12/10/2023 9:33 pm (current 12/10/2023 9:40 pm)
Many people attended the inauguration of Mileis ©APA/AFP
In the midst of a serious economic crisis, ultraliberal economist Javier Milei took office as Argentine president. The 53-year-old was sworn in on Sunday in front of parliament in Buenos Aires. The outgoing head of state, Alberto Fernández, presented him with the presidential sash. In his inaugural speech on Sunday, the 53-year-old left the population wanting an economic boost. There is no alternative to financial policy shock therapy, says Milei.
The previous government left the coffers empty and put the country on the path to hyperinflation. The budget must be adjusted. “Today a new era begins. Today the reconstruction of Argentina begins”, said Milei in his inaugural speech on the steps of the congress. “There is no alternative to the austerity program, there is no alternative to shock therapy. I repeat: we have no money.”
Among others, the King of Spain, Felipe VI, the President of Chile, Gabriel Boric, the head of state of Uruguay, Luis Lacalle Pou, the President of Paraguay, Santiago Peña, and the Hungarian Prime Minister, Viktor Orbán, came to the Argentine capital for the ceremony. Sunday also marked the 40th anniversary of Argentina's return to democracy after military dictatorship. “Long live freedom, damn it,” Milei shouted to his supporters at the end of the speech.
Ukrainian President Volodymyr Zelensky's visit to Buenos Aires caused controversy. It was the first time that the head of government traveled to South America since the beginning of Russia's war of aggression against his country. In contrast to the previous left-wing government in Buenos Aires, Milei is considered a determined defender of Ukraine. The two spoke on the phone immediately after his election victory three weeks ago. “I thanked him for his clear position. Without weighing between good and evil. Just clear support for Ukraine. This is very well noticed and appreciated by Ukrainians”, Zelenskyy wrote at the time on platform X, formerly Twitter.
With his trip to Argentina, it is likely that Zelenskyy wants to secure the support of countries in the so-called Global South. Many of them have difficulty supporting the hard line adopted by Western industrial nations towards Russia. Brazilian President Luiz Inácio Lula da Silva criticized the Russian attack on Ukraine, but avoided making clear statements to Moscow. More recently, he has repeatedly advocated an international mediation initiative to resolve the war in Ukraine, but has yet to put forward any concrete proposals.
At Milei's inauguration, Zelensky had the opportunity to meet several conservative leaders from the region who also support Ukraine. These include Uruguay's head of state, Lacalle Pou, Paraguayan president Peña, and Ecuador's head of state, Daniel Noboa. “I hope to see as many Latin American countries as possible at the next peace formula negotiations in Switzerland in January 2024,” Zelensky wrote in Supporting the fight for freedom and democracy is very important for us.
Orbán had already personally congratulated Milei on her electoral victory in Buenos Aires on Saturday night and conducted bilateral negotiations. According to media reports, it was about a joint and more effective fight against the international left and the possibilities of developing Hungarian-Argentine relations. Orbán also met with Catholic deputies and secretaries of state, as well as former Brazilian president Jair Bolsonaro, in Buenos Aires.
Milei won the elections in Argentina with eccentric behavior and radical demands for an economic and political turnaround. She announced that she would introduce the US dollar as legal tender, abolish the central bank and many ministries and drastically cut social spending. He has now significantly moderated his tone and postponed or watered down many of her original plans. He also brought into his cabinet several experienced politicians whom he had previously vilified as members of the “caste” he despised. As he does not have a majority in parliament, Milei will have to form alliances anyway.
Immediately after taking office, Milei wants to introduce into parliament an extensive legislative package that aims to fundamentally restructure the Argentine State. This includes a significant reduction in the number of ministries and authorities, the privatization of public companies and a significant reduction in bureaucracy to facilitate investments. “I don’t know how many laws we will repeal, but it will be a lot,” said the new Secretary of State, Diana Mondino.
Apparently, Milei shelved one of his most important promises during the election campaign, the introduction of the US dollar as legal tender. In recent weeks he has barely mentioned his former passion project. “This is only realistic, because the country simply does not have enough foreign exchange to properly implement dollarization,” said Argentine economist Eduardo Levy Yeyati.
The new president takes over Argentina in the midst of a serious economic crisis. The inflation rate is over 140% and around 40% of people in the once-rich country live below the poverty line. South America's second largest economy suffers from a bloated state apparatus, low industrial productivity and a large parallel economy that deprives the State of much tax revenue. The national currency, the peso, continues to lose value against the US dollar and the mountain of debt is constantly growing.