Argentina’s Javier Milei, in his first speech as newly-elected president, promised to implement bold measures to revive the country from its worst economic crisis in two decades. However, with limited representation in Congress, he will have to negotiate with conservative allies and a skeptical Peronist opposition to push forward his agenda.
The economist and political novice scored a historic win in the presidential runoff, breaking through the dominance of the main two political coalitions amid soaring inflation and rising poverty.
Milei has pledged a “chainsaw” plan for the economy, including shutting the central bank, changing the local currency to the dollar, reducing the size of government, and privatizing state firms like energy giant YPF.
Despite his ambitious plans, Milei faces pushback and will have a weak position in Congress, with his Liberty Advances bloc holding only a small number of seats in both the Senate and the lower Chamber of Deputies.
Local political analyst Raul Timerman stated, “Milei will need a realignment of alliances to push through laws in Congress. If not, he will not be able to govern through the legislature.” Additionally, Milei’s coalition lacks regional governors or mayors, crucial in the federal system where the provinces hold significant power.
To begin his government, Milei will have to rely on political allies, engage in dialogue across the political spectrum, and possibly implement emergency executive orders in some cases. However, most law changes will require majority support in Congress, posing a significant challenge for Milei.
Milei’s proposed changes, including overhauling the health, education, and pension systems, are unlikely to gain support from the defeated Peronist coalition, which will retain the largest minority in both chambers of Congress. However, Milei has formed an alliance with key members of the conservative bloc, Together for Change, including former President Mauricio Macri and former candidate Patricia Bullrich.
Analyst Mariel Fornoni from consultancy Management & Fit stated, “To usher in his government he has a huge challenge. The first thing I think is that he’ll need to understand the rules of the political game. And that is something to which he is not accustomed.”
In conclusion, Milei’s success in implementing his economic reforms will depend on his ability to navigate political alliances and secure support in Congress for his agenda, amid widespread skepticism and pushback from opposition parties.
