Argentina's labor leaders warn of resistance to President-elect Milei's radical reforms
DANIEL POLITI
Updated Thu, November 23, 2023
Presidential candidate of the Liberty Advances coalition Javier Milei greets supporters during a campaign rally in Buenos Aires, Argentina, Wednesday, Oct. 18, 2023.
Updated Thu, November 23, 2023
Presidential candidate of the Liberty Advances coalition Javier Milei greets supporters during a campaign rally in Buenos Aires, Argentina, Wednesday, Oct. 18, 2023.
(AP Photo/Natacha Pisarenko, File)
BUENOS AIRES, Argentina (AP) — Right-wing populist Javier Milei has been president-elect just four days and already Argentina’s unions and social organizations are vowing pushback and even protests if he makes good on his promises to slash the size of the state and privatize companies.
Milei, who famously campaigned with a revving chainsaw to demonstrate what he would do to public spending, says radical measures are needed to get the South American country’s moribund economy back to life and reduce annual inflation of 140%.
The day after winning the election with a wider than expected margin, 56% to 44%, the libertarian said in a radio interview that "everything that can be in the hands of the private sector will be in the hands of the private sector.” He has said he wants to privatize state-owned media companies and state-run oil and gas firms, and has raised the possibility of privatizing water distribution and train service, as well as ending all public works.
Labor union leaders said Thursday they are paying close attention to what the libertarian president-elect says and what they are hearing is in opposition to their interests.
“We clearly have as a central idea for the country development, with production and the creation of jobs, and it seems that all (Milei's) affirmations about cuts in the economy, about privatizations and other things do not go down this path,” Héctor Dear, the secretary general of the powerful General Confederation of Labor umbrella organization, said following a meeting with labor leaders.
The most emphatic opposition so far to Milei’s privatization plans came from the head of the Airline Pilots Association, Pablo Biró, who said Wednesday that Milei “will have to literally kill us” to go through with his plan to change the ownership structure of state-owned airline Aerolineas Argentinas.
Most labor leaders, however, have emphasized a wait-and-see attitude, saying they’re on alert but recognize Argentines voted for Milei and will wait for him to implement policies.
“In the moment they move forward with reforms related to labor rights, both individual and collective, and when the labor organizations affected by these adjustments request it, the CGT will take a stance,” Dear said.
Some, however, made clear the resistance has already started.
“We cannot wait to see if this man succeeds,” Daniel Catalano, secretary general of the State Workers’ Association, said during the march by the Mothers of Plaza de Mayo. “We expect absolutely nothing from Javier Milei.”
Catalano was one of the representatives of labor unions and social organizations who joined the Mothers of Plaza de Mayo in their weekly march in downtown Buenos Aires Thursday.
The weekly event by the human rights group made up of mothers of children who disappeared during Argentina’s military dictatorship (1976-1983) took on a different tone Thursday as groups called on supporters to join the mothers to symbolically represent opposition to Milei’s government.
There’s also concern among human rights organizations about a potential setback in policies that allowed for the prosecution of perpetrators of crimes against humanity during the dictatorship.
Leaders of leftist social organizations also held a meeting Thursday to discuss their response to Milei’s policies and “a plan for struggle against austerity” that will involve street protests.
Milei has warned of inevitable pain ahead as a result of his policies, repeatedly saying that “there is no money,” noting “it’s likely we’ll have to endure six tough months, but they will be the foundation for Argentina’s takeoff.”
He has also recognized there’s likely to be protests as a response to his policies.
“The law will be applied, and I will not let myself be extorted,” he said.
Milei will “probably want to carry out the privatizations fairly quickly,” said Nicolás Saldías, senior analyst at the Economist Intelligence Unit for Latin America and the Caribbean, who warned that “a lot of social protest” may very well be inevitable.
“A lot of labor unions are highly mobilized, this is a high stakes situation for them,” Sadias added, noting that “Milei is going to face a lot of resistance on the streets.”
Argentina has a long tradition of labor unions and powerful social organizations that block roads and carry out strikes to protest as a way to pressure the government to heed their demands, and respecting the right to protest has been a hallmark of most of the governments that have ruled the country over the past two decades.
