Libertarian outsider Javier Milei swept to victory in Argentina’s presidential election Sunday, vowing to halt decades of economic decline in a country reeling from triple-digit inflation.
The self-described “anarcho-capitalist” pulled off a massive upset by ousting the populist Peronist coalition which has long dominated Argentine politics.
With 55.7 percent of the vote, Milei thumped his rival, Economy Minister Sergio Massa, who scored 44 percent of the vote and rapidly conceded defeat.
“Today begins the reconstruction of Argentina. Today begins the end of Argentina’s decline,” Milei said in his victory speech.”The model of decadence has come to an end. There is no way back.”
Latin America’s third-biggest economy has suffered decades of crises under interventionist governments big on welfare that resort to money printing to finance spending, fueling inflation, while borrowing heavily only to default on their debt.
Access to dollars is strictly controlled, leading to a thriving black market for greenbacks, and analysts warn the peso is ripe for a sharp devaluation.
“There is no room for gradualism…or half-measures,” warned Milei.
Milei’s main platform has been a plan to ditch the ailing peso for the US dollar and “dynamite” the Central Bank to do away with the “cancer of inflation.”
However, analysts warn the country is too low on dollar reserves for the move to happen anytime soon.
“This is the change that us young people want. I am not afraid of Milei, I am afraid my dad won’t be able to pay his rent. The Argentine peso isn’t worth a thing,” said Juan Ignacio Gómez, 17.