Argentine President Milei says 'chainsaw' cuts to last years

BUENOS AIRES

Argentine President Javier Milei has told lawmakers he planned to make more "chainsaw" cuts to public spending, adding that his government's austerity program would "last for years."

The libertarian leader has held a chainsaw at public events as a symbol of his push to restore fiscal discipline in the South American nation where he has been president since December 2023.

Milei's measures, which have plunged Argentina into recession, are blamed for tipping millions more people into poverty in the first half of 2024, and bringing tens of thousands of people onto the streets in protest.

Milei has swatted away criticism, insisting that what he presents as short-term pain will lead to long-term gains for the economy.

He said that "the chainsaw is not only a government program, it is a state policy that will last for years," telling lawmakers he planned to pursue more budget cuts during his second year in office.

The right-winger has suspended public works, laid off tens of thousands of civil servants, gutted state agencies and reduced aid to provincial governments as part of his bid to shrink the government and revive Argentina's long-ailing economy.

Milei also called on legislators to support a new agreement between the government and the International Monetary Fund, which would include a disbursement allowing the country to "eliminate" currency exchange controls this year.

The IMF's 30-month loan agreement with Argentina expired on Dec. 31 last year, and is worth around $44 billion, making it the largest program it has.

The IMF said that month it was in talks with Argentina on a new program to replace that loan agreement.