News of spending

Milei confirms his ‘chainsaw’ will keep running next year

27-11-2024 15:52 “Full speed ahead,” says Argentina's president, vowing that public spending cuts will continue into 2025.

POLITICS – ANALYSIS

Foreign Ministry set to meet chainsaw after Mondino's failure to cut costs

05-11-2024 10:32 The now former foreign minister not only displeased President Milei, she also failed to cut costs. Mondino’s lack of budget-slashing means La Libertad Avanza’s chainsaw will now descend on the Palacio San Martín.

by Juan Pablo Kavanagh

BLOOMBERG - ANALYSIS

Leftist leaders are failing their promises across Latin America

21-10-2024 14:20 The changing political landscape in Latin America, highlights the decline of leftist governments due to economic challenges, crime, and social reform failures, and the rise of more business-friendly, right-leaning administrations.

ECONOMIC OUTLOOK

World Bank highlights falling inflation but warns of economic decline

09-10-2024 17:23 Latest report forecasts 3.5% contraction for Argentina's economy, but says GDP will soar by 5% in 2025.

education funding row

Congress opens session on Milei's veto of university funding bill

09-10-2024 12:32 Argentina's lower house Chamber of Deputies will on Wednesday decide if President Javier Milei's veto of a law allowing greater funding to state universities will be upheld.

EDITORIAL

It’s the education, stupid

05-10-2024 06:24 When presenting the 2025 Budget in mid-September, Milei defined his fundamental fiscal principle as first defining the available revenue and then adjusting the spending to it – modernising the university system to that end could be an interesting application of that principle. But instead his primitive proposal is literally to cut university spending in half with his chainsaw.

SCIENCE & TECHNOLOGY

Scientists fear underfunded research on verge of collapse

01-10-2024 11:13 Drastic budget cuts by President Javier Milei's government are damaging scientific research, with the lack of state funding opening the door to a potential exodus of researchers.

POLITICS & ECONOMY

Privatisations, relaunches and retirements – Milei’s plan for state media

26-08-2024 19:14 President Javier Milei has managed to shutter the Télam news agency and is attempting to downsize and sell off a host of Argentina’s state media outlets – but are his plans working? And what is the “relaunch” his administration is planning?

by Julian D'Imperio

EDUCATION

Teaching staff at public universities stage 48-hour strike

20-08-2024 12:06 Strike at state universities gets underway with no classes scheduled for Tuesday and Wednesday; Unions claim the government's wage renegotiation proposal is insufficient as Milei administration looks to cut costs.

POLITICS & SOCIETY

Gender policies hit by chainsaw in Milei’s Argentina

15-08-2024 07:45 Since assuming office on December 10, 2023, President Javier Milei’s government has slashed and eliminated programmes designed to help women suffering from violence. Among them, the elimination of a ministry, staff lay-offs and cuts to the team staffing the 144 emergency hotline.

by Juan Pablo Kavanagh

ECONOMIC INDICATORS

Social indicators cast doubt over Milei's 'catastrophe' averted claim

04-07-2024 13:09 President Javier Milei recently stated that the government’s social policy is “extremely good” and it had help prevent a “catastrophe.” Yet the government's own data and reports produced by private institutions indicate most social indicators have recorded a step backwards since he took office.

by Agustina Bordigoni

JUSTICE SYSTEM & PRISONS

Milei slashes budget for legal centres in favour of prison spending

29-06-2024 04:25 Argentina’s Justice Ministry announces closure of 81 Centres of Access to Justice nationwide; Milei government boosts budget for the ‘Criminal Policy’ programme by 963% in move to “modernise Penitentiary Service” and “improve the situation of persons deprived of liberty."

by Agustina Bordigoni

FILM & CINEMA

National cinema raises its voice at Cannes against Milei’s cutbacks

22-05-2024 15:26 Creators of award-winning Argentine productions use their international platform at prestigious French film festival to vocalise anger at industry cutbacks and Milei government’s austerity measures.

Marcha Federal Universitaria

Massive crowds march against Milei’s cuts to state universities

23-04-2024 21:08 Large crowds turn out nationwide for march in defence of universities and state education; One of biggest rallies yet of President Javier Milei's government, with estimates ranging from 100,000 to half a million.

CULTURE

Like a bad movie: Argentina's culture industry suffers under Milei

20-04-2024 07:39 President Javier Milei's 'chainsaw' cutbacks are threatening Argentina's Oscar-winning film scene, publishing industry and music industry.

EDUCATION

UBA students and teachers demonstrate against Milei's cutbacks

19-04-2024 10:25 Students and teachers of the University of Buenos Aires protested with public classes in the street and symbolic embraces of buildings against the government’s drastic austerity.

DEFENCE SPENDING

Petri hails Milei's leadership as he inks deal for F-16 jets in Denmark

16-04-2024 12:52 Argentina’s Defence Minister offers gushing praise for President Javier Milei as he visits a Danish air base to finalise future purchase of 24 F-16 fighter jets from Denmark.

POLITICS – ANALYSIS

Attitudinal shifts and the risks of upheaval

06-04-2024 06:24 Milei’s “negative rhetoric,” sustained by his synthetic power, is useful in setting the agenda, but it doesn’t put food on the table.

by Agustino Fontevecchia

POLITICS & ECONOMY

Kicillof announces wage increase for state workers

18-03-2024 15:11 Salaries of state teachers, police officers and public employees will rise by 13.5% this month, orders Buenos Aires Province Axel Kicillof, in defiance of President Javeir Milei’s cost-cutting plans.

