New Argentina President Promises Economic Shock Treatment
Argentina’s new president – Javier Milei – promised to deliver ‘economic shock treatment’ during his first speech since he took up office, following his surprise election victory last month.
The newly elected president was inaugurated on Sunday and said “The bottom line is that there is no alternative to austerity and there is no alternative to shock treatment” after also stating “there is no money”.
After an extraordinary rise to power, Milei left the Argentinian public in no doubt that he intends to set out on an unprecedented economic path. He has promised to undo ‘decades of decadence’ through deep spending cuts that are aimed at reducing huge public debts and driving down the country’s inflation, which currently stands at more than 140%.
Milei has risen rapidly from obscurity to the highest office on a right-wing platform which includes restricting abortion rights, liberalising gun laws and climate change denial. During his presidential campaign he also claimed he would replace the peso with the dollar and abolish Argentina’s central bank.
The new president has undoubtedly inherited an economic crisis. Whether he is able to continue down the path of the radical solutions he has proposed with minor representation in congress remains to be seen.
