Argentina's Milei orders revamping of economy

BUENOS AIRES — Argentina's President Javier Milei announced sweeping initiatives on Wednesday to transform Argentina's economy, including easing government regulation and allowing privatization of state-run industries as a way to boost exports and investment.

"The goal is to start along the path to rebuilding the country… and start to undo the huge number of regulations that have held back and prevented economic growth," Milei said in a televised speech from the presidential palace, flanked by his cabinet.

Milei's announcement of the moves for South America's second-biggest economy came as thousands of Argentines took to the streets of the capital to protest against austerity and deregulation actions taken.

The demonstrations went off relatively peacefully.

Marchers set out toward Buenos Aires' iconic Plaza de Mayo.

Toward the end of the demonstration, organizers called on the country's trade unions to declare a general strike.

Protesters "can demonstrate as many times as they want. They can go to the squares … but the streets are not going to be closed", Milei's security minister, Patricia Bullrich, told local media.

Milei unveiled a series of measures on Wednesday to deregulate the country's economy, eliminating or changing more than 300 rules via presidential decree, including on rent and labor practices.

The country's economy is on its knees after decades of debt and financial mismanagement, with inflation surpassing 160 percent year-on-year and 40 percent of Argentines living in poverty, Agence France-Presse reported.

Milei, who was elected last month and took office several days ago, has pledged to curb inflation but warned that economic "shock "treatment is the only solution and that the situation will get worse before it improves.

Sectors affected

Milei also announced a "modernization of labor law to facilitate the process of creating real jobs" and a series of other deregulatory measures affecting tourism, satellite internet services, pharmaceuticals, wine production and foreign trade.

Milei is facing a test of how his administration responds to demonstrations against economic shock measures, which he said are needed to address Argentina's severe crisis.

The steps include a 50 percent devaluation of the Argentine peso, cuts to energy and transportation subsidies, and the closure of some government ministries.

Milei has also announced a halt to all new public construction projects and a yearlong suspension of state advertising.

Last week's measures to tackle inflation were welcomed by the International Monetary Fund, to which Argentina owes $44 billion.

"Over the last century, politicians took pains to expand the power of the state, to the detriment of ordinary Argentines," Milei said on Wednesday.

Agencies Via Xinhua