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Milei plans to force through radical economic reforms

  • By Al Mayadeen English
  • Source: News websites
  • 27 Dec 2023 15:46
3 Min Read

Lawmakers in Argentina who oppose the proposed changes by the president could face pressure through a plebiscite.

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  • Argentinian president, Javier Milei, undated. (AFP)
    Newly inaugurated Argentine President Javier Miler, undated. (AFP)

The newly inaugurated Argentine President, Javier Milei, is actively challenging the National Congress, and may exert influence on the legislature by conducting public votes on policy proposals, as reported by La Nacion on Wednesday.

Concerning a significant economic reform presented by his cabinet earlier this month, Milei conveyed to La Nacion, "If the Congress rejects it, I would propose a plebiscite and ask them to clarify why they oppose the will of the people."

What does the proposal include?

The proposed legislation encompasses various measures, including the imposition of a two-year state of emergency, the deregulation of the economy, the privatization of state property, and adjustments to the national healthcare system, among other changes.

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Under Argentine law, there are provisions for both binding and non-binding referendums, referred to as "public consultations." However, only the National Congress holds the authority to initiate a binding referendum. If a non-binding proposal from the executive branch is approved through a plebiscite, the parliament is obligated to consider it.

"They cannot accept that they lost, that the population chose something else," Milei said of the opposition in the National Congress. He claimed some lawmakers were "seeking bribes," but did not provide details to back up the allegation.

Milei, a libertarian economist and former Member of Parliament, emerged as an unexpected contender in Argentina's presidential election last month. He secured victory with a commitment to spur economic growth through bold public spending reductions and liberalization. Faced with soaring inflation in Argentina, Milei has pledged to tackle the issue through what he terms "shock therapy."

'Deregulation of economy'

Milei revealed a series of measures to deregulate the country's struggling economy, eliminating or changing more than 300 regulations via presidential decree, including on rent and labor practices.

In a televised speech from the presidential palace, flanked by his cabinet, he explained that "the goal is to start along the path to rebuilding the country... and start to undo the huge number of regulations that have held back and prevented economic growth."

When he took office, Milei vowed to dollarize the Argentinian economy and has been compared to former US President Donald Trump and former Brazilian President Jair Bolsonaro.

He has also been a stark advocate of a friendly foreign policy with the US and "Israel" as well as anti-BRICS sentiments, opting for involvement in the South American trade bloc. 

  • Argentina
  • Javier Milei

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