BUENOS AIRES, Dec 10 (Reuters) – Argentina’s liberal economist Javier Millay was sworn in as president on Sunday, seeking a radical solution to the country’s worst economic crisis in decades and inflation rapidly heading toward 200%. This marked a major change in direction for the South American country. .
Mr Millay, a 53-year-old former television critic who made a name for himself with expletive-filled rants against rival countries, China and the Pope, spoke at the overcrowded parliament, with a crowd gathered outside, to resign from Peronist Alberto.・Received the presidential sash from Mr. Fernandez.
The wild-haired outsider is a big gamble for Argentina. His shock-therapy economic plan of deep spending cuts has been well-received by investors and could stabilize an economy in trouble, but it will leave more people in poverty, with more than two-fifths already living in poverty. There is a danger of being pushed into .
But the voters who led Millais to victory in a November runoff against the ruling Peronist coalition candidates are willing to roll the dice on his sometimes radical ideas, including closing the central bank and dollarization. said shaking.
“He is our last hope,” said Marcelo Altamira, a 72-year-old doctor, blaming the “incompetent and incompetent” government for years of economic boom and economic crisis. The outgoing Peronist government had “destroyed the country,” he said.
The challenges are enormous. Argentina’s net foreign exchange reserves are estimated at a $10 billion deficit, annual inflation is rising at 143%, an economic recession is on the horizon, and capital controls have distorted the exchange rate.
For decades, Argentina has experienced boom-and-bust cycles, printing money to finance regular budget deficits, causing inflation and weakening the peso. The situation has worsened in recent years, with reserves dwindling after a major drought hit key cash crops soybean and corn earlier this year.
Major grain exporters will have to reconsider their harsh $44 billion loan program with the International Monetary Fund (IMF), while Millais will have to improve ties with key trading partners China and Brazil, which he criticized during the campaign. You need to navigate relationships.
Milay will replace center-left President Fernández, who resigned in unpopularity, but his liberal coalition has a small bloc in parliament and will need to negotiate with rivals. He allied himself with major conservative groups.
It’s already having an impact. He has softened his tone in recent weeks, filling his first cabinet with mainstream conservatives rather than ideological liberal allies and putting more radical ideas such as dollarization on the back burner.
That’s helping to energize markets and reassure voters.
“I think he’ll do a good job,” said Laura Soto, a 35-year-old restaurant worker in Buenos Aires. “For legal and parliamentary reasons, he’s going to have to focus on being more consistent in the end.” Ta.
He said more radical social ideas he spoke of during the campaign, such as loosening gun laws and restarting debate on abortion, which was legalized in Argentina three years ago, are also unlikely to materialize.
“Change was needed.”
To resolve the economic turmoil, Millais elected mainstream conservative Luis Caputo to head the economy ministry and installed Caputo’s close ally Santiago Bausiri as central bank governor.
Milley is expected to unveil her vision in a speech on Sunday, with a more detailed economic plan likely on Tuesday or Wednesday, a source on her team told Reuters.
Guests at the ceremony included Ukrainian President Volodymyr Zelenskiy, Hungarian Prime Minister Viktor Orbán, and a U.S. delegation.
Also in attendance were right-wing former Brazilian leader Jair Bolsonaro and Uruguayan conservative leader Luis Lacalle Pou. Chile’s leftist President Gabriel Bolić also attended, but leftists Brazil’s Luiz Inacio Lula da Silva and Mexico’s Andrés Manuel López Obrador were some of the notable absentees.
Mr Mailei is expected to speak to supporters outside parliament rather than to MPs in the parliament, as is customary, in recognition of the public support that has been the driving force behind his rise.
Vilma Bonino, 73, a retiree, said: “He gives something to the people, not to politicians. Now we have to wait and see what happens.”
In a sign of trouble ahead, state energy company YPF raised gas pump prices by an average of 25% this week, with analysts and markets predicting a sharp devaluation of the overvalued peso currency soon after Milay took office. There is.
“The current situation is not very good and I think a change was needed,” Delfina Ortiz, a 22-year-old student, said as she posed for a photo in front of Congress.
“As with any change, obviously there’s a lot of hope and expectation for what’s to come. Hopefully.”
Reporting by Nicolas Misculin and Miguel Lo Bianco. Additional reporting by Jorge Ohtaola, Walter Bianci, and Candeleria Grimberg.Editing: Adam Jordan, Sri Navaratnam, Margherita Choi
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