Argentina President Javier Milei intends to reduce the size of the government by placing off 70,000 workers in the coming months, showcasing his commitment to cutting down the bloated state.
Milei proudly said at a recent event that he has halted public projects, reduced funding to provincial governments, and put an end to over 200,000 social welfare programs, which he deemed as being tainted by corruption. It's apparent that he is determined to achieve a fiscal balance by the end of this year, no matter what it takes.
Argentine President Faces Opposition Over Inflation
The Former President of Argentina, Cristina Fernández, declared her rejection of the country's decision to reduce employment opportunities, which has resulted in an annual inflation rate of 276 percent and an increase of salaries and pensions. In response to this, the state workers union ATE has gone on strike across the country.
Across the country, people are going on strike in response to the issue. According to polls, Argentines are more optimistic about the future of the economy, and there has been an improvement in the level of belief that the general public has in the administration. This is the situation despite having been proven that austerity measures have been implemented.
Milei also brought attention to the Central Bank's progress in the direction of achieving net neutral reserves and its plan to intensify reforms following the legislative elections in 2025.
He also attacked the Senate for rejecting his emergency order, calling it "marvelous" and referred to legislators as "delinquents." He said that he was upset with the Senate's decision.
As a result of employment losses, which only account for a small portion of the 3.5 million people employed in the public sector in Argentina, Fernández is running into opposition from influential labor organizations. Her strong popularity ratings are put in jeopardy by this decision, as on March 26 a strike began by one of the organizations, according to Buenos Aires Times.
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State Workers Union Protests as Argentine President
In disagreement to Milei's intentions, the ATE, which is the state workers union, launched a nationwide walkout. There has been an improvement in common confidence in the administration, despite the introduction of austerity measures. Milei identified polls that showed an increasing level of optimism among Argentines regarding the future of the economy.
Besides defending the 2% monthly crawling peg system implemented by the central bank, Rodrigo Milei, the President of Argentina, has backed peso futures contracts. He also emphasized the nation's path toward net neutral reserves, noting that as of December, debt obligations exceeded cash on hand by $11.5 billion.
Following the celebrations, he made an offer to deepen economic changes, and there are currently over 3,000 reforms in the works. Additionally, he commended the Senate's decision to reject his emergency decree, referred to legislators as "delinquents," and forecasted that the economy will rapidly rebound in a V-shaped pattern in the not too distant future, Mint reported.
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