Argentina's new Milai is preparing a draft decree that plans to dismiss about 7,000 civil servants after January 1, 2024, in order to reduce public spending and cope with the dire economic situation. The news sparked widespread concern and controversy in society, with some civil servants and trade union organizations saying they would ** and opposing the measure, while some economists and analysts believed that it was a necessary adjustment that would help restore balance and stability in the economy.
Argentina is the third-largest economy in South America and one of the most inflationary countries in the world. In 2023, Argentina has an inflation rate of 161% and a contraction in GDP by 13%, the size of the external debt exceeds $100 billion, and about a quarter of the population lives below the poverty line. In response to the economic crisis, Milley promised during the election campaign a series of "shocks," including reducing the fiscal deficit, controlling inflation, restructuring foreign debt, and improving social welfare. On December 10, after Milley officially took office, he immediately announced a number of emergency economic measures, such as raising the minimum wage, increasing pensions, reducing personal income tax, and imposing export taxes.
However, these measures do not fundamentally solve Argentina's economic problems, but require deeper structural reforms. One of them is to reduce public spending and optimize the fiscal structure. It is reported that Argentina's public expenditure accounts for as much as 40% of GDP, of which civil servants spend a large part of their salaries and benefits. Argentina has about 4 million civil servants, or 10% of the workforce, and their salaries and benefits are higher than those of the private sector. Some of these civil servants were appointed during the administration of his predecessor Macri, some during Milley's election campaign, and some after Milley's inauguration. The appointment of these civil servants is often influenced by political factors rather than on considerations of competence and efficiency. Therefore, Xin** believes that it is necessary to carry out a large-scale clean-up and optimization of civil servants in order to reduce the financial burden, improve administrative efficiency, and improve the quality of public services.
According to the draft decree prepared by the new **, after January 1, 2024, personnel in the State Executive and public entities will not be renewed, and the contract will be assessed for renewal with those who entered the Executive before January 1. This means that about 7,000 civil servants could be laid off, including some senior ** and advisers. In addition, the new ** will also adjust the salaries and benefits of civil servants, cancel some unreasonable allowances and bonuses, standardize some special work systems and holiday arrangements, and implement a performance appraisal and reward and punishment system. The new** measures are expected to save about $1 billion in public spending, helping to narrow the fiscal deficit, reduce inflationary pressures and restore economic confidence.
However, these measures have also met with strong opposition from some civil servants and trade union organizations. They believe that this is unfair treatment of civil servants, a destruction and weakening of the public sector, and an irresponsibility and disrespect for society. They said that they will use various means, such as strikes, marches, lawsuits, etc., to protect their legitimate rights and interests and prevent the new ** layoff plan. Some opposition political parties and social groups have also expressed dissatisfaction and criticism of the new ** layoff plan, believing that it is a political revenge against his predecessor Macri, a violation of democracy and the rule of law, and a violation of human rights and social justice.
In response to these objections and **, Xin** said that they will respect and protect the legitimate rights and interests of civil servants, but will also adhere to and implement the redundancy plan, and will not back down or compromise because of pressure. Xin** believes that the layoff plan is a necessary condition for the recovery of the Argentine economy and a necessary means for the progress of Argentine society. The new ** calls on the majority of civil servants and all sectors of society to understand and support the new ** layoff plan, and to contribute and sacrifice for Argentina's economic recovery and social development. The new ** said that they will do their best to provide some compensation and resettlement for the civil servants who have been laid off, provide greater efficiency and quality for the public sector in Argentina, and provide better services and benefits for the people of Argentina.