As of: February 21, 2024, 3:57 p.m
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In focus: Argentina's right-wing populist President Javier Milei.
© Fernando Gens / dpa
The right-wing populist and newly elected president of Argentina is struggling with inflation that is hardly comparable.
To support the poorest, his government is now significantly increasing the minimum wage.
Buenos Aires - In Argentina, the government of President Javier Milei has ordered the minimum wage to be increased by 30 percent after failed negotiations with associations and unions.
It is expected to rise to 180,000 pesos (190 euros) in February and then to 202,000 pesos (212 euros) in March, as a government spokesman announced on Tuesday.
According to a study published this week by the Catholic University of Argentina, 57 percent of the population lives below the poverty threshold.
This is the highest proportion since the survey was introduced 22 years ago.
In addition, the country suffers from a barely comparable mega-inflation of over 250 percent, which is not only incredibly damaging to the poorer population.
Milei confidently: “Without my measures things would look much worse”
The previous government had tried to contain this massive inflation in the country with artificial price limits.
Milei, in office since December, stopped this, devalued the local currency, the peso, by 50 percent and cut subsidies for public transport and energy.
“The number on its own, in isolation, is terrible.
It really is her.
But you have to look at where we were and what the trend is,” Milei said on national television about a week ago.
He said in January that he saw “no alternative to shock therapy” with strict austerity measures.
The situation will initially get worse before things get better again - but he wants to have defeated inflation within the next two years, says Milei.
In addition, the situation in Argentina would look much worse without him and his measures, the 53-year-old explained confidently.
The busy president introduced hundreds of legal changes by decree this month alone.
In order to reduce government spending, among other things, thousands of public sector jobs should be cut and dozens of public companies should be privatized.
But the plans of the right-wing populist Milei have been canceled by parliament for the time being - the committees there are now discussing the further course of action.
(lf, afp)