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Argentine demonstrators: protests against Milei's "shock therapy"
Photo: Europa Press / ABACAPRESS / IMAGO
New measures in the fight against poverty: In Argentina, the government of President Javier Milei has ordered the minimum wage to be increased by 30 percent after failed negotiations with associations and unions. It is expected to rise to 180,000 pesos (190 euros) in February and then to 202,000 pesos (212 euros) in March, as a government spokesman announced on Tuesday.
In Argentina the inflation rate is over 250 percent year-on-year. According to a study published this week by the Catholic University of Argentina, 57 percent of the population now lives below the poverty threshold. This is the highest proportion since the survey was introduced 22 years ago. Around 27 million people in Argentina are poor, and 15 percent of them have too little money to cover their food needs, according to the study.
Eduardo Donza, a researcher at the Social Debt Observatory, suspects that inflation could slow in the coming weeks. However, rising prices would continue to affect Argentines, he told the AP news agency. Poverty will therefore affect at least 60 percent of the population in March.
The previous government tried to contain massive inflation in the country with artificial price limits. Milei, in office since December, lifted price limits, devalued the local currency, the peso, by 50 percent and cut subsidies for public transport and energy. The fact that "six out of ten Argentines are poor" is "the true legacy of the caste model" of the last 20 years, says Milei. His government will “give its life” to bring about a change in the socio-economic reality in Argentina.
In January, Argentina's president prescribed "shock therapy" for his country with severe austerity measures. The situation will initially get worse before things get better again.
eru/AFP/AP