Libertarian President Javier Milei Reduces Ministry Number to Nine in Argentina
Javier Milei, the newly elected president of Argentina, has taken immediate action to fulfill one of his campaign promises by reducing the number of ministries in the country. This move is part of Milei’s plan to cut expenses and implement extensive state reforms in order to achieve a reduction of 5% of the gross domestic product (GDP).
Only Nine Ministries Remain
Out of the numerous ministries that existed in the previous administration, only nine have been retained. These remaining ministries cover important areas such as Homeland, Foreign Relations, Defense, and Health and Human Capital. Ministries related to the Environment, Tourism, Transportation, Education, and Women’s areas, among others, have been closed down.
Promised State Reduction Policies
In his inaugural speech, President Milei reiterated his commitment to the state reduction policies he had announced during his campaign. He emphasized the need for a 5% cut in government expenditure, stating that the state simply does not have the funds to sustain its previous levels of spending.
“The situation in Argentina is critical and an emergency. We have no alternatives and we don’t have time either. We have no room for sterile discussions.”
Economic Measures to Achieve Fiscal Balance
This week, the government is expected to provide further details on the substantial cuts and economic measures that will support President Milei’s goals of achieving a fiscal balance. These measures are aimed at addressing the pressing economic challenges in Argentina.
Uncertainty Surrounding Central Bank Closure
While President Milei had previously stated his intention to close the Central Bank of Argentina in order to dollarize the economy, the process for doing so remains uncertain. The newly appointed head of the bank, Santiago Bausili, has clarified that any closure will be symbolic, with the government focusing instead on controlling monetary issuance.
Hot Take: Milei’s Bold Steps toward Reform
President Javier Milei has wasted no time in implementing his promised reforms, demonstrating his commitment to reducing the size of the state and addressing Argentina’s economic challenges. By reducing the number of ministries and announcing plans for significant expenditure cuts, Milei is taking bold steps towards achieving fiscal balance. While the closure of the Central Bank may not be as immediate as initially expected, Milei’s determination to control monetary issuance shows his willingness to explore alternative solutions. As Argentina watches these developments unfold, it is clear that the new president’s agenda is guided by a vision for economic stability and reform.
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