2024-02-10 22:42:51
Javier MileyThis Saturday, February 10, he celebrates two months at the head of the National Executive Branch. His election as president, with the support of 56% of the votes in the November 19 runoff, was received with hope and expectations of change by a population that faces overwhelming economic and social challenges.
Upon assuming office, Milei found a country affected by uncontrolled inflation, structural economic imbalances and a series of problems inherited from previous administrations.
This scenario of crisis and multiple challenges tested the leadership and management capacity of the new president, who has limited political experience and a fragile government structure, represented by only 38 deputies and 7 senators in Congress, in addition to lacking mayors and governors in their political coalition. Faced with these challenges, Milei’s first management was marked by controversial decisions, drastic economic adjustments and political tensions with various actors, both nationally and internationally.
The most notable events of Milei’s first two months as president
Cabinet formation and first resignations:
The formation of Javier Milei’s cabinet was one of the first steps after his assumption as president. However, this process was marked by a series of changes and rumors that generated uncertainty around the stability of the team. The departure of Guillermo Ferraro as Infrastructure Minister was one of the first major moves, followed by calls for other key officials, such as Osvaldo Giordano from ANSeS and Flavia Royón in charge of Mining, after the failed session of the omnibus law and the fight with the provinces.
Peso devaluation and economic challenges:
On Tuesday, December 12, the Minister of Economy, Luis Caputo, issued his first official message in office, announcing a 54% devaluation of the peso, which led the official dollar to reach $800. In that same statement, he anticipated that the peg crawling rate would remain at 2% per month, a measure that remains in force to date. However, the economy faces significant challenges, with inflation at 25.5% monthly in December and projections around 20% for January. This generated uncertainty among private consulting firms regarding the apparent intention of the ruling party to avoid another abrupt jump in the exchange rate in the coming months, especially during March or April, periods in which the liquidation of dollars from the heavy harvest of soybeans, the main Argentine export complex.
Agreement with the IMF and international relations:
The agreement with the IMF was one of the first milestones in the international relations of the Milei government. After intense negotiations, an agreement was reached that allowed the disbursement of funds by the international organization, which contributed to relieving pressure on international reserves and stabilizing the exchange rate. However, it also generated criticism and concerns from the opposition, who questioned the conditions imposed by the IMF and its impact on the Argentine economy in the long term.
Mega DNU and conflicts with the CGT:
The announcement of the first package of measures through a Decree of Necessity and Urgency (DNU) by Milei generated tensions with the General Confederation of Labor (CGT), the main union group in the country. The labor deregulation proposed in the DNU provoked a strong reaction from the CGT, which appealed to Justice and called for the first national strike of the libertarian administration.
Senators from Unión por la Patria are pressing for the vice president, Victoria Villaruel, to call a session to discuss the DNU.
Omnibus Law: first legislative setback
On December 28, President Javier Milei sent an ambitious bill to the Chamber of Deputies that contained 664 articles, covering reforms in various institutional and economic areas of the country. Over three days of intense debate, the project was subject to negotiations and modifications, reducing the number of articles by almost half as a result of conversations with opposition blocs. However, the following Tuesday, during the vote in particular on the remaining 386 articles, the lack of agreements between La Libertad Avanza and the opposition led the ruling party to adjourn the session. As a result, the project was left unapproved and, if it wants to resume it, the ruling party will have to start again from scratch. This significant political setback exhibited the difficulties that Milei’s government faces in negotiating in Congress, evidencing the fragility of its parliamentary base and the complexity of the political scenario in which his administration operates.
Adjustment in the provinces and international tour:
The announcement of an adjustment in the provinces by the Minister of Economy, Luis Caputo, generated a strong reaction from the governors. This adjustment translated into cuts in areas such as public works and transfers to the provinces, raising concerns about the impact on regional investment and development. Furthermore, Milei’s trip to Israel and Rome represents an attempt to strengthen the country’s diplomatic and commercial relations in a complex global context, although it also generated controversies, especially regarding the transfer of the Argentine embassy to Jerusalem and investments in the lithium sector.
