Argentina's Milei orders major deregulation of economy

BUENOS AIRES

Argentina's new leader Javier Milei has unveiled a series of measures to deregulate the country's struggling economy, eliminating or changing more than 300 rules, including on rent and labor practices.

"The goal is to start along the path to rebuilding the country... and start to undo the huge number of regulations that have held back and prevented economic growth," Milei said on Dec. 20 in a televised speech from the presidential palace.

Latin America's third-biggest economy is on its knees after decades of debt and financial mismanagement, with inflation surpassing 160 percent year-on-year and 40 percent of Argentines living in poverty.

Milei, who was elected last month and took office two weeks ago, has pledged to curb inflation, but has warned that economic "shock" treatment is the only solution.

Among the changes announced are the elimination of a law regulating rent, as well as rules preventing the privatization of state enterprises.

Milei also announced a "modernization of labor law to facilitate the process of creating real jobs.”

In order for the measures to take effect, they must be published in the government gazette and then assessed by a joint committee of lawmakers from both chambers of the legislature.

Milei's far-right Libertad Avanza party only has 40 seats in the 257-member lower house and seven senators out of 72. But Milei's margin improves if the members of the center-right Together for Change coalition are taken into account.

For political analyst Lara Goyburu, Milei's moves are not surprising, given how he campaigned for the presidency. But she said that his use of an emergency decree was unusual.

The 53-year-old libertarian and self-described "anarcho-capitalist" has said spending cuts equivalent to five percent of gross domestic product are needed.

Before the Dec. 20 announcement, his administration had already devalued Argentina's peso by more than 50 percent, and announced huge cuts in generous state subsidies of fuel and transport from January - reductions that are sure to hit everyday Argentines, who are used to hefty assistance.

Before Milei delivered his speech, thousands of people protested against his government in Buenos Aires, waving banners and chanting slogans near the Casa Rosada presidential palace.

Their route through the city center was lined by military police and other security officials, including police in full riot gear, in a large show of force that protest organizers criticized as an attempt at provocation.