Javier Milei, a liberal economist and political figure, has recently won the presidency of Argentina with a substantial majority of 55.7% of votes. This victory came after a heated election against incumbent Economy Minister Sergio Massa, who was unable to attract enough support due to concerns over Milei's libertarian approach.
Milei, backed by the prominent Propuesta Republicana party led by former President Mauricio Macri, promised radical changes to the Argentine state model. His proposed "package motosierra" involves reducing the number of ministries from 18 to 8, privatizing state-owned companies like oil company YPF, and decreasing taxes. Milei also plans to close down the central bank and dollarize the economy, actions which he believes will stabilize the economy and prevent hyperinflation.
Upon taking office on December 10, Milei faces the immediate challenge of addressing Argentina's economic crisis, including high inflation rates and poverty levels. He intends to implement a fiscal adjustment of up to 15% of the GDP. Milei has already begun to outline his cabinet members, but further agreements with the Propuesta Republicana and other provincial sectors are yet to be formalized.
Milei's political stance includes liberal economic policies and controversial stances on issues such as abortion, climate change, gender politics, and LGBTQ+ rights. His views aligning with far-right figures internationally have raised concerns about potential democratic risks and international relations, particularly with China, a key ally during the previous Peronist government. Milei has stated that he will not join the BRICS bloc, previously targeted by the current government.
The main concern for the new administration will be the economy, as the significant increase in voter support from the second round of elections seeks short-term solutions. Milei is aware that his economic reforms may cause social unrest, yet he remains committed to explaining his approach and convincing the population that it is necessary for Argentina's survival and global power status. The potential for resistance from opposing sectors could be a challenge, especially given the Peronist party's intent to exploit any setbacks to weaken Milei's position.
