Argentina’s newly elected President, Javier Milei, appears to be softening his stance on several of his controversial policies that saw him elected President just a few weeks ago.
Milei’s new cabinet comprises primarily of mainstream conservatives rather than expected libertarian allies, and once radical ideas like dollarization are now seeming like they will be put on hold. Milei appears to be prioritizing the downsizing of government, though he has retracted his intention to dissolve the national health ministry.
Crucially, the so-called outsider appears to be about-turning on his pledge to withdraw from the Paris climate agreement, with his “climate diplomat” Marcia Levaggi tells Reuters on Sunday that the new government had sent her to head the Argentine delegation at the United Nations’ Cop28 climate conference.
In his inaugural address, Mr. Milei emphasized Argentina’s critical economic condition, which sees inflation rates forecasted at almost 200 percent. He warned of the necessity of severe fiscal measures to prevent a disaster that could result in poverty rates exceeding 90 percent and destitution rates over 50 percent. “The outgoing government has left us with hyperinflation, and it’s our utmost priority to do everything possible to prevent such a catastrophe,” he said. Pointing towards a severe cost-cutting agenda, he added, “For that reason, there’s no alternative to austerity.”
