President Javier Milei of Argentina announces a sweeping plan to dismiss 70,000 government employees as part of an aggressive fiscal adjustment strategy to address the country’s economic challenges.
By yourNEWS Media Staff
Argentine President Javier Milei has disclosed an ambitious plan to eliminate 70,000 government jobs in the upcoming months, marking a significant move towards realizing his vision of a minimalist government. During an hour-long address at the March 26 International Economic Forum of the Americas event in Buenos Aires, Milei articulated his administration’s commitment to dramatic fiscal adjustments to combat the nation’s staggering 250 percent inflation rate and transition it to single-digit levels.
Milei, who has openly identified as an anarcho-capitalist, outlined a series of drastic measures his government has already implemented, including the elimination of public works, discretionary transfers to provinces, and the termination of 50,000 public employees, with plans to dismiss an additional 70,000. This decision is part of a broader strategy to curtail state expenditures rapidly.
The president also highlighted the cessation of over 200,000 social welfare programs, which he criticized for being irregularly managed, while reassuring that his government continues to prioritize social policy, especially in areas of food and education assistance.
According to a statement released by Casa Rosada to La Nación, the figure of 70,000 encompasses the total number of government contracts under review, with an anticipated 20 percent of these positions slated for termination by the end of the month. This action aligns with Milei’s promise upon his inauguration in December 2023 to address the severe economic decline that has seen nearly half of Argentina’s population living in poverty.
Argentina’s struggle with economic instability, characterized by frequent defaults on its sovereign debt and reliance on foreign loans, notably from the IMF and China, is a legacy Milei aims to overturn. His administration marks a departure from the traditionally dominant Peronist political movement, which has favored nationalization and expansive social welfare programs.
In his speech, Milei condemned the previous government’s policies as catastrophic, blaming them for a significant loss in income and a severe food scarcity affecting millions. He also criticized the opposition for hindering his reformative efforts aimed at achieving a rapid, V-shaped economic recovery.
Milei’s approach, emphasizing drastic fiscal discipline and free-market capitalism, has attracted both domestic and international attention. In a January speech at the World Economic Forum, he championed capitalism as the definitive solution to global poverty and hunger, a stance that has garnered praise from figures such as U.S. Secretary of Treasury Janet Yellen and IMF’s Kristalina Georgieva. Both have acknowledged the critical condition of the Argentine economy and endorsed Milei’s bold measures as necessary for the country’s recovery. Argentina remains the IMF’s largest debtor, with an outstanding debt of $46 billion, underscoring the urgency of Milei’s reform agenda.
