Javier Milei will be sworn in as Argentina's president later today, as the country steels itself for harsh spending cuts and economic reforms aimed at curbing rampant inflation.
The 53-year-old libertarian economist has vowed there will be no "half-measures" as he tackles decades of overspending, debt, and convoluted currency controls in Latin America's third-biggest economy.
The government led by the libertarian, who will accompanied by Victoria Villarruel as vice-president, will last until 2027, in accordance with the four-year term established by the National Constitution.
After taking the oath of office on Sunday, Milei will give his first speech as president from the steps of Congress. He will later swear in a Cabinet of nine ministers – a major slimdown from the current 18.
He has said his first set of measures will be presented to Congress in a matter of days.
Today's ceremony and presidential handover is a landmark moment for Argentina, which celebrates 40 years of democratic rule on the same day.
World leaders
The inauguration in Buenos Aires is bringing together a diverse handful of world leaders, including Ukraine's Volodymyr Zelenskyy and Hungary's nationalist Prime Minister Viktor Orban – the only EU leader who has maintained close ties to the Kremlin.
Chile's leftist leader Gabriel Boric, Ecuador's Daniel Noboa and the King of Spain, Felipe VI, are also attending, as is Brazil's former president Jair Bolsonaro.
US President Joe Biden will not attend, but he has sent a delegation of officials to represent him.
Brazilian President Luiz Inácio Lula da Silva also announced his absence and has sent Foreign Minister Mauro Vieira as his representative.
Milei met with King Felipe, Peña and US Energy Secretary Jennifer Granholm, the head of Biden's delegation, on Saturday.
"They discussed the shared priorities between the two countries in the defence of human rights, investments in clean energy, and regional and multilateral cooperation," the US Embassy in Buenos Aires said.
Milei received the Spanish monarch king at the Palacio San Martín, the formal seat of the Foreign Ministry. No further details were provided.
In a statement issued Saturday, the United Kingdom said it would be represented at the event by its Minister for the Americas, the Caribbean and Overseas Territories, David Rutley.
Meteoric rise
Bearing in mind the magnitude of the challenges facing the next government, most analysts expect Milei's first speech to outline the "shock" measures planned for the coming months.
Milei's inauguration caps a meteoric rise for the outspoken economist, a former television panelist who entered politics only two years ago after grabbing public attention with his rants against the "thieving political caste."
With his deliberately dishevelled mop of hair and rock star persona, he would wave a powered-up chainsaw at political rallies, vowing to slash public spending and a bloated Cabinet.
He vowed to "dynamite" the Central Bank, replace the ailing peso with the US dollar, and ditch key government ministries.
His red-faced fury struck a chord with voters fed up with economic crisis. Inflation has hit almost 140 percent year-on-year and 40 percent of the population lives in poverty.
"Like many of his predecessors, Milei will take office with the warning lights all flashing red," said Benjamin Gedan, director of the Argentina Project at the Washington-based Wilson Center.
But for Argentines, the future is mired in uncertainty over what exactly their new president plans to do.
With few lawmakers in Congress the hard reality of politics has quickly set in, and Milei has softened many of his stances, and allied with politicians he previously insulted, incorporating some into his cabinet.
Talk of shutting the Central Bank, dollarisation, and welfare cuts have dissipated.
"Milei 2.0 will still face an uphill climb, but he appears to have adopted a more pragmatic agenda and sought the advice of more experienced political figures," said Gedan.
However, with Central Bank reserves in the red and no credit line Milei is facing "bare cupboards," added the analyst.
"His rescue strategy, including a rapid downsizing of the government, will be tough to swallow for a long-suffering population. Either way, the next few months will almost certainly see social and political turmoil."
'Stagflation'
Among the questions hanging over Argentines' heads in the coming days will be whether Milei will devaluate the strictly controlled peso and loosen the currency controls which have birthed a multitude of dollar exchanges.
Economist Victor Beker, a professor at thf the University of Belgrano, said the first "litmus test" for Milei will be if he actually halts the money-printing by the Central Bank that he has so derided, which funds much of the government's spending.
Milei has warned that it could take between 18 and 24 months to bring the country's inflation under control, warning of months of rising prices coupled with economic stagnation.
"There is going to be stagflation, because when you do a fiscal reordering, it will have a negative impact on economic activity," he added.
For 2023, the International Monetary Fund has projected a contraction of 2.5 percent in Argentine GDP.
Milei has said his first priority was eliminating the budget deficit – 2.4 percent of GDP at the end of 2022 – by the end of next year.
Many Argentines are worried about what comes next.
"I think inflation will continue, perhaps worse than before. I see nothing good in the future," said Martina Soto, 66, ahead of the inauguration.
In contrast, Milei supporters were out on the streets on Sunday morning, celebrating his arrival to power.
The inauguration ceremony
Inauguration schedule:
- 11.40 hrs: Milei's approximate departure time from Hotel Libertador
- 12.00 hrs: Arrival at the National Congress
- 12.10 hrs: Signing of the book of distinguished visitors
- 12.20 hrs: Ceremony and handover ceremony at the National Congress
- 13.30 hrs: Speech on the steps of Congress
- 13.40 hrs: Return to the Casa Rosada by convertible
- 14.00 hrs: Greeting invited presidents and former presidents
- 14.30 hrs: Reception with foreign presidents and authorities
- 17.30 hrs: Swearing in of ministers in the White Hall
- 19.00 hrs: Interfaith Ceremony at the Cathedral
- 20.30 hrs: Gala performance at the Teatro Colón with excerpts from the opera Madama Butterfly.
– TIMES/AFP/PERFIL
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