President Javier Milei claims inflation will end by mid-2024, while unions protest his austerity measures. Demonstrations highlight growing discontent among citizens, echoing critical socio-economic challenges as protests against his policies increase amidst rising tensions.
Amid Union Turmoil, Milei Promises End to Inflation
President Javier Milei has made headlines by claiming his administration could bring an end to Argentina’s persistent inflation by mid-2024. This statement, however, contrasts starkly with the rising tensions from unions who are vocally opposing his government’s austerity measures, already perceived as harsh by many citizens. The tug-of-war between the administration’s fiscal promises and the on-ground realities continues to unfold, particularly as more labor unrest brews.
In a speech delivered at the EXPO EFI 2025 event in Buenos Aires, Milei, in a rather optimistic tone, assured attendees that “inflation has its sell-by date for the middle of next year and now is the time to think of growth.” He went on to declare the stabilization phase over, though he candidly noted that “that does not mean things are perfect,” acknowledging the challenges ahead.
The president took the opportunity to tout his achievements, including a recent US$20-billion deal with the International Monetary Fund (IMF), brushing aside critics who had doubted the feasibility of such a deal. Additionally, he praised the recent easing of currency controls, which had hindered saving opportunities for many Argentinians since 2019. “The ‘cepo’ is a monstrous tool,” he remarked, shedding light on the burdensome restrictions impacting monetary stability.
However, protests erupted just hours after Milei’s speech, organized by labor unions against the very austerity measures he supports. On the eve of Labor Day, thousands of union members—led by the powerful Confederación General del Trabajo (CGT)—marched peacefully, though the event concluded with 14 arrests reported by local news agencies. The CGT, Argentina’s largest labor federation, has issued statements decrying the government’s neglect of workers’ needs.
With rising inflation—reported at 3.7 percent for March—workers have increasingly voiced their grievances. The UTA transport union swiftly announced a bus strike, attributing the breakdown in negotiations to a government-imposed one-percent cap on collective bargaining aimed at curbed inflation rates. Buses and demonstrators faced numerous restrictions as tensions ran high.
Father Lorenzo ‘Toto’ de Vedia, representative of the slum priests, voiced profound social concern at the CGT rally, highlighting rampant joblessness and low wages. Similarly, Gisela, a cleaning lady attending the rally, articulated her struggles, stating, “Nobody can reach the end of the month. There is so much inequality.”
Since taking office in December, the Milei administration has instituted a substantial reduction in public spending, reported at 4.7 percent of GDP—a controversial move that has purportedly helped decrease inflation figures. Milei claimed in his address, meanwhile, that there has been a 30-percent reduction in state size, completely overlooking the discontent on the streets.
Critics like political analyst Artemio López have pointed out the dire socio-economic landscape, stating, “The distribution of income is the worst in the last 20 years.” Protests continued outside Congress as various pensioner organizations sought to voice their discontent, significantly affecting traffic and demonstrating the growing disquiet among citizens.
With the situation unfolding rapidly, the clash between Milei’s ambitious economic goals and the growing unrest among the populace is becoming alarming as Argentina stands at a pivotal moment, balancing austerity measures against the very real struggles of its citizens.
In conclusion, President Javier Milei’s ambitious pledge to eradicate inflation by mid-2024 arrives amid rising labor unrest, with unions demonstrating against his austerity measures. As protests manifest across the nation, it is becoming increasingly clear that the government’s fiscal policies stand in strong opposition to the realities faced by many Argentinians. The road ahead remains complex and uncertain, as the balance between economic reforms and social welfare continues to be a hotbed of contention.
Original Source: www.batimes.com.ar
