There is an article fromEconomist on Javier Milei which, obviously, the Italian newspapers were careful not to relaunch in the Bel Paese too. The reason? The comments towards the Argentine president who our learned editorialists had accused of being crazy, fascist and reckless before he could even put his ideas into practice were too favourable. Which are indeed “revolutionary”, as theEconomistbut not necessarily crazy.
In short: like every wrong prediction by Italian editorialists, the South American country should have been in total chaos today and instead “its two audiences, the markets and the Argentines, are very happy”. Rating agencies have halved their default risk estimates, settling at the lowest level in the last five years. And Milei increases his popularity despite the barrage of layoffs and cuts in public spending. After all, inflation weighed from 13% like a hidden tax on all Argentinians and today, after less than a year of Milei’s treatment, it has dropped to 3%. “The reduction – analyzes theEconomist – is based on Milei’s brutal cost cutting. This impresses the markets. He campaigned with a chainsaw, then ran a primary surplus in his first month – and every month thereafter.”
Another lap, another race. MIilei also sought to cut red tape, from air travel to rent, including divorce and purchasing satellite internet. “He demonstrated that the constant expansion of the state is not inevitable.”we read in the Economist editorial. Of course it’s not all roses and flowers, like every “revolution” or medical cure. “The cuts hurt – explains the weekly – The economy entered into recession this year and unemployment has increased. The percentage of poor Argentines has risen to 53%, compared to 40% in 2023. But the recession seems to have hit bottom.” It was expected. But Milei is betting everything on growth which, he assures, should arrive soon and “contribute to alleviating poverty and unemployment, even if inflationary pressure will increase”. Hence the idea of new “investment incentives, such as multi-decade tax breaks and customs exemptions”.
On the foreign field, despite the harsh words during the election campaign against China And Brazilas president Milei is maintaining an “institutional responsibility” and when good opportunities arise, such as the sale of gas to Lula, he has never held back.
Of course the work is not finished. There is the whole issue of the peso exchange rate which could present some problems for the executive. And finally, it is not certain that in the end the “Milei cure” will produce the miracles that Argentina needs. But one thing is certain: the feared disaster theorized by Italian experts, including the analyst who hypothesizes the increase in infant mortality, has not manifested itself. This is certified byEconomist.