Argentina’s Milei Defies the Congress With a Bold Economic Pact

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“I want to tell everyone here and watching that if what you seek is conflict, you will have conflict”, Javier Milei declared as he challenged Argentina’s Congress. He arrived at the legislative assembly in a style borrowed from the United States, presenting himself as an anarcho-capitalist determined to break free from a political order he views as entrenched in corruption. He framed the moment as a call for unity, inviting the leadership of former presidents, provincial governors, and opposition party heads to join a ten-point pact. The pledge echoed the ten commandments he had outlined on his social feed, written in Hebrew letters, with a date set for May 25. Before any agreement could be signed, he pressed for approval of the omnibus law that had stalled in the lower chamber. Former president Mauricio Macri signaled openness to signing the accord.

The so-called new social contract centers on protecting private property as a fundamental right, establishing a strict fiscal balance, and reducing public spending to historical lows around 25 percent of GDP. It also calls for a comprehensive tax reform, a revamped federal tax system, the exploitation of natural resources, a modern labor policy that favors formal work, and a reform of the pension system to allow private sector participation as seen in the nineties. A structural political reform and a commitment to open international trade are presented as essential steps to restore Argentina as a player in the global market.

Milei asserted that he does not seek confrontation. He urged lawmakers to embrace a program that must be followed, even as he admitted he harbored limited optimism. He warned that choosing a confrontational path would unleash challenges of a different magnitude for the political class.

Duel exposure persisted through the address, which lasted about an hour, balancing offers of dialogue with bursts of sharp rhetoric. Milei invited Cristina Fernández de Kirchner to sign the agreement while labeling her administration as among the most controversial in recent memory. He suggested disqualifying candidates who have been convicted of corruption in second instance from national elections, stripping them of any benefits from their time in office. Fernández de Kirchner has faced a six-year sentence in a case involving public works contracts, a process she has described as political vengeance carried out without proper evidence.

Milei, closely followed by his supporters, did not shy away from highlighting data that critics say are disputed. He claimed the country faced severe economic stress, with a large portion of the population living in poverty and inflation fluctuating dramatically in the recent months. He described a policy approach that he claims has averted hyperinflation through drastic reductions in state spending, while acknowledging difficult days as firms downsize and consumer purchasing power shrinks. He framed the current moment as one where patience and trust are needed to witness the benefits of economic stabilization and ongoing reforms.

No dollarization was on the agenda when Milei spoke to the Congress. He indicated that his focus included a package of anti-elite laws that would liberalize labor markets, curb the influence of unions, and privatize pension funds, while criticizing the state as a bureaucratic machine prone to corruption. He argued that the state often acts as a criminal enterprise designed to extract bribes at every step. The unions, already mobilized in opposition to proposed cuts, would need to adapt to a new framework every four years, with leaders barred from reelection. Outside the building, protests erupted with tear gas and clamor from residents who voiced disagreement with the direction of policy. Small demonstrations echoed across several neighborhoods in the capital.

In Córdoba, Governor Martín Llaryora warned that reaching May under such conditions would be tough, while Maximiliano Pullaro, who governs Santa Fe, stressed the importance of dialogue and mutual respect without coercion. Beyond the speech, the government signaled plans to revive elements of the failed omnibus law and to push other initiatives from the president in the coming week as it seeks to reclaim legislative momentum.

Regional reactions cross into the Andean region as well. Colombian President Gustavo Petro spoke out before Milei’s remarks, arguing that deepening a neoliberal framework would fail to bring wellbeing. Petro linked freedom to overcoming need and warned against letting market power dominate political life. He argued that libertarian policies risk repeating historical mistakes and harming social progress, challenging the notion that market freedom alone can secure prosperity.

The exchange underscored how political rhetoric in Buenos Aires resonates beyond borders, shaping conversations about how far a country should go in reshaping its economy while balancing with social protections. Observers noted the tension between a push for rapid reforms and the realities of social strain, raising questions about feasibility, governance, and popular support. The dialogue continues as lawmakers deliberate the proposed reforms and weigh the risks and promises of a bold political strategy that seeks to redefine the Argentine state and its role in the regional economy.

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