Argentina Readies for Nationwide Strike Amid Uncertainty Over IMF Loan News
Argentina is preparing for additional austerity demonstrations set to commence on Wednesday, featuring a nationwide 24-hour strike planned to begin at midnight. This action targets President Javier Milei, who continues to concentrate his efforts on securing support from Washington along with a new loan agreement with the IMF.
The labor action scheduled for Thursday will mark the third general strike during libertarian economist Javier Milei's 16-month presidency, which has been marked by severe spending cuts. The unions have organized this strike to demonstrate against his stringent "chainsaw" austerity measures.
During his presidential run, Milei notably brandished an operational chainsaw as a metaphor for the reductions he planned to implement regarding government agencies and welfare expenditures.
At his workplace, he has cut down subsidies for transportation, fuel, and energy, dismissed tens of thousands of state employees, and closed several governmental divisions entirely.
These policies have brought down inflation rates and led to Argentina’s first budget surplus in over ten years; however, they've also pushed the nation into a recession and increased poverty levels for millions within just a few months under President Milei's administration—though official statistics indicate an improvement in these figures.
"The impact (of austerity) on vulnerable groups far exceeds what is indicated by the monthly inflation rate," stated Hector Daer, secretary-general of the CGT labor union, prior to the strike.
The objective is to halt trains and planes, as well as close down schools and banks.
Argentina boasts one of the globe’s highest yearly inflation rates; however, Milei's strategies are attributed with reducing it from 211 percent in 2023 to 66 percent.
Unions argue that the favorable economic indicators mask the typical Argentinian's diminished ability to buy goods and services.
Before the planned work stoppage on Thursday, Buenos Aires will see a weekly demonstration by pensioners – one of the groups most affected by Milei’s reductions – taking place on Wednesday. This protest is supported by labor unions and various other social organizations.
On March 12, 45 individuals sustained injuries during a comparable protest that escalated into violence after being joined by football supporters.
Argentina has requested a $20 billion loan from the International Monetary Fund, increasing its total debt with the organization to $64 billion.
Milei states that the funds will enable his administration to settle its obligations with the central bank and assist in "eradicating" inflation — a crucial objective as the midterm legislative campaign nears, with his party aiming to boost its presence in Congress.
On Tuesday, the IMF reported that they had initially agreed on a loan deal with Argentina, but this arrangement needs approval from their executive board before finalization.
The lender stated that a definitive choice may be reached "within the next few days."
