BUENOS AIRES, Argentina: Argentina’s newly elected President, Javier Milei, has introduced a comprehensive set of measures aimed at deregulating the country’s economy.
The reforms, announced via presidential decree, encompass over 300 rules, addressing issues ranging from rent and labor practices to state enterprise privatization. The move is part of Milei’s broader strategy to revitalize Argentina’s beleaguered economy, plagued by high inflation and widespread poverty.
In a televised speech from the presidential palace, President Milei emphasized the urgency of dismantling excessive regulations hindering economic growth. The Latin American nation, grappling with decades of debt and financial mismanagement, is facing inflation exceeding 160 percent year-on-year, with 40 percent of its population living in poverty.
Among the key changes outlined in Milei’s decree are the elimination of rent regulation laws and the relaxation of rules preventing state enterprise privatization. Additionally, there will be a significant overhaul of labor laws to facilitate job creation and various deregulatory measures affecting sectors such as tourism, satellite internet services, pharmaceuticals, wine production, and foreign trade.
The announcement triggered public discontent, with thousands of protesters taking to the streets near the Congress. Demonstrators expressed concerns about the impact of the measures, particularly on rent laws and labor reforms. Critics argue that the president’s use of an emergency decree to implement these changes is unusual.
The decree, published in the government gazette, now faces evaluation by a joint committee of lawmakers within ten days. Constitutional law experts suggest that the decree could only be overturned if rejected by both the lower house and the Senate. While President Milei’s Libertad Avanza party has limited representation in the legislature, his margin improves when considering support from the center-right Together for Change coalition.
President Milei, known for his libertarian and “anarcho-capitalist” views, had already initiated measures such as a significant devaluation of the Argentine peso and substantial cuts in state subsidies. These actions align with his vision of implementing “shock” therapy to address economic challenges. The president aims to reduce budget deficits, a persistent issue contributing to Argentina’s cyclical economic crises.
The recent economic reforms have been met with a mix of support and criticism. The International Monetary Fund (IMF), to which Argentina owes $44 billion, welcomed last week’s measures targeting inflation. President Milei underscored the historical challenges Argentina has faced, linking them to budget deficits and advocating for a reduction in state power.
Before Milei’s presidency, Argentina experienced hyperinflation in the late 1980s and a severe economic crisis in 2001. Milei’s electoral victory in November reflected widespread dissatisfaction with recurring economic challenges. The president has already implemented bold policies, including spending cuts and the suspension of public construction projects, signaling a commitment to reshape Argentina’s economic landscape.