EDUCATION

Universities challenged: Chancellors warn Milei government money will only last until May

14-03-2024 11:44 President Javier Milei’s government is in the grip of a battle with universities over the education budget in 2024. Amid growing complaints, chancellors despair at condemnation from Casa Rosada and Presidential Spokesman Manuel Adorni.

by Giselle Leclercq

SCIENCE & TECHNOLOGY

Nobel laureates warn budget cuts are 'cancelling' research

06-03-2024 22:31 Sixty-eight Nobel laureates urge President Javier Milei to restore budgets for science and technology that have been cut under his drive to slash public spending.

Brazil and Wall Street

Lula pulls off rare trick twice, wooing Wall Street and the poor

26-02-2024 11:09 In his first year back in power, Luiz Inacio Lula da Silva has again managed to keep both low-income voters and Wall Street investors happy

LABOUR TENSIONS

Strikes pile up amid sting of Milei’s shock therapy

21-02-2024 16:03 Rail service, healthcare and schools all face disruption; Unions pushing back against government austerity measures.

ECONOMIC INDICATORS

Brazil’s economic activity caps 2023 with better-than expected growth

19-02-2024 14:05 Brazil’s economy grew more than expected in December, indicating activity is still showing some resilience to high interest rates as President Luiz Inacio Lula da Silva readies higher government spending.

IMF DEBT PROGRAMME

IMF authorises US$4.7 billion loan tranche, says Milei will remove currency controls

01-02-2024 18:25 International Monetary Fund signs off on fresh loan disbursement and reveals Argentina will lift currency controls this year – though it warns political and social unrest may lie ahead.

POLITICS & ECONOMY

Chainsaw Plan Round 2: Government looks to deepen austerity

14-01-2024 10:19 Economy Minister Luis Caputo assures that there has been no fiscal shock so far in Argentina and that there is still room for further tightening. If President Javier Milei’s ‘Omnibus law’ does not pass through Congress, cutbacks will continue for state personnel, with cuts in overtime, the freezing of salaries, and the non-renewal of expiring contracts.

by Juan Pablo Kavanagh

BLOOMBERG – FEATURE

Argentina’s ruined railways will force Milei to confront poverty

21-12-2023 00:29 Those living off state subsidies in ghost towns abandoned by the once-robust train service fear the pain of the new president’s spending cuts will be acute.

EMERGENCY MEASURES

Milei devalues peso by 54% in first batch of shock measures

12-12-2023 19:46 Economy Minister Luis Caputo devalues peso by 54% and announces a swathe of spending cuts President Javier Milei’s shock-therapy programme gets underway.

CROSS-BORDER SHOPPING

Uruguayans pile into Argentina to spend record US$1 billion

30-10-2023 11:11 Uruguayans are taking advantage of Argentina's deep economic crisis with food, vacations and shopping costing a fraction of the price back home.

Election 2023

Massa's gradual approach versus Milei's radical plans

24-10-2023 13:58 Presidential candidates, set to face off in a run-off election on November 19, have diametrically opposing views on everything from economic to foreign policies, and most notably on the size and role of the state..

DEFENCE

Argentina buys four Norwegian aircraft to patrol South Atlantic

19-10-2023 00:21 Defence Minister Jorge Taiana announces purchase of four P3 ORION aircraft to be used for vigilance and search and rescue missions in the South Atlantic.

by Cecilia Degl'Innocenti

WARNING FROM FUND

IMF warns Argentina not to dawdle on incremental economic reform

14-10-2023 07:47 Argentina has no time to make gradual economic adjustments as it faces soaring consumer prices and its sixth recession in a decade, says top IMF official.

LATIN AMERICA

Chile President Boric plans 3.5% spending hike, vows economic revival

29-09-2023 09:22 Chile's left-wing President Gabriel Boric says he plans to raise public spending by just 3.5Y next year, less than in 2023, as the government struggles to deliver on its key policy proposals.

International Monetary Fund

IMF says Argentina’s spending adds risks to US$44-billion deal

28-09-2023 15:41 “The recently adopted policy measures and announcements add to Argentina’s challenges,” IMF chief spokesperson Julie Kozack said at a press conference in Washington.

economy

How Javier Milei would cut Argentina spending by 14% of GDP

25-09-2023 09:15 Javier Milei’s fiscal belt tightening would focus on slashing expenditures on subsidies for utility bills, like gas, electricity and water, as well as federal government transfers to poor provinces.

ELECTION 2023

Rodríguez Larreta plans spending cuts to help peso

13-07-2023 15:51 Juntos por el Cambio presidential hopeful plans to cut spending by 4% of GDP; Move intends to allow peso to weaken gradually to level between official and parallel rates, reveals Lacunza.

Living with inflation

Spend now, worry later: no point saving in inflation-stricken Argentina

15-06-2023 15:04 Packed restaurants, long lines outside the theatre, concerts that sell out in hours – Argentines with purchasing power are responding with a frenzy of consumption in the face of soaring inflation.

ELECTION 2023

Córdoba leads way as politicians splash cash on social media

26-04-2023 22:59 Data showing the biggest spenders on Meta over the last 90 days reveals huge investments from Córdoba; Schiaretti and Lousteau coughing up the most, though keep an eye on ‘satellite’ accounts used to hide spending.

by Julian D'Imperio

BLOOMBERG

Brazil’s faltering economy endangers Lula’s ‘barbecue and beer’ promise

03-03-2023 12:47 Luiz Inácio Lula da Silva promised to bring prosperity back — “barbecue and beer” for all — if he returned to Brazil’s top job. Two months into his presidency, the economy he inherited is cutting his honeymoon short.