Argentina’s newly elected president, Javier Milei, has vowed to take bold action to revive the country’s economy, which is currently grappling with its worst crisis in two decades. However, the radical libertarian will face significant challenges in implementing his plans, given his limited representation in Congress. Milei heads a coalition with only seven seats in the Senate and 38 seats in the lower Chamber of Deputies, making it difficult for him to push through his agenda without forming alliances with other parties.
Milei’s plans include shutting the central bank, introducing the dollar as the official currency, cutting back the size of government, and privatizing state firms like energy giant YPF. However, these proposals are likely to face strong pushback from the Peronist opposition, which will retain the largest minority in both chambers of Congress. To overcome these challenges, Milei will need to form alliances with other political parties and engage in dialogue with the entire political spectrum.
Javier Milei (Via Javier Milei/Twitter)
Milei has already formed an uneasy alliance with key members of the Together for Change conservative bloc, including former conservative president Mauricio Macri and former candidate Patricia Bullrich. However, horse-trading is already underway, which could impact the make-up of his final Cabinet. Milei will also need to learn the rules of the political game, according to analyst Mariel Fornoni from consultancy Management & Fit, and rely on regional governors and mayors, who hold significant power in Argentina’s federal system.
In his first speech as president-elect, Milei promised that there would be “no room for half measures” to revitalize the economy. However, unless he can capitalize on his political alliances, half measures may be all he can achieve. Despite the challenges ahead, Milei is determined to take bold action to revive Argentina’s economy, and it remains to be seen whether he will be able to overcome the obstacles and implement his ambitious plans.
