- Written by Mariko Aoi
- Business reporter
Watch: Argentines protest Miley’s austerity plans
Thousands of people took to the streets of Buenos Aires in the first major protest against the economic shock policies of the new Argentine government.
He also signed the economic reform decree that will end restrictions on exports.
The march was led by groups representing the unemployed. Police were deployed in large numbers to prevent demonstrators from blocking roads.
President Miley, who took office less than two weeks ago, has promised to crack down on any groups that try to thwart his plans through destructive protests.
The government said on Monday that people who blocked streets could lose their right to state benefits.
“It is a peaceful mobilization,” Eduardo Piliponi, who leads the left-wing Polo Obrero group that first called for the demonstration, said in an interview with local radio.
“We don’t want any kind of confrontation. We don’t want any kind of clash.”
In a speech broadcast on radio and television, President Milley detailed some 300 measures, representing what he described as just the first step toward reconstruction.
They include the privatization of state enterprises and the liberalization of mining and other industries. The president said that he would repeal the real estate rental regulation law.
He explained what he hopes these measures will achieve: “The goal is to start on the path to rebuilding our country, restoring freedom and independence to individuals and beginning to dismantle a wide range of systems that have hindered and halted economic growth in our country.”
Javier Miley in Buenos Aires earlier this month
Last week, the government weakened the value of its currency by more than 50% against the US dollar.
The exchange rate was lowered to 800 pesos to the US dollar, from about 391 pesos.
Since 2019, Argentina has kept its currency artificially strong by strictly controlling the movement of the currency.
This helped drive demand for the US dollar in the unofficial currency market, which saw the peso trading at a rate well below the official level.
Economy Minister Luis Caputo also announced major cuts in public spending, including cutting fuel and transportation subsidies and freezing spending on some major government contracts and advertising.
Economy Minister Luis Caputo (center) pictured earlier this month after meeting with the new president
Argentina is facing a significant rise in inflation, with prices rising by about 150% over the past year. It also suffers from low cash reserves and high government debt, while 40% of the population lives below the poverty line.
The International Monetary Fund – to which Argentina owes $44 billion – described the measures as “bold” and said they would help create the environment for private sector growth.