Demonstrators protest against Argentina's new president, Javier Mileis, outside the National Congress in Buenos Aires, Argentina. (File/Reuters)
The government of Argentina's new President Javier Milei said Tuesday that his government will not renew contracts for more than 5,000 workers hired this year before he took office.
The move was part of a sweeping plan of cuts and devaluations that the right-wing libertarian had announced since taking office on December 10 to transform Argentina's struggling economy.
Contracts for other government employees hired before 2023 will be reviewed, authorities said. The 2023 limit is apparently intended to address the practice of outgoing presidents padding payrolls in their final years.
With inflation expected to reach around 200% by the end of the year, Milei has pledged to reduce government regulations and labor costs and allow the privatization of state-owned enterprises as a way to boost exports and investment.
The cuts have already led to protests, but Milei has promised to continue.
The goal is to begin rebuilding our country, return freedom and autonomy to individuals, and begin transforming the vast amount of regulation that has blocked, stalled, and stopped,” he said.
About 300 previously announced changes would target many public companies for privatization and relax protections for tenants, workers and shoppers.
The steps include a 50% devaluation of the Argentine peso, cuts in energy and transport subsidies and the closure of some ministries. They come amid rising inflation and increasing poverty.
Milei, a 53-year-old economist who rose to fame on television with blasphemous tirades against what he called political caste, became president with the support of Argentines disillusioned by the economic crisis.
(Only the headline and image of this report may have been reworked by Business Standard staff; the rest of the content is automatically generated from a syndicated feed.)
First print: December 26, 2023 | 11:33 PM IST