Argentina’s new president, Javier Milei, jokingly announced shock therapy for his country in his inaugural speech on Monday. The government wants to present its long-awaited plans for an economic boost on Tuesday.
“The logic of spending more than you have is over,” presidential spokesman Manuel Adorni said. “Argentina is in a state of emergency. Inflation is the central issue that worries people.” Milei had warned of a “bomb” in the form of a $100 billion national debt. The budget needs to be adjusted. “There is no money.”
In the future there will be only nine ministries instead of eighteen
A radical reduction in the number of ministries is necessary “to rationalize the actions of the nation state and make them more efficient,” the report said. Milei signed a corresponding decree on Sunday after being sworn in. Accordingly, the number of ministries in the South American country will drop from 18 to nine.
New super ministry called ‘Human Capital’
According to the government, the new Cabinet now includes the departments of economy, foreign policy, security, justice, health care, domestic policy, defense, infrastructure and human capital. As a super-ministry, the latter combines the areas of responsibility of the former ministries for education, culture, labor and social development. The former Ministry of Women, Gender and Diversity is now also subordinate to the new Ministry of Human Capital.
The Ministry of Justice and Human Rights will now only be called the Ministry of Justice – “a clear symbolic-political message that remains faithful to the denial discourse about the crimes committed by the dictatorship,” as the newspaper “Page 12” analyzed. Sunday marked forty years since Argentina returned to democracy after the military dictatorship.
Milei’s tone became considerably more moderate after the election campaign
The ultra-liberal economist Milei won the elections 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.
Inflation of almost 200 percent is expected by the end of the year
Argentina has been struggling with a serious economic crisis for years. The inflation rate recently stood at over 140 percent. Analysts see this rising to 185 percent by the end of the year. Gross domestic product is expected to shrink by two percent this year. This is due to the drought, which has reduced the corn and soybean harvest by half. Together with triple-digit inflation, this is likely to lead to an increase in poverty. Two-fifths of Argentinians already live below the poverty line.
Source: Krone
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