The administration of Argentina’s new president Javier Milei said Tuesday that contracts for more than 5,000 employees hired this year before he took office will not be renewed.
The move was part of a sweeping plan of cuts and devaluations announced by the new president since he took office on 10 December to transform Argentina’s struggling economy.
The contracts of other civil servants who were hired before 2023 will be renegotiated. The introduction of the 2023 deadline is apparently aimed at combating the practice of outgoing presidents increasing their salaries in their final year in office.
With inflation expected to reach 200 per cent by the end of the year, Milei has promised to cut government regulation and salaries and allow privatisation of state-owned enterprises to boost exports and investment.
The cuts have already sparked protests, but Milei has vowed to continue to deliver what he has promised. He noted:
“The goal is (to) start on the road to rebuilding our country, return freedom and autonomy to individuals and start to transform the enormous amount of regulations that have blocked, stalled and stopped economic growth.”
More than 300 changes announced earlier by the president involve the privatisation of many state-owned companies, as well as the relaxation of protections for tenants, workers and buyers.
The measures include a 50 per cent devaluation of the Argentine peso, cuts in energy and transport subsidies, and the closure of some government ministries. These measures come against a backdrop of soaring inflation and a declining economy.
