Milei Argentina plans raise more doubt than certainty

Significance

LLA has capitalised on growing discontent with politics after over a decade of economic stagnation, high inflation and increasing poverty. Milei’s discourse against what he calls the ‘political caste’ reflects loss of confidence in political leaders, who seem more focused on internal disputes than key social concerns such as inflation, insecurity and unemployment.

Impacts

• Opinion polls could be overestimating Milei’s support, given his allies’ weak performance in provincial elections to date.
• Milei’s dollarisation plan does not guarantee fiscal discipline or eliminate the risk of another disorderly end to a rigid monetary policy.
• The congressional majority, provincial governors and trade union leaders would all reject Milei’s economic reform plans.