Thousands led by labor unions marched in Buenos Aires on Wednesday to challenge President Javier Milei's economic reform decree, which they claim would erode worker and consumer protections.
The newly-elected president aims to untangle what he perceives as excessive government control through a new decree. He presented a package of bills to parliament on Wednesday to implement his decree and alter or eliminate over 350 economic regulations.
The decree abolishes a rent price ceiling, removes certain worker protections, and eliminates laws safeguarding consumers from price abuses. This occurs amid annual inflation surpassing 160 percent and poverty levels exceeding 40 percent.
In addition, he unveiled plans for significant layoffs, cutting 5,000 government jobs and refusing contract renewals for those hired in 2023. Meanwhile, employees hired before 2023 will undergo individual reviews for their employment status.
Other parts of the decree involve terminating automatic pension raises, limiting the right to strike, gradually removing price caps on private healthcare services and initiating the privatization of select public enterprises. It will also impact sectors such as tourism, satellite internet services, pharmaceuticals, wine production and international trade.
The protesters are demanding court intervention, labeling the decree as unconstitutional and criticizing its proposed deregulation and austerity measures aimed at revitalizing Argentina's economy. However, a judge rejected the appeal, noting the decree has yet to take effect.
"We do not question the president's legitimacy ... but we want a president who respects the division of powers, who understands that workers have the need to defend themselves individually and within the framework of justice when there is unconstitutionality," said Gerardo Martínez, general secretary of Argentina's construction workers' union.
The protest remained mostly peaceful, but a small group clashed with the police, leading to a scuffle. Journalists got caught in the fray as law enforcement dispersed the protesters, resulting in some journalists being subjected to police force.
Financial 'shock therapy'
Since assuming office on December 10, Milei has devalued Argentina's currency by 50 percent and reduced transport and energy subsidies. He aims to reshape the country's economy and downsize the state to tackle escalating poverty and anticipated year-end inflation of up to 200 percent.
Argentina, South America's second-largest economy, grapples with severe issues, including 143 percent annual inflation, resulting in a sharp decline in its currency value. It also faces a $43 billion trade deficit and owes $45 billion to the International Monetary Fund, with an impending debt repayment of $10.6 billion to private and multilateral creditors by April.
"The goal is (to) start on the road to rebuilding our country, return freedom and autonomy to individuals, and start to transform the enormous amount of regulations that have blocked, stalled, and stopped economic growth," Milei said after being elected.
Milei's administration quickly faced protests. Although demonstrations are allowed, the government warned to cut off public aid payments for those obstructing roads. The protesters were also prohibited from carrying sticks, concealing their faces, or bringing children to the march.
In a pre-protest media interview, Milei criticized those opposing his reforms for "not being aware of the seriousness of the situation."
The administration has said it already expects the extensive restructuring of the nation's economy to face significant challenges, with Milei referring to it as financial "shock therapy" and saying it would adversely affect numerous citizens.
Unless the plan is entirely revoked by both houses of Congress, the decree will take effect on Friday. Milei's far-right party, Freedom Advances, holds 40 seats in the 257-member lower house and seven senators out of 72.