Milei should announce package with economic measures in Argentina – News

2023-12-11 04:00:02

One day after taking office, the president of Argentina, Javier Milei, is expected to announce economic measures this Monday (11). He will lead the first cabinet meeting at Casa Rosada, the official residence of the Argentine government, with his nine ministers.

In his inauguration speech, Milei highlighted the new government’s strategies to get the country out of the crisis, but highlighted that the situation will not improve immediately.

“There is no money, there is no alternative to adjustment, there is no alternative to shock,” Milei said in front of a blue and white crowd. “In the short term the situation will worsen, but then we will see the fruits of our efforts,” she added.

According to the Argentine newspaper Clarín, the measures are related to spending cuts, increased taxes on imports, privatizations and dollar devaluations.

The package establishes “immediate” fiscal actions that do not require approval from the Argentine Congress.

Milei’s strategy aims to provide some oxygen to the Argentine economy in the midst of a strong inflation problem, which reached 142.7% in annual variation in October. According to the new president, in a recent interview, this process will take between 18 and 24 months.

The new Minister of Economy, Luis Caputo, has already given signs that the management’s objective is to reach zero deficit in 2024.

Find out what the main package measures are

• prohibition of the Central Bank of Argentina from issuing and financing the Treasury;

• gradual removal of tariff subsidies between January and April;

• the Milei government will not carry out public works, except those that have external financing;

• increase in taxes on imports;

• apply an extension to the 2023 budget to freeze spending;

• suspension of non-refundable contributions to Argentine states;

• freeze budgetary benefits for private companies;

• financing for universities will only be made in 2023 amounts and values;

• release of fuel and prepaid prices;

• public salaries adapted to the new frozen budget standard;

• transfer of debts from Leliqs (securities issued by the Central Bank of Argentina) to the National Treasury and improvement of the balance of the Central Bank of Argentina.

• public companies will be public limited companies to facilitate their sale;

• devaluation and fixation of the commercial dollar at around 700 and 800 pesos.

First decree

Milei signed the first decree of his administration, after taking office this Sunday (10). This is the text that changes the number of ministries from the current 18 to nine portfolios that will make up his administration.

Until Friday (8), there would only be eight portfolios, but the new Argentine president went back and decided to maintain the Ministry of Health; the previous idea was to transform it into a secretariat.

Meet those chosen to be minister in Javier Milei’s government