By Lucila Sigal

A Year of President Javier Milei

BUENOS AIRES (Reuters) – Argentina's libertarian President Javier Milei presented a bleak vision in his inaugural speech a year ago during an economic crisis, stating there was "no money" and pledging shock therapy for the economy, warning that conditions would worsen before improving.

Despite the tough talk, the crowd in front of Congress cheered him on.

A year later, Milei has managed to maintain fervor and avoid large protests, despite implementing severe spending cuts that have adversely affected the economy and increased poverty rates.

Milei, characterized by his bombastic style and shaggy hair, is marking one year in office this week. He has gained global recognition as a spokesperson for free markets and the political right, receiving support from high-profile figures like Tesla billionaire Elon Musk and U.S. President-elect Donald Trump.

At home, Milei is leading a risky experiment, transforming Latin America's third-largest economy into a live test of libertarian free-market principles and deregulation.

Currently, Milei is defying expectations: polling numbers remain high, monthly inflation has decreased from 25% to 3%, markets are buoyant, and currency market distortions have lessened. However, the real economy faces downturns due to spending cuts, with half of Argentina's population living in poverty.

Political analyst Facundo Nejamkis pointed out that massive cuts have induced a major recession, yet Milei still retains the support of his voters, marking him as a distinct figure in politics.

Milei's support stemmed from widespread discontent with traditional parties that contributed to years of recession and fiscal issues, granting him greater latitude and time to implement his reforms.

CHAINSAW AUSTERITY

Milei's ascent from an outspoken economist to president has stirred the nation and reverberated internationally. His austerity measures, state reductions, and anti-woke comments have made him a figure of admiration for conservatives and free-market proponents.

Some supporters liken him to a "heavily caffeinated version of Donald Trump." If successful, he could reshape Argentina's political landscape after years of large government, potentially increasing his congressional support in upcoming mid-term elections.

Nevertheless, his government faces a challenging phase ahead: revitalizing the stagnated economy, removing tricky currency controls, and managing rising dissatisfaction due to the high cost of living and cuts affecting vulnerable populations.

Protesters have raised concerns about severe budget reductions affecting the elderly, public workers, and essential services.

Despite these struggles, some Argentines remain cautiously hopeful, reflecting on the tough times they've endured, asserting faith that Milei's measures could lead to economic recovery.

PRAGMATIC STREAK

As the world's top processed soy exporter and a key player in lithium and shale production, Argentina has seen its share of economic disappointments. Milei, considered a political outsider, has shown pragmatism by forming alliances with mainstream conservatives to navigate Congress.

Analysts note his unexpected pragmatism, which has aided his leadership, as he has moderated his Cabinet and softened his stance toward trade partners like China. His direct communication style and theatricality have kept him in the public eye and have been effective in passing off pain as necessary for recovery.

In closing, Milei's victory has fostered a belief among many that austerity could be the tough yet necessary medicine to improve Argentina’s fortunes, generating cautious optimism for the future.

> “We are coming out of a very bad time, tragic for the country,” said Juan Agustin, expressing optimism despite recent economic declines.