News summary
- The Argentine president's campaign promise was to cut spending.
- Milei will not renew contracts signed less than a year ago.
- The target is “Gnocchi employees” who are paid but don’t work.
- Thousands of contracts will be subject to review over the next 90 days.
Javier Mieli implements public spending cuts and thousands of public servants lose their jobs. Montage Pixabay
Argentine President Javier Milei is implementing what he promised during the election campaign: to cut government spending.
One of the measures decided is the reduction of public employees. It is estimated that between 5,000 and 7,000 people with federal jobs will lose their jobs at the beginning of 2024.
Milei's management is targeting the socalled “gnocchi employees,” a popular expression that refers to those who do not work but receive a salary every 29th, the same date that the dish of Italian origin is served to bring good luck and prosperity.
The Argentine newspaper La Nación published that contracts signed less than a year ago and ending on December 31 will not be renewed.
According to government spokesman Manuel Adorni, over the next 90 days it will be examined which positions are unnecessary and which will be retained. It is estimated that more than 45,000 contracts are being analyzed.
Milei eliminated nine of the 18 ministries and reduced the number of secretaries from 106 to 54 as soon as he took over the presidential sash from Alberto Fernández.
Indec (Argentine Statistics Institute) published a report in October this year that found Argentina has more than 338,000 public employees. With a leaner government, more federal employees are still expected to lose their jobs.
Megadecree
Last Wednesday (20), the Argentine President signed a megadecree that amends or repeals more than 300 laws, alters labor regimes, affects rents and facilitates the privatization process of stateowned companies such as Aerolíneas Argentinas and Banco de la Argentine Nation and YPF.
Milei states that the package of measures focuses on the deregulation of the economy, in a “liberating shock” that would be “friendly to the competence, the markets, the good Argentines”.
Milei's goal is to reduce Argentina's treasury to achieve an economy equivalent to 5% of GDP (Gross Domestic Product).
Milei's stroke sparked a series of protests on the streets of the country's main cities, and unions are promising strikes and strikes to put pressure on the Casa Rosada.