Milei assumes presidency of Argentina: “there is no money, there is no alternative to ‘shock’”

The libertarian Javier Milei on Sunday he assumed the presidency of Argentina with the promise of applying an orthodox plan that would put an economy devastated by inflation and poverty back on track, surrounded by a fervent crowd that approached the center of Buenos Aires to celebrate with Argentine flags.

After unseating the historic Peronism in a recent runoff, the eccentric economist who turned to politics only three years ago made a crude diagnosis of the crisis that the country is suffering.

“Today, we good Argentines have decreed the end of the populist night and the rebirth of a prosperous and liberal Argentina,” he said from the balcony of the Government House before tens of thousands of followers.

“Shock”

The new president highlighted that monthly inflation of between 20% and 40% is expected between December and February, which could skyrocket to hyperinflation of 15,000% annually if a drastic cut in spending is not applied.

“There is no alternative to adjustment and there is no alternative to ‘shock’,” Milei previously stated on the steps in front of the National Congress, where he received the baton of command from the now former center-left president Alberto Fernández. “We know that in the short term the situation will worsen, but then we will see the fruits of our efforts having created the foundations for solid growth over time,” added Milei, who assured that the adjustment will have the State as its main target and not the sector. private.

Cutout

In his first Government action, Milei ordered in the afternoon, through a Decree of Necessity and Urgency (DNU), the reduction of ministries from 18 to nine, a measure with which he aims to cut public spending.

Many measures of the new Government, which could be known on Monday, will depend largely on the negotiations it enters into with the opposition, since Milei does not have a majority in Congress or allied provincial governors.

Disruptive initiatives such as the dollarization of the economy, the elimination of the central bank and the privatization of public companies could be momentarily put on hold.

“During the campaign Milei made different specific proposals, especially in the economic order, which it will not be able to carry out, among other things due to its lack of legislative quorum,” political analyst Federico Aurelio, president of the Aresco consultancy.

“But the factor by which he will sustain the support he has today will not be whether or not he fulfills those promises, but rather whether the economic situation of the country and households really improves,” he added.

You will sign your access to the OECD

Argentina and the Organization for the OECD agreed that today, Monday, the South American country’s access to the international organization will be signed, the future Minister of Foreign Affairs, Diana Mondino, announced yesterday.

“This morning we agreed with Mr. Andreas Schaal that tomorrow Argentina signs accession to the OECD,” he said before Milei’s swearing-in ceremony.

Source: Reuters and EFE