Milei proposes radical reforms in his first year of government to transform Argentina.

In a televised speech that lasted 40 minutes, Argentine President Javier Milei celebrated the first anniversary of his arrival in government with a series of announcements that promise to radically transform the country’s economic landscape. At the center of his presentation, Milei emphasized his intention to reduce the national tax burden by 90%, a measure that he claims will restore fiscal autonomy to the Argentine provinces, which they have lost over the years. This proposal aims to promote fiscal competition among the different provinces, generating greater incentives for investment. Milei underscored that the Argentine economy is experiencing a cyclical recovery, a process he attributed to the "recomposition of wages and pensions, and the recomposition of corporate stocks." He stated that the country is emerging from a deep economic crisis, which left a complicated legacy for his administration. However, the president noted that recent economic achievements are only part of the picture; the real structural transformation, according to his analysis, lies in saving equivalent to 15% of GDP, which he considers essential to stimulate private investment. Milei's proposal to reduce the tax burden is complemented by the promise to eliminate the "inflation tax," which, in his words, will facilitate the creation of a conducive business environment. The foundation of his plan rests on the premise that a decrease in country risk and interest rates will lower the cost of capital, thus encouraging investors to risk their capital in the country. The president argued that this strategy will benefit both the private sector and general consumption, creating a positive cycle for the economy. In addition to tax reform, Milei revealed his intention to implement changes in various areas, including pensions, the labor market, national security, and even politics itself. These reforms are expected to go hand in hand with the proposal for a new exchange rate, which, according to the president, will aim to converge towards a more stable model, gradually dismantling the currency controls that have limited access to foreign currency in Argentina. In his speech, Milei went further and reaffirmed his commitment to advancing the closure of the Central Bank, a step he considers crucial to definitively eradicating inflation. This measure has been met with skepticism by some economists and analysts, who warn of the risks of extreme deregulation of the monetary system. Nevertheless, the president expressed confidence, asserting that the elimination of the central bank will allow for greater autonomy in the use of currencies, offering citizens the possibility of conducting transactions in dollars or in the currency of their choice starting in 2025. The response from the opposition and critical sectors has been swift. Many believe that Milei's proposals could exacerbate existing inequalities and jeopardize economic stability. However, the president remains steadfast in his proposal, defending his ultra-liberal economic vision as the solution to the country's historical problems. As Argentina moves towards a new economic era, attention is focused on whether the reforms announced by Milei can be implemented smoothly and if they will generate the promised results. The lingering question is whether the radical nature of his proposals can indeed transform the Argentine economy or if, on the contrary, they will face significant resistance both politically and socially. Milei's speech not only marks a milestone in his presidency but also reflects a bold vision that could change the course of Argentina in the coming years. However, the path to implementing these reforms will be fraught with challenges, and it will be crucial to observe how events unfold in the coming months as the government begins to materialize its ambitious plans.