Claim that 70,000 public employees will be fired stirs the country: 'At any cost'

12PUNTO FOREIGN NEWS

Argentine President Javier Milei has announced a plan to lay off 70,000 people in the public sector and terminate more than 200,000 social assistance programs as part of reforms aimed at stabilizing the country's struggling economy.

Milei announced the proposed measures during a one-hour speech at the IEFA Latam Forum in Buenos Aires on Tuesday.

Milei recalled that annual inflation had decreased by 276 percent. Emphasizing that there is still a long way to go to solve the economic problems in the country, the Argentine President said, "There is a lot of mess to clean up."

Using the phrase "There is much more chainsaw," Milei signaled that austerity policies would continue.

Throughout his presidential campaign, Milei's regular brandishing of a chainsaw was a striking symbol of his promises to cut social spending, slash pension funds, close the country's central bank, and reduce the number of ministries by more than half. Advocating for the minimization of state functions, Milei had stated that he plans to solve Argentina's problems by increasing trade and exports.

According to reports in the Buenos Aires Times, Milei aims for the country to reach fiscal balance this year and plans to do so 'at any cost.'

Milei also said he would double down on efforts to reform the economy after the 2025 congressional elections and that more than 3,000 reforms are on the way. The Milei government anticipates a recovery supported by increasing public confidence in the country's future.

Citing public opinion polls, Milei stated, "People have hope, they see the light at the end of the tunnel."

The announcement of further austerity reforms has led to a fierce reaction from unions in Argentina, with one of the unions going on strike on Tuesday.

Milei, who describes himself as an anarcho-capitalist and took office in December 2023, warned that it would take time for the results of his program to be seen and that things might get worse before they get better. Argentina, the third-largest economy in Latin America, has been grappling with a severe economic crisis following decades of poor fiscal management.

News Source: 12punto