Argentina’s President Javier Milei Defends Economic Plan Against Congressional Measures
In a recent address, President Javier Milei criticized the Argentine Congress for what he described as an appropriation of “noble causes” that could lead the nation to bankruptcy. This statement reinforces his commitment to a strict economic adjustment plan, especially after the opposition introduced various initiatives aimed at increasing aid for vulnerable populations.
Milei lamented the situation, stating, “We have witnessed a regrettable spectacle in Argentine politics,” referring to the new laws passed by Congress that threaten the fiscal surplus, which he claims has required significant effort from all Argentines.
Given that Milei’s party, La Libertad Avanza, lacks a majority in Parliament, the opposition has been vigorously passing measures that, according to him, undermine efforts to maintain fiscal stability and control inflation. These include increases in pensions, disability benefits, and budget allocations for universities and public hospitals.
“Using noble causes as excuses, they are enacting laws that will inevitably lead to national bankruptcy,” Milei warned, explaining that the proposed legislative packages could result in public spending equivalent to 2.5% of the GDP.
He estimated that this scenario would necessitate an additional debt of over $300 billion, raising the national debt by 70%.
Since taking office in late 2023, the ultra-liberal economist has utilized constitutional tools, such as vetoes, to block legislation that endangers his economic plan. Just this week, he vetoed increases in pensions and subsidies for disability.
Milei announced two new measures aimed at enforcing a zero-deficit policy and stabilizing monetary policy. He stated that he would ban the Treasury from financing primary spending through monetary emissions and plans to introduce legislation to penalize the passage of national budgets that incur a fiscal deficit.
In a direct challenge to Congress, he remarked, “If you want to turn back, you will have to drag me out of here.”
The ongoing conflict between Milei and the opposition is set against the backdrop of upcoming legislative elections on October 26. This election is critical for Milei, as he hopes to expand his parliamentary base to push forward deeper reforms and ease investor concerns about a potential return to center-left Peronism.
“Fortunately for all Argentines, the upcoming elections will settle this paradox once and for all,” Milei declared in a campaign-like tone. “You will choose which force prevails: the unstoppable momentum for change or the immovable object.”
