Javier Milei: “There is no money. There is no alternative to adjustment, to shock” in Argentina

Javier Milei, a 53-year-old ultra-liberal economist, warned Argentines that it will be necessary to make a tough fiscal adjustment that will involve sacrifices but will ultimately bear fruit, upon assuming the presidency this Sunday. “There is no money, there is no alternative to adjustment, there is no alternative to shock,” Milei exclaimed before thousands of people who gathered to listen to him in the square in front of Congress. “In the short term the situation will get worse, but then we will see the fruits of our efforts,” he added.

Alien to traditional politics, which he disparagingly refers to as “the caste,” The president chose to make his speech outside the Parliament premises, before a crowd of followers and guests. Among them were several leaders such as the Chilean Gabriel Boric and the paraguayan Santiago Penathe ukrainian Volodymyr Zelensky and the hungarian Viktor Orbanin addition to the king of Spain, Philip VI.

LOOK: LIVE Javier Milei is sworn in as the new president of Argentina on a historic day for the country

At his swearing-in, he followed protocol and He swore “by God and country on these holy gospels”. Then He received the sash and the baton from the outgoing president, Alberto Fernández. At his side, the vice president, Victoria Villarrueltook the same oath.

“Today is a party that we all deserve, we have to leave corruption behind, this is over. I think that from now on we are going to evolve. I don’t think there is a worse government than there was, if this works, 50% is enough. I will give it as much time as necessary,” Fabián Armilla, a 60-year-old judicial employee, told AFP.

“Let’s make Argentina great”

At the end of his speech, Milei got into a black convertible along with her sister Karina to travel the two kilometers that separate Congress from the Casa Rosada, headquarters of the presidency, where he will swear in his ministers.

He did some sections on foot, and he stopped at times to greet people and also to pet a dog.

Then, the president He went out to the balcony of the Casa Rosada to greet those who were in the Plaza de Mayo. “Hello everyone, I’m the lion,” he sang exultantly before launching his characteristic shout: “Long live freedom, damn it!”

“Today we good Argentines have decreed the end of the communist night and the rebirth of prosperous and liberal Argentina”said.

“Let’s stand up and make Argentina great again,” he cried in another of his usual slogans.

Forced to reconcile

Third economy in Latin America, Argentina registers an annualized inflation of more than 140% and a poverty rate greater than 40%. To face this crisis, Milei proposes drastic measures to cut public spending, reduce the State and liberalize in a country accustomed for years to subsidies and fiscal deficits.

“Today a new era begins in Argentina, an era of peace and prosperity, an era of growth and development, an era of freedom and progress,” Milei assured in his speech. “No government has received a worse inheritance than what we are receiving,” he added.

Milei has said that the fiscal adjustment will be equivalent to 5% of the Gross Domestic Product. The number of ministries will also decrease, from 18 to only nine.

“I think it will be difficult the first few years, he already anticipated it and because of the situation in the country, but I have a lot of faith in him,” commented Federica Diggiano, a 20-year-old student outside Parliament.

Freedom AdvancesMilei’s far-right party, is only the third minority in Congress, which forces it to reconcile many of its reforms with other political forces.

“There is an attempt to expand the coalition and expand the government’s legislative support a little more. But all this has a price. If he negotiates, then he will not be so anti-caste,” political scientist Diego Reynoso told AFP.

“Fireproof”

The president will, however, have the freedom to decide on a devaluation of the peso and some spending reduction measures. Dollarization, a central theme of his campaign, was put on hold pending the first results of his economic plan.

“The first litmus test for the president will be to decide if he is actually going to stop the issuance (of money) or if he adopts a more pragmatic stance and leaves the goal of non-issuance for later,” economist Víctor Beker told AFP. , from the University of Belgrano.

After warning that there are probably stagflation During the early days of his government, Milei assured that he would maintain social assistance for the most needy.

“There will be this inflation, it is true, but it is not different from what has happened in the last 12 years. There will be light at the end of the road,” Milei also said.