Milei's Economic Battle

Argentina's self-styled anarcho-capitalist President Javier Milei made his first policy speech to parliament, facing lawmakers he has described as "rats" and "traitors" for stalling his project of deregulation and budget cuts.

Since taking office in December, Milei has clashed with an opposition-dominated parliament over his mega-bill to introduce sweeping changes to the crisis-riddled economy.

Many of his planned reforms are being challenged in court, with more than 60 lawsuits under way by labor unions, business chambers and NGOs, while Argentina has seen massive protests by citizens who fear Milei's plans will leave them poorer.

Faced with parliamentary reticence, Milei first scrapped almost half of the initial 664 articles in his bill, then withdrew it altogether.

But the president has vowed to return his bill to parliament, in a form he will announce. And he has threatened to pass his reforms by presidential decree if lawmakers do not fall in line.

Argentina is grappling with severe economic struggles after decades of mismanagement that has driven poverty levels to nearly 60 percent and pushed inflation to an annual rate over 200 percent.

Milei, a 53-year-old political outsider, won a resounding election victory last year on a wave of fury over a financial crisis marked by rampant money printing and fiscal deficit.

He began his term by almost immediately devaluing the peso more than 50 percent, slashing state subsidies for fuel and transport, cutting tens of thousands of public service jobs, and scrapping hundreds of rules in his bid to deregulate the economy.

Parliament was not consulted on any of these measures, most of which passed by decree.

In January, Argentina reported its first monthly budget surplus in 12 years while boosting foreign currency reserves from $21 billion to $27 billion.