Talking points from the webinar "Upcoming triggers and remaining concerns"

ARGENTINA - Report 20 Sep 2024 by Domingo Cavallo

Javier Milei started his presidency of Argentina with a strong condemnation of traditional politics, unions and professional corporations, and the role of the state as a resource allocator and redistributor of income and wealth. Once in office, he continued with the same rhetoric but sought to make it more understandable by explaining the economic decisions he was implementing. He has two central obsessions:

1. The absolute balance of fiscal accounts and the elimination of monetary expansion to eradicate inflation, and
2. The reform of the state and the deregulation of the economy to achieve an efficient allocation of resources by the private sector, an essential path for sustained economic growth.

Although he has enacted new regulations and announces daily decisions regarding the state reform and economic deregulation designed by Federico Sturzenegger, Javier Milei is convinced that to successfully carry out a comprehensive reorganization of the economy, he will need legislative support, which he is far from having. Therefore, his electoral political focus is set on the midterm elections in October 2025. Polls suggest that success in the fight against inflation will be key to winning that election. Consequently, macroeconomic balance is his top priority now and will remain so throughout this year and up until the election.

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