Bangkok Post

Milei says no stopping his reform plans

>> BUENOS AIRES: Argentina’s libertaria­n President Javier Milei, in his first policy speech to parliament Friday, said he would push his package of sweeping economic reforms whether or not legislator­s back it.

“We are going to change the country for good... with or without the support of political leaders, with all the legal resources of the executive,” Mr Milei told lawmakers, who have stalled his project of deregulati­on and budget cuts.

“If you look for conflict, you will have conflict,” he told them.

Mr Milei offered a recap of his first 82 days in office, in which he devalued the peso more than 50%, slashed state subsidies for fuel and transport, cut tens of thousands of public service jobs, and scrapped hundreds of rules in his bid to deregulate the economy.

“I ask for patience and trust,” Mr Milei said. “It will be some time before we can perceive the fruit of the economic reorganisa­tion and the reforms we are implementi­ng.”

Many of his planned reforms face challenges in court, with more than 60 lawsuits under way by labor unions, business chambers and NGOs, while Argentina has seen massive protests by citizens who fear Mr Milei’s plans will leave them poorer.

“We have not yet seen all the effects of the disaster we inherited, but we are convinced that we are on the right path, because for the first time in history we are attacking the problem by its cause: the fiscal deficit, and not by its symptoms,” Mr Milei said.

In recent weeks, Mr Milei has reached out to influentia­l provincial governors, party leaders and former presidents to forge a “new social contract” for the country, based on ten principles, including a “non-negotiable” balanced budget, “inviolable” private property, and public spending reduced to the “historic” level of 25% of GDP.

Faced with parliament­ary reticence, Mr Milei scrapped almost half of the initial 664 articles in the sweeping deregulato­ry measure issued after he took office, then withdrew it altogether.

But the president has vowed to return his bill to parliament. And he has threatened to pass his reforms by presidenti­al decree if lawmakers do not fall in line.

Argentina is grappling with severe economic struggles after decades of mismanagem­ent that has driven poverty levels to nearly 60%.