- Argentine president-elect Javier Milei has stated shutting down the country’s central bank is “non-negotiable” despite facing challenges to implement his reform agenda.
- Milei is assembling a new government ahead of taking office, picking a mix of libertarian allies and more moderate mainstream conservatives.
- Milei faces obstacles to enact his transformative economic vision, with limited Congressional seats and political capital. He may need to temper proposals like shuttering the central bank.
Argentine president-elect Javier Milei has stated that shutting down the country’s central bank, a key campaign promise, is “non-negotiable”, according to a statement from his office.
Milei Assembles New Government
The libertarian economist is racing to assemble his new government ahead of taking office on December 10th. There are some indications he may be picking a more moderate cabinet than initially expected.
Argentina’s social security administration, a vital institution given Milei’s pledges to cut state spending and subsidies, will be led by economist Osvaldo Giordano. This marks a shift from earlier plans to appoint a close ally.
Horacio Marin, a private energy executive, has also been confirmed as the new head of state oil company YPF.
Challenges Ahead
Milei faces major obstacles to implement his more radical reform agenda, including dollarizing the economy, shutting the central bank, and privatizing state companies like YPF.
His libertarian coalition has limited Congressional seats and no provincial governors. Milei must also balance demands from the mainstream conservative bloc whose support was critical to his election victory.
Conclusion
The anti-establishment Milei has an uphill battle to enact his transformative economic vision. With limited political capital, he may need to temper proposals to shutter the central bank and make other sweeping changes.
