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.
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.
Article continues belowThe Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
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.