Argentina’s new President Milei wants to declare a state of emergency in order to implement his “shock therapy” in the areas of economics and finance and to undermine existing laws. Thousands again took to the streets in protest.
Argentina’s right-wing populist President Javier Milei promised the country “shock therapy” when he was inaugurated – now it is becoming concrete. Milei wants to impose a state of emergency by decree until 2025 in order to change or abolish a total of 350 current laws.
The cuts would affect tenancy and labor law, the financial and pension systems and envisage the elimination of up to 7,000 public sector jobs. According to Milei’s draft, the state of emergency should also be able to be extended for another two years, i.e. until the regular end of his term of office.
party in the Parliamentary minority
If Parliament approves the draft, the decree can come into force on Friday – to avert it, both chambers of the Congreso would have to block the draft. However, Milei’s party “La Libertad Avanza” is in the minority in both chambers of Congress.
In a state of emergency, President Milei would have extensive powers to decide on issues that can currently only be regulated by parliament. His decree also includes restrictions on demonstrations, far-reaching electoral reform, sweeping tax changes and executive powers to privatize public companies.
Union protests in Buenos Aires
Thousands of people once again took to the streets to protest against the plans. In the capital Buenos Aires, demonstrators called on the judiciary to declare the decree invalid. Numerous people waved the Argentine flag and carried placards reading “The homeland is not for sale.”
“We do not question the legitimacy of President Milei, but we want him to respect the separation of powers,” emphasized the head of the construction union, Gerardo Martínez. After the demonstration ended, individual groups clashed with the police. According to media reports, several people were arrested.
Country in a difficult situation Economic crisis
The 53-year-old Milei is new to politics and has made it to the top of Latin America’s third-largest economy with a right-wing populist-libertarian program and provocative appearances.
Argentina is in a serious economic crisis: Inflation has risen to more than 160 percent and more than 40 percent of the population lives in poverty. The reasons for this are a bloated state apparatus and a pronounced shadow economy, which hardly provides the state with any tax revenue.