Argentine President Milei Says There’s ‘No Plan B’ for Economy
Argentina’s newly elected President Javier Milei has promised to privatize state firms and slash jobs and spending. But his cuts may be painful for many Argentines.
In an interview with WSJ editor in chief Emma Tucker, he outlined his plan to prevent an economic collapse.
#Argentina #JavierMilei #WSJ
In an interview with WSJ editor in chief Emma Tucker, he outlined his plan to prevent an economic collapse.
#Argentina #JavierMilei #WSJ
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TVTranscripción
00:00from the brink of economic collapse.
00:30I was in Davos.
00:32Today I am here to tell you that the West is in danger.
00:37And his speech in Davos drew a lot of attention.
00:42I want to understand what else he needs from his followers.
00:50Beyond words.
00:52For example, Argentina is receiving new investments.
00:57It is true that we would need investments,
01:02because one of the things that happens is that when you make a fiscal adjustment,
01:06you increase the savings.
01:08And that is why I am here.
01:11If that savings does not have a return on investment,
01:15the fall in economic activity,
01:17the fall in employment,
01:19and the fall in real wages will appear.
01:22Domestically, during his first month in office,
01:25he has proposed roughly 1,000 reforms to reduce regulation
01:29and privatize state-owned companies.
01:31Privatization of the state-owned companies.
01:34The privatization of the state-owned companies.
01:37Privatization.
01:39How quickly do you plan to move forward with your agenda?
01:43As quickly as I can.
01:45I will do everything I can to sell state-owned companies as soon as possible.
01:50But there are institutional restrictions.
01:52And where will it start?
01:54With Argentine airlines?
01:56With trains?
01:58We will privatize everything that can be privatized.
02:01I mean, it is not a question of names.
02:04I mean, it is not a question of names.
02:07It is only a matter of a technical restriction in terms of time.
02:13Last month we bought 5 billion dollars
02:17and the monetary base in Argentina is about 8 billion dollars.
02:24That is, 7.5 billion dollars.
02:27So, if we finish cleaning up all the remunerated passives
02:32of the central bank, we would be in a position to dollarize for very little money.
02:37So, do you still think about adopting the dollar?
02:41Actually, we have always talked about a free currency competition,
02:45about what the Argentines choose.
02:48It is likely that at an initial moment they will choose the dollar.
02:52Do you have a plan B?
02:54No, there is no plan B.
02:56There is no plan B to do things right.
02:59Do you do things right or do you do them right?
03:02Because if plan B is to start doing them more or less,
03:06or to negotiate, that is the history of Argentina.
03:10That is how we are.
03:12So, the key value drivers of the program are not negotiated.
03:17China, which is a very important country for Argentina,
03:21not only as a huge market for its exports,
03:26but also for its financial support.
03:29Why did you declare that you do not want to have relations with the communists?
03:35Why do you put in danger this important relationship with China?
03:41It is true that I will not be allied with the communists.
03:46It is true that we reject being part of the BRICS.
03:51But we have always maintained that the commercial issue
03:55does not have to be affected,
03:58because basically it is a decision of the private sector.
04:02Now, it is true that I do not consider it to be our strategic partner.
04:07But we have to separate the geopolitical issue from our commercial issue.
04:12You can have different differences.
04:15We can have a difference with the UK
04:17regarding the Malvinas Islands.
04:20However, that does not make it impossible
04:23for us to have a set of adult commercial relations.
04:28And have you discussed the Malvinas with David Cameron in Davos?
04:32We have decided to have an adult relationship
04:36in which to participate and work together in the international agenda
04:43and to have a talk about our territorial differences.
04:48You have strongly supported Israel
04:52and you have not done the same for other countries in Latin America.
04:57Why do you disagree?
05:00I have a clear position on this.
05:03We have decided to condemn the terrorist acts of the Hamas group.
05:11We have decided to become allies with Israel and its inhabitants,
05:17regardless of their nationality.
05:21And we also consider that Israel has a right
05:28in terms of legitimate defense,
05:31given the terrorist attack it has received.
05:34The rest is a matter of the rest.
05:38Our policy is designed from a moral perspective.
05:43I have heard that you intend to convert to Judaism. Is that true?
05:50There is a possibility.
05:53But the issue is that I could not do it now
05:59because the fulfillment of the precepts
06:02could be in conflict with my activities as president.
06:08For example, respecting Shabbat.
06:11So, in that sense, it is something deeper, longer.
06:20With which political leader in the world do you identify and why?
06:28Throughout history, there have been great leaders
06:35who are witnesses of freedom.
06:42The greatest liberator in the history of mankind is Moses.
06:47That is the vision of a libertarian leader, without a doubt.
06:56Then there are very important roles,
06:59such as the one played by Ronald Reagan,
07:02together with Pope John Paul II and Margaret Thatcher.
07:06So, the reality is that you will always find me
07:12on the side of those who have defended the ideas of freedom.