Argentina under new leadership: President Javier Milei's radical reform course

Argentina under new leadership: President Javier Milei's radical reform course

According to a report by amp.dw.com, the new Argentine President Javier Milei quickly presented a comprehensive reform course for the Argentine economy. This includes the devaluation of the Argentine peso, the halving of ministries and a radical deregulation of the economy.

Poverty and inflation represent the greatest challenges for the Argentine economy. According to the Catholic University (UCA), almost half of Argentines live below the poverty line, while annual inflation is around 160 percent. Milei has put forward 30 emergency measures, including repealing laws protecting workers and tenants, privatizing state-owned companies and removing export restrictions.

However, Milei's reform course faces resistance in Congress because the government does not have a majority. This could trigger a power struggle between “reformers” and “blockers” and hinder the implementation of the reforms. Trade unions have already announced protests and criticize the government's measures as an attempt to criminalize protests.

The new reforms could lead to a long social debate about the right way out of the economic crisis in Argentina. Opinions on the reform path are divided, with some experts describing the measures as avant-garde while others see them as a chilling example.

It remains to be seen how the reforms will affect the Argentine market and financial sector, especially given the opposition in Congress and the announced protests by the unions. The uncertainty about the outcome of the reform efforts could influence the willingness to invest and put further strain on the economy.