Argentina newly inaugurated President, Javier Milei, announced on Tuesday that his administration would not renew contracts for over 5,000 employees who were hired earlier in the year before he assumed office.
This decision is a key component of Milei’s broader plan, introduced since he took office on December 10, which involves extensive cutbacks and devaluations. The right-wing libertarian leader aims to implement significant economic transformations to address the challenges facing Argentina’s struggling economy.
The administration of Argentina’s President Javier Milei has declared that contracts for over 5,000 employees hired this year before his tenure won’t be renewed. Additionally, contracts for government employees hired prior to 2023 will be under review, with the 2023 cutoff aimed at curbing the practice of outgoing presidents inflating payrolls in their final year.
In the face of an anticipated 200 percent inflation rate by the year-end, Milei is committed to reducing government regulations and payrolls, along with facilitating the privatization of state-run industries to stimulate exports and investment. Argentina newly inaugurated
These austerity measures have sparked protests, but Milei remains resolute in his commitment to implementation. He stated, “The goal is (to) start on the road to rebuilding our country, return freedom and autonomy to individuals and start to transform the enormous amount of regulations that have blocked, stalled and stopped economic growth.”
Approximately 300 announced changes include the earmarking of many government companies for privatization, relaxation of protections for renters, employees, and shoppers, a 50 percent devaluation of the Argentine peso, subsidy cuts for energy and transportation, and the closure of some government ministries. These actions are taken amidst soaring inflation and increasing poverty.
Milei, a 53-year-old economist who gained fame on television for his outspoken criticisms of the political establishment, assumed the presidency with the support of Argentines disillusioned with the economic crisis.