“God bless the Argentinians and may the powers of heaven be with us.” President Javier Milei pressed ahead with the second part of his economic plan, drawing parallels to the Book of Maccabees and highlighting a chapter about Jewish resistance to Greek rule in 166 BC. He frames the changes as a return to Argentina’s fundamental strengths, insisting that change starts today.
Milei outlined the broad strokes of a program with his cabinet. The Decree of Necessity and Urgency (DNU) includes more than 300 measures aimed at freeing the country from an oppressive legal framework that Milei argues is suffocating growth. The government plans to move forward with decisions that bypass Congress, with the aim of ending the current wage and labor regime, privatizing state enterprises, and rolling back rules that let the state intervene in markets during episodes of price instability. He claimed the DNU would restore Argentina to a moment of national pride he identifies with the early 20th century, a period some historians view with skepticism. He also argues that the agricultural export boom of 123 years ago never truly returned after a long era marked by recurrent crises driven by fiscal deficits.
Days later, after devaluing the peso by nearly 119 percent, the government opened a path to rapid price increases, with inflation forecasts hovering around 30 percent monthly. Protests erupted in several neighborhoods of Buenos Aires, signaling the fragility of the honeymoon with urban elites. A poll by Circuitos suggested 42.2 percent of Argentines are optimistic about the government’s chances, while more than half feel uneasy about the path forward.
radical turn
Milei operates under a tight timetable, reflecting the challenges of a leader with a background in business and a limited window to enact reform. Unlike Mauricio Macri, who pursued gradual reforms, Milei favors rapid changes. The DNU also repeals rent laws that allowed leases to be denominated in dollars and tied to supply, and it emphasizes the protection of private property as a core principle. In this view, any state monitoring of rules or price behavior that could benefit national companies is framed as harassment of private enterprise.
Critics in the Peronist camp describe the move as a radical shift. Mayra Mendoza, mayor of Quilmes, called it an industrial slaughter, while Andrés Larroque warned that the government seeks to turn the state into an occupying force that claims sovereignty over the homeland. Former minister Daniel Filmus warned that the plan would worsen inequality and hunger.
The government frames its move as a shift toward economic liberalization, arguing that the private sector should take the lead and the state should withdraw from certain sectors. The DNU envisions privatizing healthcare delivery, marketing football as a private enterprise, and expanding satellite internet and tourism through private providers. It also proposes reforms rooted in a reinterpreted Magna Carta of 1853 and its 1994 reform, arguing that past policies expanded state power to the detriment of citizens. Supporters say these changes are needed to restore economic vitality and competitiveness. Earlier, Milei asserted that Argentina had already endured severe inflation and currency devaluation without dramatic political restructuring, and that the current budget deficit is the real impediment to growth.
“We have eliminated several layers of currency controls, faced two hyperinflations, and now sit with the highest tax pressure in the world,” Milei stated. He argued that debt-fueled deficits and the risk of default depress investment and depress real wages. Critics warn that these steps could lead to deeper social strain if not paired with social protections.
Congress is the scene of discussions
The scheduled announcement on Wednesday marked another milestone in a long and contentious reform drive. Milei plans to bring multiple proposals to Parliament, including economic emergency measures that will require cross-faction support to gain passage. Proposals include reversing some income tax reform benefiting the middle class and establishing a new anti-money laundering law.
“There are difficult measures and no other option,” said Martín Menem, speaker of the House, expressing optimism that the far right and traditional parties can line up the votes needed to advance the agenda. The debates in Congress will test the capacity of a polarized system to enact sweeping changes that will shape Argentina’s economic trajectory in the coming years. [Attribution: analysis of Milei’s policy agenda].