Argentina’s front-runner for the presidency, Javier Milei, and his advisers have stated that if he is elected, he will need time to fulfill his campaign promises of eliminating the peso currency and reducing taxes on grains. They also suggested that he could bypass any obstacles from Congress by implementing executive decrees. Ramiro Marra, a member of Milei’s inner circle and his party’s candidate for mayor of Buenos Aires city, disclosed that Milei plans to dollarize the economy within two years and gradually remove taxes on the country’s significant agricultural sector.
However, Marra cautioned that Milei’s proposals will not be immediately implemented and that supporters need to be realistic about the time frame required. In an interview at his investment firm, Bull Market Brokers, Marra stated, “It has to be understood that administration proposals do not happen by magic.” Regardless of who wins the upcoming election on October 22nd or the likely November run-off, the new government will face challenging months ahead.
Juan Napoli, also running for a Senate seat with Milei’s party, agreed that significant groundwork needs to be laid before reforms can be successfully implemented. Marra predicted that dollarization would take between nine months to two years to actualize, while he refrained from providing a specific timeline for eliminating taxes on grain exports, which is the country’s primary economic driver. Nevertheless, he emphasized that removing such taxes is their objective and expressed admiration for Chile’s more free-market approach.
Milei’s proposals have struck a chord with voters who are grappling with 113% annual inflation and stagnant economic growth. Many citizens are frustrated with the conventional political forces represented by the left-leaning ruling Peronist bloc and the conservative Together for Change coalition. The prevalence of poverty affects nearly 40% of the population, the benchmark interest rate has soared to 118%, foreign currency reserves are depleted, and strict capital controls have spawned numerous parallel currency exchange markets.
Milei received 30% of the vote in an open primary held this month, surpassing the Peronist coalition, which obtained 27%, and the conservative opposition, which garnered 28%. The respective presidential candidates for the two blocs will be Economy Minister Sergio Massa and former security minister Patricia Bullrich.
Given that Milei is unlikely to have a majority in Congress, even if he becomes president, Marra outlined the party’s objective of laying the groundwork for long-term economic recovery. They will seek ways to maneuver around potential opposition from Congress, including the possibility of plebiscites or the use of executive decrees. Marra stated, “All of the alternatives that are laid out in the law and the national constitution, we are going to use them.”
(Reporting by Anna-Catherine Brigida; Additional reporting by Eliana Raszewski and Juan Bustamante; Editing by Rosalba O’Brien)
Credit: The Star : News Feed