In addition, due to a history of violent response to these protests that have included deaths, law enforcement is often hesitant to break them up.
—————
Associated Press writer Débora Rey contributed to this report.
BUENOS AIRES, Argentina (AP) — Right-wing populist Javier Milei has been president-elect just four days and already Argentina’s unions and social organizations are vowing pushback and even protests if he makes good on his promises to slash the size of the state and privatize companies.
Milei, who famously campaigned with a revving chainsaw to demonstrate what he would do to public spending, says radical measures are needed to get the South American country’s moribund economy back to life and reduce annual inflation of 140%.
The day after winning the election with a wider than expected margin, 56% to 44%, the libertarian said in a radio interview that "everything that can be in the hands of the private sector will be in the hands of the private sector.” He has said he wants to privatize state-owned media companies and state-run oil and gas firms, and has raised the possibility of privatizing water distribution and train service, as well as ending all public works.
Labor union leaders said Thursday they are paying close attention to what the libertarian president-elect says and what they are hearing is in opposition to their interests.
“We clearly have as a central idea for the country development, with production and the creation of jobs, and it seems that all (Milei's) affirmations about cuts in the economy, about privatizations and other things do not go down this path,” Héctor Dear, the secretary general of the powerful General Confederation of Labor umbrella organization, said following a meeting with labor leaders.
The most emphatic opposition so far to Milei’s privatization plans came from the head of the Airline Pilots Association, Pablo Biró, who said Wednesday that Milei “will have to literally kill us” to go through with his plan to change the ownership structure of state-owned airline Aerolineas Argentinas.
Most labor leaders, however, have emphasized a wait-and-see attitude, saying they’re on alert but recognize Argentines voted for Milei and will wait for him to implement policies.
“In the moment they move forward with reforms related to labor rights, both individual and collective, and when the labor organizations affected by these adjustments request it, the CGT will take a stance,” Dear said.
Some, however, made clear the resistance has already started.
“We cannot wait to see if this man succeeds,” Daniel Catalano, secretary general of the State Workers’ Association, said during the march by the Mothers of Plaza de Mayo. “We expect absolutely nothing from Javier Milei.”
Catalano was one of the representatives of labor unions and social organizations who joined the Mothers of Plaza de Mayo in their weekly march in downtown Buenos Aires Thursday.
The weekly event by the human rights group made up of mothers of children who disappeared during Argentina’s military dictatorship (1976-1983) took on a different tone Thursday as groups called on supporters to join the mothers to symbolically represent opposition to Milei’s government.
There’s also concern among human rights organizations about a potential setback in policies that allowed for the prosecution of perpetrators of crimes against humanity during the dictatorship.
Leaders of leftist social organizations also held a meeting Thursday to discuss their response to Milei’s policies and “a plan for struggle against austerity” that will involve street protests.
Milei has warned of inevitable pain ahead as a result of his policies, repeatedly saying that “there is no money,” noting “it’s likely we’ll have to endure six tough months, but they will be the foundation for Argentina’s takeoff.”
He has also recognized there’s likely to be protests as a response to his policies.
“The law will be applied, and I will not let myself be extorted,” he said.
Milei will “probably want to carry out the privatizations fairly quickly,” said Nicolás Saldías, senior analyst at the Economist Intelligence Unit for Latin America and the Caribbean, who warned that “a lot of social protest” may very well be inevitable.
“A lot of labor unions are highly mobilized, this is a high stakes situation for them,” Sadias added, noting that “Milei is going to face a lot of resistance on the streets.”
Argentina has a long tradition of labor unions and powerful social organizations that block roads and carry out strikes to protest as a way to pressure the government to heed their demands, and respecting the right to protest has been a hallmark of most of the governments that have ruled the country over the past two decades.
In addition, due to a history of violent response to these protests that have included deaths, law enforcement is often hesitant to break them up.
—————
Associated Press writer Débora Rey contributed to this report.
Reuters
Fri, November 24, 2023
Argentina holds second round of presidential election
BUENOS AIRES (Reuters) - Argentina's President-elect Javier Milei said on Friday that the closure of the country's central bank, a signature campaign pledge, was a "non-negotiable matter", according to a statement from his office posted on social media platform X.
