President Javier Milei has proclaimed his administration as “the best in Argentina’s history” and has assured that inflation will be eradicated by the middle of next year. However, the head of state’s comments – quite audacious, considering the country’s ongoing challenges with rampant inflation – came at a time when unions were intensifying their pressure on the government and expressing opposition to his “chainsaw” austerity measures, which they argue have left millions in financial distress.
In a Wednesday address to investors and economists at the EXPO EFI 2025 event in Buenos Aires, Milei, 54, stated that “inflation has its sell-by date for the middle of next year and now is the time to think of growth.” “We have concluded the stage of stabilisation,” he informed the audience, while also noting “that does not mean things are perfect.” Milei conveyed to the audience that Argentina’s state of emergency is behind it, while he expressed fervent commendation for the fiscal outcomes achieved by his administration.
This month’s partial removal of currency and capital controls, which have been in effect since 2019, was also praised. “The ‘cepo’ is a monstrous tool because it does not permit those who wish to save and influences the future,” he maintained, using the term to refer to restrictions on access to foreign currency. The head of state also highlighted his recent US$20-billion agreement with the International Monetary Fund (IMF), criticizing, in strong terms, detractors of his administration who had predicted that he would never achieve this milestone.
Shortly after Milei’s address, union leaders mobilized thousands of members to demonstrate against austerity measures. On the eve of Labour Day, demonstrators engaged in a predominantly peaceful protest, where slogans opposing Milei’s austerity measures were more prevalent than instances of conflict. Nonetheless, the demonstration concluded with 14 individuals taken into custody, as reported by local news outlets. Demonstrators, bearing union banners and anti-austerity slogans alongside images of the late Pope Francis, participated in a protest organized by the CGT (Confederación General del Trabajo), which stands as Argentina’s largest and most influential labor federation.
The CGT released a statement expressing dissatisfaction with the government’s approach, stating that it “does not attend grievances, nor does it listen or engage in dialogue while implementing a grave austerity whose cost is being paid by workers and the unemployed with deteriorating incomes.” Shortly after the march, the UTA transport union declared a bus strike scheduled for next Tuesday (May 6) due to a failure in negotiations with companies and officials. The government has instituted a one-percent monthly limit on collective wage negotiations, aiming to mitigate inflation, which surged to a monthly rate of 3.7 percent in March, ahead of the October midterm elections.
In addition to the 14 arrests made for purportedly inciting disturbances, the Security Ministry reported on Wednesday that 29 buses carrying demonstrators were detained “for infractions.” During the CGT rally, Father Lorenzo ‘Toto’ de Vedia conveyed the backing of the so-called slum priests referred to as “curas villeros.” The Catholic leader criticized the “indecent wages” and “lack of jobs,” asserting that in low-income neighborhoods “the vacuum left by the state is a space filled by narcos.” “Nobody can reach the end of the month,” stated Gisela, a cleaning lady who chose to remain anonymous at Wednesday’s rally. “A significant degree of inequality persists.”
Since assuming office in December 2023, the Milei administration’s austerity measures have resulted in a reduction of public spending by 4.7 percent of the Gross Domestic Product, as reported by the IARAF (Instituto Argentino de Análisis Fiscal) think tank last February. This initiative contributed to a reduction in annual inflation from 211 percent in 2023 to 118 percent in the subsequent year. Monthly increases in consumer prices are currently ranging from two to four percent.
In his EXPO EFI speech, Milei neglected to address any aspect of the CGT rally, instead touting “a 30-percent reduction in the size of the state.” In his address, replete with derision for his adversaries, he ridiculed those who “weep over social questions.” Milei emphasized that “with the motosierra,” or chainsaw, his administration has initiated “the biggest adjustment in the history of humanity.”
Political analyst Artemio López characterizes “the social situation in Argentina as critical,” asserting: “The distribution of income is the worst in the last 20 years.” On Wednesday afternoon, pensioner organizations conducted a fresh protest outside Congress, causing significant traffic disruptions in the vicinity. The demonstration was accompanied by Border Guard and Federal Police personnel to ensure compliance with Security Minister Patricia Bullrich’s “anti-picket” protocol.