Cry from Argentina: We have no money, says new President Javier Milei

Argentinian President Javier Milei took office on Sunday with a stark warning to citizens to brace themselves for painful austerity measures.

Argentinian President Javier Milei after his Inauguration ceremony at Casa Rosada presidential palace in Buenos Aires on Sunday. Picture: Getty Images

Argentinian President Javier Milei took office on Sunday with a stark warning to citizens to brace themselves for painful austerity measures as he seeks to cut spending and curb triple-digit inflation, all with empty coffers.

The 53-year-old libertarian addressed thousands of supporters from the steps of congress, as they waved flags and chanted “freedom” and “chainsaw” in reference to the power tool he carried around on the campaign trail to symbolise spending cuts.

“There is no money,” Mr Milei said, vowing to put an end to “decades of decadence” by his overspending predecessors who he said had left him “the worst inheritance” of any previous government.

“The bottom line is that there is no alternative to austerity and there is no alternative to shock treatment.

“We know that in the short term the situation will worsen. But then we will see the fruits of our efforts.”

Latin America’s third-biggest economy is on its knees after decades of debt and financial mismanagement, with annual inflation at 140 per cent and 40 per cent living in poverty.

Mr Milei, a self-described ­“anarcho capitalist” – warned of spending cuts equivalent to 5 per cent of gross domestic product in the country where millions receive welfare handouts and have become accustomed to hefty ­energy and transport subsidies.

After his speech he made his way from the neo-classical congress building to the Casa Rosada (Pink House) presidential palace, waving to supporters and flanked by his sister Karina, his closest confidant.

He again addressed the crowd as he appeared on the balcony of the Casa Rosada, singing “I am the lion” and chanting his slogan “Long live freedom, damn it”.

Mr Milei late spoke briefly to Ukrainian President Volodymyr Zelensky on the steps of congress, and the two men shared a warm embrace. Mr Zelensky said on ­social media that he had also held talks with leaders of Ecuador, Paraguay, and Uruguay as he sought to shore up support for war-torn Ukraine.

Also attending the ceremony was Hungary’s nationalist Prime Minister, Viktor Orban, the only EU leader who has maintained close ties to Russia.

“The right is rising not only in Europe but all around the world,” Mr Orban wrote on social media, sharing a picture of a meeting with his “good friend” Brazil’s far-right ex-president, Jair Bolsonaro, also attending.

Mr Milei’s inauguration caps a meteoric rise for the former TV panellist who entered politics only two years ago.

His rants against the “thieving” establishment fired up voters and drew comparisons to leaders such as Mr Bolsonaro and former US president Donald Trump.

With his deliberately dishevelled mop of hair and rock star persona, he would wave a powered-up chainsaw at political rallies, vowing to “dynamite” the central bank and replace the ailing peso with the US dollar.

However, with few politicians from his party in congress, Mr Milei has softened many of his stances since his election, and ­allied with politicians he previously insulted, incorporating some into his cabinet.

Talk of shutting the Central Bank and dollarisation has dissipated.

“Milei 2.0 will still face an uphill climb, but he appears to have adopted a more pragmatic agenda and sought the advice of more experienced political figures,” said Benjamin Gedan, director of the Argentina Project at the Washington-based Wilson Centre.

AFP