Argentinian President-elect Javier Milei was sworn in on Sunday, where he issued a warning in his maiden speech that there was no alternative to a "shock adjustment" in the economy.
The far-right libertarian economist said there was no way to avoid a painful fiscal shock in fixing the nation's worst economic crisis in decades. The Argentinian president's remarks came as inflation steadily approached 200%.
Javier Milei Sworn In
Milei's comments about the economy were made while on the steps of Congress after taking the presidential baton and sash. He spoke to a crowd of supporters who cheered despite him saying that the economy would become worse in the short term, saying that "there is no money."
The 53-year-old former TV pundit shot to popularity after expletive-ridden tirades against rivals, China, and the pope. He took over from Peronist Leader Alberto Fernandez. As per Reuters, the latter's government was hounded by failures in its attempts to rein in soaring prices across the country.
Milei noted that the outgoing government left the country on track towards hyperinflation, saying that they would have to do everything they could to avoid such a catastrophe from happening. While the new president's speech lacked details, he said that key steps to this would include a fiscal adjustment equivalent to 5% of the nation's GDP.
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His presidential victory marks a gamble for Argentina as his shock therapy economic plan has gone down well with investors and could stabilize the embattled economy; however, it also risks putting more people into hardship, with over two-fifths already being in poverty.
Voters who drove Milei to his presidential victory in a November run-off against a ruling Peronist coalition candidate said they were willing to take a chance on his sometimes radical ideas. These include shutting the central bank and dollarizing the nation's currency.
Fixing the Economic Crisis
Milei took to wielding a chainsaw during his campaign to showcase his apparent plans to slash spending. According to CNN, his sudden rise in politics surprised the country's political establishment and drew comparisons to former United States President Donald Trump.
His predecessor, Fernandez, presided over his swearing-in ceremony before the nation's Congress in Buenos Aires. During his first speech as president, he said the country's people have overwhelmingly expressed their desire for change.
Several prominent figures attended Milei's swearing-in ceremony, including Ukrainian President Volodymyr Zelensky and former Brazilian President Jair Bolsonaro. After the event, he greeted supporters from the iconic Casa Rosada and sang a short song.
He told the crowd that he wanted them to be aware that the government would begin the reconstruction of Argentina after more than a century of decline. Milei said they would redraw the ideas of freedom and warned of hardships moving forward.
Speaking to tens of thousands of supporters outside the country's Congress, Milei also compared his shock election with the start of the collapse of the Soviet Union. He noted that the recent elections represent a tipping point for Argentina, said The Guardian.
