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Argentina’s economic policy remained a central focus, with President Javier Milei engaged in a public dispute with Techint conglomerate head Paolo Rocca over accusations of protectionism and the government’s use of currency controls. Milei’s administration celebrated inflation reaching an eight-year low, though reports indicated consumer prices were beginning to accelerate again. His government continued its state-shrinking agenda, having laid off over 60,000 public sector employees during his first two years. On a positive note, the International Monetary Fund praised Argentina’s economic performance following a meeting with Economy Minister Luis Caputo, expressing support for reserve accumulation and scheduling a review mission for February.
The European Union and Mercosur formally signed a major free trade agreement in Asunción, a decades-in-the-making deal aimed at reducing tariffs. The signing was diplomatically tense, with Argentina’s Milei attending but Brazil’s President Lula notably absent. Concurrently, Milei’s international profile was elevated by a provocative speech at the World Economic Forum in Davos, where he championed unregulated free-market capitalism. His government also moved forward domestically, calling an extraordinary congressional session to debate labor reform. In a separate legal matter, plaintiffs in a New York court case over Argentina’s 2012 nationalization of YPF won a $16 billion judgment and are now seeking to enforce it aggressively, including by demanding details on central bank gold reserves.
3 topics | 48 sources
Javier Milei traveled to Davos, Switzerland, to speak at the World Economic Forum. In his speech, he argued that free-market capitalism is the only just economic system and that politicians should stop interfering with entrepreneurs. After returning from Davos, Milei is focusing on pushing his economic and labor reforms through Argentina's Congress. He also defended his government's currency band system, explaining the conditions needed for the peso to float freely.
Argentine media reports that Javier Milei signed a confidential agreement with Hayden Davis regarding a cryptocurrency case called $LIBRA a year ago, and he has not answered questions about it. The text of the confidential contract has been published, creating a scandal. Meanwhile, Milei has intervened in a major business dispute, causing divisions in loyalties.
A new poll shows President Javier Milei's approval is improving on economic issues, as Argentina's inflation rate for 2025 is reported to be the lowest since 2017. However, the poll also highlights public concern over inflation and wages, and the government has dismissed over 60,000 public employees during Milei's first two years in office. Milei celebrated the lower inflation, but prices have recently begun to accelerate again. He also clashed with a billionaire CEO over claims of protectionism, while political figures like Felipe Solá criticized Marco Lavagna's inflation measurement.
2 topics | 27 sources
Jan 29
Mercosur and European Union sign major trade agreement in ParaguayThe Mercosur trade bloc and the European Union have officially signed a major free trade agreement in Asunción, Paraguay. The deal is seen as a significant step in economic cooperation between the two regions. Argentine President Javier Milei attended the signing ceremony, while Brazilian President Luiz Inácio Lula da Silva was notably absent, having held a separate meeting with EU officials beforehand. The agreement's ratification now faces a complex process in Paraguay, involving thousands of pages of documentation.