2023-12-13 07:11:35
In Argentina, Javier Milei launched his “chainsaw” plan. His Minister of the Economy announced the first measures of the “austerity shock” promised by the new president. Devaluation, reduction in the number of ministries, end of energy and transport subsidies: the battery of measures presented on Tuesday December 12 should make it possible to reduce public spending by 5% of GDP.
Published on: 13/12/2023 – 06:11
2 mn
With our correspondent in Buenos Aires, Théo Conscience
« There is no more money. » The Argentine Minister of the Economy announced on December 12 a “ emergency economic plan » intended to eliminate the fiscal deficit and avoid hyperinflation which, according to him, threatens the country. “ Argentina has had a fiscal deficit for 113 of the last 123 years, he said. Politically, we have always been addicted to the deficit. And that’s why we experience repeated crises. »
To remedy this, the Minister of the Economy announced that 9 of the 18 existing ministries would be abolished, that transfers of discretionary funds from the federal government to the provinces would be reduced to a minimum, and that no new public infrastructure work would be carried out. would be approved.
Read also Just inaugurated president, Javier Milei promises Argentina a “shock” of austerity
Increase in family allowances and food aid
« Infrastructure works have always been one of the main sources of corruption in the state, and this will end with us. Argentina’s infrastructure will be built by the private sector, because the state has neither the money nor the financing capacity to do so. »
Luis Caputo also announced a 100% devaluation of the national currency, and the elimination of energy and transport subsidies. In order to mitigate the effect of these measures on the most vulnerable, he concluded by announcing an increase in family allowances and food aid.
Also readArgentina: Milei invested as president, the country in crisis expects ultraliberal shock therapy
#Mileis #austerity #shock #measures #announced