Argentina reveals broad new austerity measures

Argentinian president Mauricio Macri has unveiled broad new austerity measures in an attempt to rein in the country’s economic crisis, which include eliminating “about half” of government ministries.

“We believed with excessive optimism that we could go along fixing things bit by bit. But reality shows us that we have to move faster,” Macri said in a televised national address. “The world has told us that we are living beyond our means.”

The decision to axe or merge 13 of Argentina’s government ministries will “create political tensions, as Macri will need to fire politicians who are crucial allies to get his reforms approved in Congress”, says the BBC.

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Macri also announced the reinstatement of a tax on exports of soy products, a topic that has been” highly contentious for the powerful farming sector “, the Financial Times says.

“We know that it is a bad tax and it goes against what we want to encourage, but this is an emergency and we need your help,” he said.

A run on the peso has seen the currency lose more than 50% of its value despite the central bank raising interest rates to 60%.

The new measures come less than a week after Macri called on the IMF to fast-track a $50 billion support programme that was approved in June but is yet to be delivered.