Milei eyes legislative win to push second wave of reforms
Argentine President Javier Milei, pictured here at the United Nations Headquarters in 2024, plans to introduce a new package of state and economic reforms to Congress. File Photo by John Angelillo/UPI | License Photo
June 17 (UPI) -- Argentine President Javier Milei plans to introduce a new package of state and economic reforms to Congress after the country's legislative elections in October.
Milei hopes the vote will strengthen his party, La Libertad Avanza, which holds limited representation in Congress. He aims to win control of the Senate with allies, unseat the Peronist-Kirchnerist bloc and push his reform agenda through quickly.
Recent polls show Milei's party leading voter preferences by a wide margin, polling between 37% and 43%. The left-leaning coalition Unión por la Patria trails with support between 30% and 33%, while other parties lag far behind.
If Milei wins big in October, he plans to launch a broader reform program targeting Argentina's government, judiciary and public security system.
On fiscal policy, Milei says he wants to cut consolidated public spending to no more than 25% of GDP by 2027. "The national government, provinces and municipalities will all have to do their part," he said.
The administration plans to eliminate 90% of national taxes, keeping only six, in a bid to dismantle Argentina's complex tax system and shrink the state bureaucracy.
Milei has pledged to give Argentines "greater economic freedom," including lifting price controls and opening up foreign trade.
On security, the government wants to lower the age of criminal responsibility, raise penalties under the penal code and pass a national security law. The measure would expand powers for the state, intelligence services and law enforcement to combat crime.
The proposed justice reform seeks to address the country's public safety crisis by curbing what the government sees as excessive political influence over the judiciary.
Milei has said he will nominate candidates this year to fill all vacancies in the federal justice system. That includes top judgeships, federal courts, prosecutors and public defenders -- positions that account for about 40% of Argentina's federal bench.
On the economic front, the government plans to end controls on foreign currency transactions, expand deregulation, downsize overlapping agencies and speed up privatizations. Officials have not ruled out including Aerolíneas Argentinas.
On immigration, Milei wants to tighten citizenship rules, restrict free access to public healthcare -- particularly along the Bolivian border -- and limit enrollment of foreign students in national universities. He also aims to authorize expedited deportation procedures.
In labor policy, the government aims to curb union power. The plan would require 75% of normal operations to continue during strikes in essential services such as healthcare, education, security and telecommunications. For sectors deemed critically important -- including food production, banking, exports and construction -- a minimum service level of 50% would be required.
Milei's first reform package included deep fiscal austerity, cutting public investment, halting money printing by the Central Bank, closing state agencies and laying off about 43,000 public employees.
The government also launched privatization efforts for eight state-owned companies.
The measures triggered a drop in consumption and wages, affecting employment and private sector output.
Still, the administration points to falling inflation -- down to 1.5% in May -- along with rising imports and exports, climbing stock values for Argentine companies and a new agreement with the International Monetary Fund as key achievements.
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