Hamilton Journal News

Milei is sworn in as Argentina braces for his shock therapy

- By Patrick Gillespie and Manuela Tobias

European leaders including Hungary’s Viktor Orban and Ukraine’s Volodymyr Zelenskyy. Brazil’s Luiz Inacio Javier Milei took office as Lula da Silva didn’t attend Argentina’s president Sun- his inaugurati­on, being repday, promising to eradi- resented by his foreign mincate inflation and rescue ister. the nation’s troubled econDuring the campaign, Milomy with a ei’s radical proposals to rein shock-therin inflation — such as introapy program ducing the dollar as an alterbased o n native to the peso and shutdrasti­c cuts to ting down the central bank public spend- — resonated with Argening. tines outraged with con

The liber- sumer prices soaring more tarian leader, 140% a year. But in an unexwho beat out pected turn to pragmatism, Argentina’s traditiona­l politi- he seemed to put such difcal coalitions to win an elec- ficult-to-implement plans tion run-off last month, took on the back burner, priorthe oath of office in a cere- itizing a classic program of mony in Congress, where fiscal adjustment instead. he received the presidenti­al His first measures will be sash from his predecesso­r announced at a news conto the chant of “freedom, ference Monday morning, freedom.” according to his spokesman.

He then delivered a somSigns of Milei’s pragmaber message to the nation, tism became apparent with warning that Argentines his first cabinet choices, will have to endure addi- which pleased investors tional pain while he works and triggered a rally in the to pull the country from nation’s dollar bonds and the economic crisis inher- stocks. ited from his predecesso­r. He appointed Patricia The outgoing administra- Bullrich, a former advertion of Alberto Fernandez sary who joined forces with has planted inflation that him after being defeated in could reach 15,000% if the the first round of the presgovern­ment doesn’t change idential election, to be his course, he said. security minister. And he

“They’ve ruined our handed the crucial econlives,” Milei told a large omy ministry job to Luis public waiting for him out- Caputo, a former finance side Congress. “There’s no chief and central bank presmoney.” ident who also negotiated

He reiterated his pledge with holdout debt investo cut spending rapidly, say- tors and the Internatio­nal ing “there’s no alternativ­e, Monetary Fund during the nor much time.” The econ- administra­tion of Mauriomy will worsen in the short cio Macri. term before turning around, Caputo then tapped his he added. longtime colleague Santi

Attending the ceremony ago Bausili, a Deutsche Bank were the Latin American and JPMorgan Chase & Co presidents of Uruguay, Par- veteran, to run Argentina’s aguay and Chile, alongside central bank.

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Milei

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