On December 10, 2025, two years marked since Javier Milei took office as President of Argentina.
His victory in the late-2023 election was politically significant, as a radical libertarian, openly advocating the dismantling of the state in its traditional form, came to power in one of Latin America’s largest countries. During the campaign, Milei promised to pull Argentina out of a prolonged economic crisis through privatization, harsh austerity, and a sweeping reduction of government. At the time, most major media outlets and experts were skeptical of these plans, labeling the politician a “libertarian populist.”
In the fall of 2025, Western political scientists began to speak of a decline in the president’s popularity and the erosion of his political capital. Yet two years later, Milei remains in power, his party has won parliamentary elections, and economic indicators, at least at the macroeconomic level, appear more stable than before his arrival. Here is an overview of the first two years of Javier Milei’s presidency and what lies ahead for Argentina in the remainder of his term.
Milei’s symbol is a chainsaw. The president saves on everything, even toilet paper
When Javier Milei took office on December 10, 2023, Argentina was in deep crisis. Inflation stood at around 160%, nearly 40% of the population lived below the poverty line, public debt was rising, and trust in government had been undermined by years of failed reforms. Milei, who described himself as an anarcho-capitalist, proposed a radical solution: sharply reduce the role of the state, eliminate “parasitic agencies,” and dismantle the political caste that, in his words, had been enriching itself for decades at the expense of ordinary citizens.
He chose the chainsaw as his political symbol — an instrument with which he intended to “cut away” everything he deemed unnecessary from the state. The president declared his main enemy to be the so-called political caste: civil servants, trade-union leaders, bankers, entrepreneurs, journalists, and intellectuals. In public speeches, Milei did not mince words, calling his opponents “pathetic rats” and “dirty leftists,” and describing the state as a structure that provoked in him “boundless contempt.”
Ideologically, Milei relies on hardline neoliberalism. Among his role models, he has repeatedly cited Margaret Thatcher, emphasizing that the radical reforms of 1980s Britain exemplified how economic stagnation could be broken.
“No hay plata.” Mass layoffs and the closure of ministries
Immediately after coming to power, Milei’s administration began implementing its promises. The central slogan became “No hay plata” — “There is no money.” Public spending fell from about $61 million in 2023 to roughly $42.5 million in 2024.
In the summer of 2024, a Ministry of Deregulation and State Transformation was created, headed by Federico Sturzenegger, a former central bank governor and one of the president’s key economic allies. In its first months, the ministry reported the closure of more than 200 government institutions.
Structures dealing with climate policy, anti-discrimination efforts, gender issues, human rights, tourism development, and support for local communities were cut. Cultural institutions were also shut down, including a clothing museum specializing in the preservation of national costumes from Argentina and Latin America. According to trade unions, austerity reached absurd levels: institutions under the Ministry of Culture were no longer even supplied with toilet paper.
Between December 2023 and October 2024, Milei eliminated 13 ministries and cut around 30,000 civil-service jobs, about 10% of the entire state bureaucracy. Teams of archivists and investigators were disbanded; they had helped prosecute crimes committed during the dictatorship and identify children who had been illegally adopted.
Inflation fell, but poverty and unemployment remained
Beyond staffing cuts, Milei froze or canceled a significant share of budget programs. Infrastructure spending fell by 74% in the first ten months of his presidency, education by 52%, social development by 60%, healthcare by 28%, and transfers to provinces by 68%. Programs supporting low-income families, farmers, and the elderly were rolled back, along with initiatives aimed at ensuring access to medicines, preventing violence against women, and curbing the spread of diseases.
Pensioners were hit particularly hard. Pension indexation in April 2024 reflected inflation at the end of 2023, but by the time payments were made, prices had already surged. According to economists, pensioners’ purchasing power declined by about 23% during Milei’s presidency. The president vetoed pension-increase bills three times, arguing that they would undermine budgetary balance.
At the same time, Milei points to falling inflation as the key achievement of his reforms. Almost immediately after taking office, he devalued the peso by 54%, sharply reducing consumption. By the end of 2024, monthly inflation had dropped to 2.4%, and annual inflation fell from over 200% to around 30% by the fall of 2025. For the first time since 2011, Argentina recorded a budget surplus.
Social tension and protests
Economic stabilization came at the cost of a sharp decline in living standards. Over two years, analysts estimate that around 200,000 people lost their jobs, 18,000 businesses closed, and unemployment reached 7.9% in June 2025, the highest level since 2021.
From the fall of 2024 onward, mass protests erupted across the country. Pensioners, people with disabilities, and former civil servants played a prominent role. In March 2025, authorities began forcibly dispersing demonstrations. According to human-rights groups, police used rubber bullets, water cannons, and pepper spray, and arrests were accompanied by violence. Videos showing the beating of an elderly woman and the severe injury of photographer Pablo Grillo, who suffered a skull fracture while covering the protests, sparked widespread outrage.
Corruption scandals and U.S. support
Corruption scandals became another source of criticism. In February 2025, Milei publicly promoted the cryptocurrency $LIBRA. Its value surged, then collapsed after the president stated that he was not connected to the project. According to civic organizations, tens of thousands of investors suffered losses totaling billions of dollars.
Another scandal involved the president’s sister, Karina Milei, who was appointed secretary general of the presidential office. Journalists alleged that she was involved in the embezzlement of funds allocated for purchasing medicines for people with disabilities. The authorities rejected the accusations and claimed an attempt at political discreditation.
Amid internal pressure, U.S. support became a key factor in Milei’s resilience. Donald Trump openly calls him an ally and a “MAGA man,” while Washington granted Argentina a $20-billion swap line. In return, Buenos Aires adopted a strongly pro-American stance in foreign policy, including voting patterns at the UN and the possible withdrawal from climate agreements.
Why Milei’s project has survived for now
Despite protests, rising unemployment, and corruption allegations, Milei’s party, “La Libertad Avanza”, won the parliamentary elections in the fall of 2025. Political analysts attribute this to the weakness and fragmentation of the opposition, as well as public distrust toward forces associated with previous economic failures. For many voters, Milei is not so much a popular leader as the only alternative to the old system. His experiment is seen as risky but, in the eyes of part of society, unavoidable.
What comes next
Javier Milei still has two years left in his presidential term. Macroeconomic stabilization has given him a temporary respite, but social tensions remain unresolved. If poverty and unemployment continue to rise, even the support of his most loyal followers may prove insufficient. Argentina under Milei has become a radical neoliberal experiment. Its outcome will determine not only the fate of the president himself, but also the direction the country will take in the decades ahead.
