Inflation accelerates Argentina's reforms
Only in December, the price growth rate increased by 25.5%. In November, it was 12.8 percent.
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Still, December inflation was lower than government forecasts, which expected prices to rise by 30%. Even before the figures were released, the president said that if the reading “approaches 25 percent,” it would be a “tremendous success” for his cabinet.
“Dismal record” of inflation.
Javier Millay assessed that the public “knows about the economic disaster left by the previous government”. He added that the nation “knows that it will have to go through difficult times to overcome it.”
In its article, the newspaper La Nacion notes that inflation in Argentina in 2023 was one of the highest in the world and the highest in South America. The rate of price increase was “higher than in Venezuela,” a country ruled by the regime of Nicolas Maduro and plunged into a deep economic and humanitarian crisis. The newspaper calls it a “sad record”.
In his presidential inauguration speech, Javier Millay introduced a program of belt-tightening and acknowledged that society would be hit hard by the reforms in the initial period. However, he assessed that this was necessary to protect the country from total collapse. It is estimated that about 40 percent of Argentina's population lives below the poverty line (about 20 million people).
Resistance to reforms is growing
However, a growing social group opposes the program ordered by the new government. At the beginning of the year, the Argentine Chamber of Labor rejected the possibility of introducing many of the most important points of this program through presidential decrees, which aim, among others: Deregulating labor laws and eliminating or limiting most other employee rights – including the right strike and organized a trade union protest. It also disagreed with the employer's acceptance of the existing powers of the Labor Court.
In response to these ideas of government On January 24, an Argentine general Confederation Labor announces union protest and rail strike Against government plans to restrict trade union rights. Javier Millia's cabinet in Argentina makes the implementation of plans for a radical reconstruction of the economy and social relations dependent on their implementation.
They will also be supported by Argentina's most important cultural institutions, including: the National Theater Institute, the National Film Institute and the Public Library Commission.
January 15th was declared a “National Day of Struggle for Workers' Rights” by the influential State Employees Association, and the General Labor Center declared January 24th a national day of protest against the president's “excessive job cuts.” government. According to him, the reduction will begin symbolically with the dismissal of a thousand and one hundred employees of the municipal government of Buenos Aires.
It's bad in Argentina and no one denies that it needs to change. If things stay the same, we will have many new poor due to the shrinking lower middle class, more extreme, structural poverty, people dependent on state aid – said the director of Argentina's Social Debt Observatory (ODSA), Prof. Augustine Salvia.
Argentina excludes itself from the alliance with Russia
However, in the final stretch, on December 29, 2023, Argentina, more specifically the new, controversial president, has resigned from the bloc. The leader of Argentina informed his compatriots about this and said that “he does not consider it appropriate for Argentina to join this group on January 1, 2024.”
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