At a crossroads: Argentinians elect new head of state
In the midst of a severe economic crisis, Argentinians are electing a new president. In today's run-off election, Economy Minister Sergio Massa from the ruling Peronists is running against the libertarian populist Javier Milei. In the latest polls, the two were almost tied. Around 35 million people have been called to vote. Voting is compulsory.
The self-proclaimed "anarcho-capitalist" Milei promises a radical turnaround: He wants to introduce the US dollar as legal tender, abolish the central bank and many ministries and radically cut social spending.
"No one with such extreme views on economic issues has ever been elected president of a South American country," said economist Mark Weisbrot from the US research institute Center for Economic and Policy Research. "He barely recognizes a legitimate role for government in some of the key policy areas that most people see as necessary for a democratic, humane and stable society."
Living in constant crisis mode
The radical cure planned by Milei is particularly popular with young people. Many only know a life in constant crisis mode, are disappointed by the political establishment and finally want a fresh start.
Government candidate Massa, on the other hand, is likely to continue the current policy of massive state intervention in the economy and extensive social programs. Most recently, he dug deep into the state coffers to keep voters happy. He ordered mass recruitment in the public sector, approved higher income tax allowances and granted one-off payments to employees and pensioners.
Deep economic crisis
According to media reports, Massa has pumped the equivalent of several billion euros into the economy in recent months, around 1.5 percent of gross domestic product. The moderate Peronist has recently stoked fears of social austerity should his rival Milei win the election.
South America's second largest economy is in a deep economic crisis. The inflation rate is over 140 percent and around 40 percent of people in the once rich country live below the poverty line.
Argentina suffers from a bloated state apparatus, low productivity in industry and a large shadow economy that deprives the state of many tax revenues. The national currency, the peso, continues to lose value against the US dollar and the mountain of debt is constantly growing.
The upcoming president, whether it's Sergio Massa or Javier Milei, will assume the role as the head of state during these challenging economic times in Argentina. Despite being almost equally popular in the polls, Massa and Milei hold contrasting views on economic policy, with Massa more inclined to maintain the current interventionist approach and Milei advocating for drastic changes such as introducing the US dollar as legal tender and cutting social spending.
Source: www.dpa.com
