Far-right populist Javier Milei wins presidential run-off in Argentina

Victory moment: Javier Milei speaks after his victory over Sergio Massa in a run-off election in Buenos Aires on Sunday.AP The controversial economist, who identifies as an anarcho-capitalist, has prescribed sharp reduction in taxes and subsidies as remedy for the country’s economic crisis; he also intends to abandon peso and adopt the U.S. dollar as currency HECTOR ESTEPA BUENOS AIRES Controversial economist Javier Milei has won Argentina’s presidential elections, swinging the country to the right following a highly polarising campaign in which he proposed fundamental changes to the way the government is run in a country that’s grappling with the worst economic crisis in a generation. “Today marks the end of Argentina’s decline. Today, the impoverishing model of an omnipresent state, benefiting only a few while the majority of Argentinians suffer, comes to an end,” Mr. Milei said while addressing his euphoric supporters, who celebrated his victory with rock and roll songs. Mr. Milei, who identifies himself as an anarcho-capitalist, has a clear prescription for Argentina’s economy: a sharp reduction in taxes and subsidies. With annual inflation hovering above 142%, the libertarian economist does not believe that the peso — Argentina’s currency which has tanked in recent years — can be salvaged. He has proposed to abandon the national currency and adopt the U.S. dollar, similar to what El Salvador and Ecuador have done in Latin America, although those were smaller countries. Argentina is the third-largest economy in the region. Drastic changes “The changes are drastic. There is no room for gradualism, no room for half measures,” he declared after winning the elections, expressing a clear statement of intent. Neither his disruptive proposals nor his volcanic personality have deterred voters tired of traditional politics, especially after a 5% increase in poverty during the centre-right government of Mauricio Macri (2015-2019) and another 5% under the current left-wing administration of Alberto Fernández, from voting him to power. Over 40% of the population is now living in poverty. Mr. Milei is known for his virulent attack on leftwing politics. He calls the social state a “pedophile in a kindergarten” and has shown inclination towards legalising organ sales, though he later retracted that statement. Vote share Mr. Milei secured 55.69% of the votes, surpassing his left-wing Peronist rival Sergio Massa by over 11 points. Mr. Massa secured 44.30%. “There were two paths. We chose the path of defending the security system in the hands of the state, promoting the defence of education and public health as central values. Argentinians chose another path,” Mr. Massa said, announcing his withdrawal from politics. This marks the worst defeat for Peronism in Argentina’s history. The political movement, advocating for a social welfare state and public interests, now has to reshape itself and seek a new leadership. Although Mr. Milei won the run-off decisively, governance could be a challenge. His party controls only 15% of Congress, requiring him to negotiate with other parties to pass laws. He will rely on lawmakers from Juntos por el Cambio, the coalition led by former President Macri. His support in the final stages of the campaign was crucial for Mr. Milei’s victory and will remain vital to passing laws. Mr. Macri may also influence Mr. Milei’s international policies. The economist intends to shift towards supporting the U.S. and Israel, expressing a willingness to downgrade ties with countries he deems communist, such as China and Brazil, which are Argentina’s trading partners. ‘No communism’ “Not only will I not do business with China, I will not do business with any communist. I am a defender of freedom, peace, and democracy. Communists do not enter there. Chinese do not enter there. (Vladimir) Putin does not enter there. Lula (Da Silva) does not enter there,” he declared during the campaign. Mr. Milei will assume the presidential office on December 10. (Hector Estepa is an independent journalist)