Pink Panther
Well-known member
The President seems to be in La La land going and accepting fake medals around Europe. There is all this talk about things improving in Argentina but it is just that. Talk. Talk is cheap. Poverty levels are sky-high and no arguing that they are higher under Milei vs. Alberto. Unemployment rates are surging and getting worse. It is very expensive here. This is good article that talks about the challenges.
He needs to stop traveling and focus on the important issues. Forget about world domination and concentrate on Argentina.
In reality, it is more likely that the reform momentum will be slowed by hardening opposition in the National Congress of Argentina, in particular in the Senate, where Peronist provincial governments still hold sway. Further exchange rate depreciation, the lack of a strong rebound in labor markets, and accumulating pain from continued austerity will also impair Milei’s hopes of gaining a parliamentary majority of his own during next year’s midterm elections.
A drubbing at the polls could throw Argentina back to square one. Both of the last two governments were hobbled by weak election outcomes halfway through their presidents’ terms. Despite Milei’s popularity with a large part of the Argentinian public, failure to array Congress behind his movement could again leave Argentina with a lame duck government and a half-completed reform agenda.
In such a situation, the envisaged liberalization, if not outright dollarization, of Argentina’s exchange rate regime—which still seems to be one of the president’s key objectives—is bound to fail. The country would need a strong and growing economy to sustain the kind of fiscal discipline that is required for a stable exchange rate regime, and this will not be possible without deep changes to Argentina’s economic laws and structure, starting with the government’s own footprint.
www.atlanticcouncil.org
He needs to stop traveling and focus on the important issues. Forget about world domination and concentrate on Argentina.
In reality, it is more likely that the reform momentum will be slowed by hardening opposition in the National Congress of Argentina, in particular in the Senate, where Peronist provincial governments still hold sway. Further exchange rate depreciation, the lack of a strong rebound in labor markets, and accumulating pain from continued austerity will also impair Milei’s hopes of gaining a parliamentary majority of his own during next year’s midterm elections.
A drubbing at the polls could throw Argentina back to square one. Both of the last two governments were hobbled by weak election outcomes halfway through their presidents’ terms. Despite Milei’s popularity with a large part of the Argentinian public, failure to array Congress behind his movement could again leave Argentina with a lame duck government and a half-completed reform agenda.
In such a situation, the envisaged liberalization, if not outright dollarization, of Argentina’s exchange rate regime—which still seems to be one of the president’s key objectives—is bound to fail. The country would need a strong and growing economy to sustain the kind of fiscal discipline that is required for a stable exchange rate regime, and this will not be possible without deep changes to Argentina’s economic laws and structure, starting with the government’s own footprint.
Milei’s biggest challenge is to foster the societal consensus that Argentina needs to thrive
Despite President Javier Milei’s popularity with a large part of the Argentinian public, failure to array Congress behind his movement could again leave the country with a half-completed reform agenda.
www.atlanticcouncil.org
