markets.
Also I know would eliminate energy subsidiesbut before touching the electricity ratesassured that the country has to recover economically.
Also within his plan, he denied that he was going to privatize education and health in the country of Argentina.
According to the portal’s analysis Bloombergone of the urgencies that the now president has, is to attack an inflation that reaches the 140% year-on-year and according to specialists, they could close 2023 above 185%.
In addition to the expected increase in exchange rateanother factor that would add to the increase in prices is the repressed infringement, which according to estimates would be at least 43%.
Another important challenge that the now president must take on is putting an end to the fiscal deficit that has afflicted Argentina for years. According to information from the Argentine economist, Francisco Ballester, the primary fiscal deficit has currently climbed to 3.2% of GDP from 2.4% when Minister Sergio Massa, who was a candidate in these last presidential elections, took office.
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