Amid a severe economic crisis, ultra-liberal economist Javier Milei was sworn in as Argentine president before parliament in Buenos Aires on Sunday. In his inaugural speech, the 53-year-old mobilized the population for an economic boost. There is no alternative to shock therapy in the field of financial policy, says Milei.
The previous government left empty treasuries and sent the country on a path to hyperinflation. The budget needs to be adjusted. “Today a new era begins. Today the reconstruction of Argentina begins,” Milei said in his inaugural speech on the steps of Congress. “There is no alternative to the austerity program, there is no alternative to shock therapy. I’ll say it again: we have no money.’
Spanish King Felipe and Orbán at the ceremony
Spanish King Felipe VI, Chilean President Gabriel Boric, Uruguayan Head of State Luis Lacalle Pou, Paraguayan President Santiago Peña and Hungarian Prime Minister Viktor Orban, among others, came to the Argentine capital for the ceremony. Sunday also marked forty years since Argentina returned to democracy after the military dictatorship. “Long live freedom, damn it,” Milei shouted to his cheering supporters at the end of the speech.
Zelensky’s visit causes a stir
Ukrainian President Volodymyr Zelensky’s visit to Buenos Aires caused a stir. It was the first time that the head of government traveled to South America since the start of the Russian war of aggression against his country. Unlike the left-wing previous government in Buenos Aires, Milei is considered a staunch supporter of Ukraine. The two spoke on the phone immediately after his election victory three weeks ago. “I thanked him for his clear position. No balance between good and evil. Just clear support for Ukraine. This is very well noticed and appreciated by Ukrainians,” Zelensky explained at the time.
With his trip to Argentina, Zelenskyj probably wants to secure the support of countries in the so-called Global South. Many of them find it difficult to support the hard line of Western industrialized countries towards Russia. Brazilian President Luiz Inácio Lula da Silva has criticized Russia’s attack on Ukraine, but has refrained from making clear statements to Moscow. Recently, he has repeatedly called for an international mediation initiative to resolve the war in Ukraine, but has not yet made any concrete proposals.
Ukraine relies on support from South America
At Milei’s inauguration, Zelensky had the opportunity to meet several conservative leaders from the region who also support Ukraine. They include the head of state of Uruguay, Lacalle Pou, the Paraguayan president Peña and the head of state of Ecuador, Daniel Noboa. “I hope to see as many Latin American countries as possible at the next talks on the peace formula in Switzerland in January 2024,” Zelensky wrote on Supporting the struggle for freedom and democracy is very important to us.
Orban had already personally congratulated Milei on his election victory in Buenos Aires on Saturday evening and held bilateral negotiations. It was about the common, more effective struggle against the international left and about the possibilities for developing Hungarian-Argentine relations. Orban also met Catholic MPs and secretaries of state in Buenos Aires, as well as former Brazilian President Jair Bolsonaro.
New currency US dollar in Argentina?
Milei won the elections in Argentina with eccentric behavior and radical demands for an economic and political turnaround. He announced that he would introduce the US dollar as legal tender, abolish the central bank and many ministries, and drastically cut social spending. He has now softened his tone considerably and postponed or toned down many of his original plans. He also brought into his cabinet a number of experienced politicians, whom he had previously vilified as members of the ‘caste’ he despised. Since he does not have a majority in parliament, Milei must form alliances anyway.
Immediately after taking office, Milei wants to introduce a comprehensive legislative package in parliament that is intended to fundamentally restructure the Argentine state. The number of ministries and authorities must be significantly reduced, public enterprises must be privatized and bureaucracy must be significantly reduced to attract investment. “I don’t know how many laws we will repeal, but it will be a lot,” said new Foreign Minister Diana Mondino.
The introduction of the US dollar was one of the most important promises in the election campaign, but now the new head of state has put the plan aside for the time being. In recent weeks, he has barely mentioned his former passion project. “This is only realistic, because the country simply does not have enough foreign exchange to implement dollarization properly,” says Argentine economist Eduardo Levy Yeyati.
40 percent live below the poverty line
Milei takes over Argentina in a serious economic crisis. The inflation rate is over 140 percent and about 40 percent of people in the once wealthy country live below the poverty line. South America’s second-largest economy suffers from a bloated state apparatus, low industrial productivity and a large shadow economy that deprives the state of much tax revenue. The national currency, the peso, continues to lose value against the US dollar and the mountain of debt is growing.
Source: Krone
I am Wallace Jones, an experienced journalist. I specialize in writing for the world section of Today Times Live. With over a decade of experience, I have developed an eye for detail when it comes to reporting on local and global stories. My passion lies in uncovering the truth through my investigative skills and creating thought-provoking content that resonates with readers worldwide.
