Scholz attempts to persuade the radical reformer Milei to adopt a more moderate stance.
Argentine President Javier Milei pushes for extreme fiscal austerity in his nation, standing ideologically apart from German Chancellor Olaf Scholz. Embodying anarcho-capitalist beliefs, Milei clashed with Scholz during a meeting where the latter promoted social democratic policies.
Following their brief, 60-minute meeting at the Berlin Chancellery, Government Spokesperson Steffen Hebestreit reported that Scholz stressed the importance of considering social issues in Argentina's economic reforms. Hebestreit added that preserving social harmony should be a primary consideration.
Plagued by recession, an overburdened bureaucracy, low manufacturing efficiency, and a vast informal economy, Argentina (the second most prominent economy in South America) is struggling. The live-and-let-live president plans to rejuvenate the country through severe austerity measures.
However, these measures come at a cost: Argentina's economic output is shrinking, with the International Monetary Fund (IMF) projecting a 2.8% contraction in this year. Argentina's inflation remains one of the highest worldwide. According to the Catholic University of Argentina, roughly 56% of the population lives below the poverty line, and nearly 18% experience extreme poverty. Milei's reforms have sparked violent protests across the country.
Prior to his encounter with Scholz, Milei was awarded a medal by the Friedrich August von Hayek Society in Hamburg. Known for his impulsive and contentious remarks, Milei refrained from commenting on Germany during his speech and mainly shared his political views. He recounted his ideological journey to becoming a follower of the Austrian School, comprising Hayek (1899-1992) and Ludwig von Mises (1881-1973). Through the teachings of American economist Murray Rothbard (1926-1995), he transformed into an "anarcho-capitalist."
Approximately 200 attendees in Hamburg – including AfD Bundestag member Beatrix von Storch and the chairman of the right-conservative Value Union, Hans-Georg Maaßen – cheered on Milei. The audience frequently chanted "Libertad" (Freedom) in unison.
