Libertarian Javier Milei Wins Argentina Presidency With Ambitious Economic Reform Mandate
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Far-right libertarian Javier Milei won Argentina's presidential election in a strong victory, beating Peronist Sergio Massa. Milei has pledged to take a chainsaw to public spending and dollarize the economy.
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Milei struck a measured tone in his first speech as president-elect. He did not refer to "dollarization" but pledged rapid reforms to fix the crisis-hit economy.
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Milei's win boosted Argentine bonds, equities and energy stocks like YPF, but put pressure on the peso currency due to his plans to scrap it.
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Investors welcomed Milei's win but will watch for his policy plans and ability to enact austerity. The IMF loan program and depleted reserves may force swift action.
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Milei faces challenges governing with a small bloc in Congress. But his larger-than-expected 56% vote share gives him a public mandate for aggressive change.