The comments, in response to what he called "false rumors", come as the outsider libertarian economist races to put together his team ahead of taking office on Dec. 10, with some signs that he is picking a more moderate Cabinet that expected.
Argentina's social security administration ANSES, a key institution given Milei's pledge to slash state spending and subsidies, will be lead by economist Osvaldo Giordano from the key central Cordoba region, the statement added.
That marks a shift from a previous plan that Milei would appoint a close ally to lead the administration.
Horacio Marin, a private energy sector executive, was also confirmed as the incoming chief of state oil company YPF.
Milei faces major hurdles to implement his more radical reform plans, which include dollarizing the economy, shutting the central bank and privatizing state companies like YPF, which will take time if they can be done at all.
His libertarian coalition has a limited number of seats in Congress and no provincial governors. Milei also has to juggle demands from the more mainstream conservative bloc, whose public backing was key to him winning the run-off election last week.
(Reporting by Gabriel Araujo and Adam Jourdan)
Argentina's economy chief frontrunner pitches Milei's 'shock' therapy to banks - sources
Fri, November 24, 2023
Central Bank President Caputo speaks during a news conference at the G20 Meeting of Finance Ministers in Buenos Aires
By Jorgelina do Rosario and Jorge Otaola
BUENOS AIRES (Reuters) - Argentine former central banker Luis Caputo, frontrunner to be the new economy minister, met local and international bank officials on Friday to lay out the economic plans of President-elect Javier Milei, three sources and a banking group said.
The meeting at the La Rural conference center in Buenos Aires comes as Milei, who has pledged "shock therapy" for the embattled economy, races to put together his economic team. Caputo has been tipped as a front-runner for the role.
In the meeting, however, Caputo declined to confirm that he would be the new economy minister, two of the sources said. Milei has not yet confirmed any appointment.
However, signs that libertarian outsider Milei is leaning towards a more orthodox economic team and policies have spurred markets this week, with bonds up almost 14% and equities over 40% since he won a run-off election last Sunday.
Caputo emphasized the idea of an abrupt economic adjustment, needed to tamp down inflation nearing 150%, head off a looming recession, undo an array of capital controls and rebuild net reserves seen at negative $10 billion.
"Our approach is fiscal and monetary shock from day one. The roadmap is orthodox and without crazy things," Caputo told the assembled bank representatives, according to a senior banking source who attended the meeting.
Caputo, former finance minister and central bank chief during ex-president Mauricio Macri's conservative government, is seen as a more orthodox pick for libertarian Milei's new administration, which takes office on Dec. 10.
The local ADEBA banking association confirmed the meeting.
"It was a meeting in which we exchanged opinions on the challenges of the economy and the way to address them," Javier Bolzico, president of ADEBA, told Reuters.
"The meeting was very positive, Caputo emphasized fiscal balance as the basis of the model and a comprehensive and market approach to the BCRA's remunerated liabilities. Caputo's vision gave us peace of mind and confidence."
Milei's team did not respond to a request for comment.
Macri's conservative PRO party backed Milei for the run-off vote and his allies are pushing to get positions in the Cabinet.
Caputo did not provide details on how Milei's government plans to address public spending nor what it aims to do with the central bank's huge pile of Leliq short-term notes, which Milei has targeted because they expand money supply of local pesos.
Caputo said Milei's government would lift currency controls rapidly, the first source and a second banking source briefed on the meeting said, but it would not happen immediately. He added no dollarization was planned in the short-term, as fiscal and monetary stabilization were need, the first source said.
"First you need a stabilization program," Caputo said, according to the first source present in the meeting.
Milei had made shutting the central bank and dollarizing the economy key planks of his campaign, but admitted these things will take time given the economic crisis. Earlier on Friday, though, he said shutting the central bank was "non-negotiable".
Caputo also told the bank representatives that addressing inflation forcefully was a top priority, though did not provide details on how the future government would tame prices.
The second bank source said Caputo had discussed the need to fully attack inflation and lower the Leliq pile, though did not have details on how this would be done.
