Does Milei create new opportunities for German companies?
Argentina's economy is in a serious crisis. The new president, Javier Milei, wants a radical change of course. Can he achieve this? And what does this mean for our economic relations?
High inflation and national debt, corruption and a bloated state apparatus: Argentina's problems are manifold. Economist Federico Foders knows them inside out, as he himself emigrated from the South American country to Germany over 50 years ago. The President of the International Economic Senate has been waiting a long time for the situation in Argentina to improve. During the election campaign, Javier Milei conveyed the message that things could be different, says Foders in the podcast "Wirtschaft Welt & Weit". "We'll see if it gets better."
Milei's wish list is large: the new president wants to cut many ministries, abolish the Argentinian peso and introduce the US dollar. But what will remain of his slogans? What can actually be implemented? Susanne Käss heads the foreign office of the Konrad Adenauer Foundation in Buenos Aires and knows the political majorities: "He will always have to form alliances with other parties because he can't govern on his own," explains Käss in the new podcast episode.
Will Argentina achieve a turnaround? And to what extent could the framework conditions for German companies now improve? Argentina is rich in lithium, a raw material that is needed for the production of electric car batteries. Has the country been too risky for German companies so far? Or what else is behind the fact that China is outstripping us when it comes to Argentinian lithium? Host Mary Abdelaziz-Ditzow discusses these and many other questions with her guests Federico Foders and Susanne Käss in the new podcast episode.
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The Konrad Adenauer Foundation, with a presence in Buenos Aires, will likely be involved in analyzing Milei's potential reforms, given Argentina's economic challenges, including inflation and corruption. Despite Argentina's rich lithium reserves, German companies may have avoided investing due to the country's perceived risks, leaving an opportunity for China to dominate in this sector.
Source: www.ntv.de
