On December 10, 2024, President Javier Milei of Argentina announced significant plans for his administration’s second year in office, including a sweeping structural tax reform aimed at eliminating 90 percent of existing taxes by 2025. This bold initiative comes in the wake of Milei’s first year as the country’s first libertarian president, following the tenure of socialist former President Alberto Fernández. When he took office amidst a debilitating economic crisis exacerbated by previous policies, Milei employed drastic measures described as “shock therapy” to stabilize Argentina’s economy and combat hyperinflation. His efforts have led to a drastic reduction in the inflation rate—from 25.5 percent in December 2023 to 2.7 percent by October 2024—while achieving ten months of trade surplus.
In a reflective speech marking the anniversary of his presidency, Milei expressed gratitude to the Argentine people for their resilience and support through the challenging initial months of his administration. He emphasized that their sacrifices would lead to lasting change, highlighting the adage that tough times produce strong individuals capable of fostering prosperity. Milei reiterated his commitment to a series of economic reforms, specifically a comprehensive overhaul of the current tax system, which will restore tax autonomy to Argentina’s provinces and encourage investment through competitive tax practices. By envisioned tax reduction, he aims to create an environment conducive to attracting foreign and domestic investments.
Milei’s proposed policy changes extend beyond fiscal reforms. He aims to eliminate existing currency control measures, allowing citizens to utilize various currencies for everyday transactions while mandating taxes to be paid in pesos. This shift towards currency liberalization is expected to encourage free market principles. Moreover, President Milei highlighted the need for trade reform, particularly expressing criticism towards the Mercosur trade bloc, of which Argentina currently holds the pro-tempore presidency. He proposes dismantling tariff barriers within the bloc and seeks to establish a Free Trade Agreement with the United States—an opportunity he believes should have been pursued two decades ago.
Continuing on the theme of deregulation, Milei’s administration plans to conduct a “ruthless audit” of public spending, aiming to eliminate unnecessary agencies and reduce bureaucracy. Various initiatives are also on the table, such as implementing an anti-mafia law modeled after the U.S. RICO Act, reforms in federal policing, and the creation of an anti-narcoterrorism unit in coordination with Mercosur. Additionally, Milei intends to propose a plan for constructing new nuclear reactors, which he sees as fundamental to Argentina’s future energy needs.
As Argentina approaches midterm legislative elections in 2025, Milei emphasizes a departure from the norm of election year fiscal expansion and instead commits to maintaining a disciplined approach to public spending and economic reform. He insists that the government will not succumb to the temptation of increasing spending during an election cycle, emphasizing the need for persistent reformative agendas rather than the short-sighted strategies of past leaders. His administration’s goals cite a focus on returning wealth to the private sector through tax cuts and profound reforms that allow citizens to make informed choices about the nation’s direction.
Concluding his remarks, Milei expressed a vision of Argentina on the brink of a “future of prosperity,” believing that 2024 would mark a year synonymous with the emergence of a new Argentina. His administration aims to provide tangible results reflective of genuine reform rather than empty promises. With a tone of resolute optimism, Milei encouraged the populace to embrace an era of progress, casting aside skepticism about their nation’s ability to recover and ascend to a place of economic prominence. His administration portrays a belief in the potential for renewal, inviting citizens to actively engage in shaping their country’s future amidst a landscape of significant economic transformation.