Javier Milei, the new anarcho-capitalist president of Argentina, is facing opposition from the country’s courts and unions as he attempts to implement his “shock therapy” reforms to the national economy.
After getting inaugurated, Milei immediately began pursuing his economic agenda, aiming to slash over 300 regulations in a giant omnibus action passed as an executive order. However, this has been temporarily blocked by an Argentine court known as the National Chamber of Labor Appeals. The Milei administration is appealing the block in court, and will have to gain support in the nation’s lower and upper houses of Congress—which are both controlled by parties opposed to Milei.
Learn the benefits of becoming a Valuetainment Member and subscribe today!
The bill is also being opposed by the powerful General Labor Confederation (CGT). Socialist organizations and labor unions staged a mass protest against Milei’s reforms and government spending cuts.
(RELATED: Argentina President Milei Set to Fire 5,000 Government Workers)
In December, it was announced by Economy Minister Luis Caputo that Argentina would be intentionally weakening its peso by over 50 percent. He also announced the Milei administration will be cutting energy subsidies and cancelling tenders of public works in attempt to cut the national deficit and tame the 161 percent inflation rate plaguing the country. The peso has lost about 90 percent of its value against the US dollar.
The country owes about $45 billion to the International Monetary Fund (IMF). Of that debt, $10.6 billion is supposed to be paid back to the NGO lender as well as private creditors in April. Argentina is also set to make a $1 billion payment to foreign bondholders in an attempt to restore its reputation in the eyes of investors.
On January 10th, the Milei administration and the IMF reached a deal to release $4.7 billion as part of their debt restructuring project. “Understandings were reached on a strengthened set of policies to restore macroeconomic stability and bring the current program back on track,” the IMF said in a statement.
Social
On the cultural side of things, left-of-center activists continue to agitate against Milei’s administration. Feminist journalists claim that he has introduced an “ultra-right witch hunt,” highlighting Milei’s plan to call a referendum on abortion laws.
Milei also recently changed his tone on Pope Francis, inviting him to visit his home country in a letter addressing him as “Holy Father.” Milei had previously called Francis an “imbecile,” “a son of a bitch,” a “filthy leftist,” and “the devil’s man on earth,” but is now attempting to cultivate a friendlier relationship. In his letter, Milei acknowledged that his recent moves could “deepen inequalities,” but nevertheless views his administration as one acting in the interests of “protect[ing] our most vulnerable citizens” and believes he is following Francis’ call to have “the necessary wisdom and courage” to lead. One in four Argentines live in poverty after decades of Peronist governance.
Shane Devine is a writer covering politics, economics, and culture for Valuetainment. Follow Shane on X (Twitter).
Add comment