"Given his knowledge of the market, he is one of those responsible for gauging the position of the banks before the new government," a third bank source who confirmed the meeting said.
(Reporting by Jorgelina do Rosario and Jorge Otaola; Editing by Adam Jourdan and Alistair Bell)
Trump tells Argentina's President-elect Javier Milei he plans to visit Buenos Aires
DANIEL POLITI
Thu, November 23, 2023
FILE - Republican presidential candidate and former President Donald Trump speaks during a rally, Nov. 18, 2023, in Fort Dodge, Iowa. Trump has long praised a particular type of foreign leader, men he describes as tough and strong, even if they're accused of chipping away at democracy. He's now celebrating Argentina's newly elected president, Javier Milei.
(AP Photo/Bryon Houlgrave, File)
BUENOS AIRES, Argentina (AP) — Former President Donald Trump has told Argentina’s President-elect Javier Milei that he plans to travel to the South American country so the two can meet, Milei's office said Thursday.
The office did not give a date for when Trump intends to be in Buenos Aires. The inauguration of Milei, a right-wing populist who has expressed admiration for Trump, is scheduled for Dec. 10.
“The president-elect received a call last night from the former president of the United States, Donald Trump, who congratulated him and pointed out his triumph by a wide margin in last Sunday’s election had a great impact on a global scale,” a news release from Milei's office said.
A local journalist who was first to report the news, Luis Majul, wrote on X early Thursday that the lawmaker son of former Brazilian President Jair Bolsonaro, Eduardo Bolsonaro, was the one who “facilitated” the contact between Milei and the GOP front-runner. “That’s right,” Milei posted in response.
Trump celebrated Milei’s victory with a social media post of his own on Tuesday.
“I am very proud of you. You will turn your country around and truly make Argentina great again,” Trump said in a video published on social media Tuesday.
Milei has often been compared to Trump, whom he praised in an interview with former Fox News host Tucker Carlson earlier this year. During the interview, Milei called on Trump to “continue with his fight against socialism, because he’s one of the few who fully understood that the battle is against socialism, that the battle is against the statists.”
His conversation with Trump on Wednesday took place a few hours after Milei spoke with President Joe Biden.
The White House said Biden congratulated Milei and spoke of “the strong relationship between the United States and Argentina on economic issues, on regional and multilateral cooperation, and on shared priorities, including advocating for the protection of human rights, addressing food insecurity and investing in clean energy.”
BUENOS AIRES, Argentina (AP) — Former President Donald Trump has told Argentina’s President-elect Javier Milei that he plans to travel to the South American country so the two can meet, Milei's office said Thursday.
The office did not give a date for when Trump intends to be in Buenos Aires. The inauguration of Milei, a right-wing populist who has expressed admiration for Trump, is scheduled for Dec. 10.
“The president-elect received a call last night from the former president of the United States, Donald Trump, who congratulated him and pointed out his triumph by a wide margin in last Sunday’s election had a great impact on a global scale,” a news release from Milei's office said.
A local journalist who was first to report the news, Luis Majul, wrote on X early Thursday that the lawmaker son of former Brazilian President Jair Bolsonaro, Eduardo Bolsonaro, was the one who “facilitated” the contact between Milei and the GOP front-runner. “That’s right,” Milei posted in response.
Trump celebrated Milei’s victory with a social media post of his own on Tuesday.
“I am very proud of you. You will turn your country around and truly make Argentina great again,” Trump said in a video published on social media Tuesday.
Milei has often been compared to Trump, whom he praised in an interview with former Fox News host Tucker Carlson earlier this year. During the interview, Milei called on Trump to “continue with his fight against socialism, because he’s one of the few who fully understood that the battle is against socialism, that the battle is against the statists.”
His conversation with Trump on Wednesday took place a few hours after Milei spoke with President Joe Biden.
The White House said Biden congratulated Milei and spoke of “the strong relationship between the United States and Argentina on economic issues, on regional and multilateral cooperation, and on shared priorities, including advocating for the protection of human rights, addressing food insecurity and investing in clean energy.”
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