The government of Argentina’s new president, Javier Milei, announced Tuesday that it will not renew the contracts of more than 5,000 civil servants hired before taking office this year.
The measure is part of a plan of cuts and devaluations that Milei has announced since taking office on December 10 to transform Argentina’s struggling economy.
The contracts of other officials hired before 2023 will be reviewed, authorities indicate.
The 2023 cut is apparently intended to end the practice of outgoing presidents increasing payroll costs in their final years.
With inflation expected to reach around 200% by the end of the year, Milei pledged to reduce government regulations and labor costs and allow the privatization of state-owned industries as a way to boost exports and investment.
The cuts have already led to protests, but Milei has promised to go further.
“The goal is to begin the path to rebuilding our country, returning freedom and autonomy to individuals and beginning to transform the enormous amount of regulation that has blocked, paralyzed and halted economic growth,” said Milei.
The measures announced include a 50% devaluation of the Argentine peso, cuts in energy and transport subsidies and the closure of some ministries. The measures come at a time of rising inflation and increasing poverty.
Argentine Presidential Spokesman Manuel Adorni stated during a press conference today that the new government has replaced the current Argentine Republic Import System (SIRA), implemented by the previous government, with a new State Import System (SEDI).
According to him, the aim of the new model, published in the Argentine official bulletin, is to eliminate the bureaucracy for the import trade in the South American country.
The import system adopted by the previous government provided for a discretionary system of import licensing.
With the new model, it will not be necessary to grant prior licenses, but only declarations, to carry out a tax analysis of importers.
According to the current government, the new system will correct “the market distortions” that led to SIRA.
Source: DN
