Argentina's Libertarian President Pushes Privatization Plans
President Javier Milei now looks to move forward with an aggressive program of selling off state-owned enterprises after gaining a working majority in Argentine Congress.
Objective Facts
After gaining a working majority in Congress with passage of a labor reform bill, President Javier Milei now looks to move forward with an aggressive program of selling off state-owned enterprises. With Federico Sturzenegger as minister for "deregulation and state transformation," Milei looks to privatize Argentina's principal freight rail carrier, the water and sewage company serving Buenos Aires, the national postal service, a coal mining firm, and the operator of two nuclear power plants. Four of the six state-run companies targeted for privatization closed 2025 in surplus, making privatizations the government's key strategy for raising dollars to reinforce central bank reserves. However, re-privatizing the state's majority share in YPF would require not only congressional approval but also approval of oil-producing provinces. Argentine regional media emphasizes labor union resistance and social costs of privatizations, focusing on job losses and service quality concerns more heavily than Western outlets.
Left-Leaning Perspective
The General Confederation of Labour (CGT), Argentina's largest trade union confederation, warned it will not accept rollback of rights, declaring through CGT health sector representative Héctor Daer: "We are not going to allow the stripping of rights and much less the payment of salaries." The CGT organized general strikes in April 2025 drawing workers, unemployed, pensioners, and others affected by austerity measures, explaining "In the face of intolerable social inequality and a government that ignores calls for better wages and a dignified standard of living for all, the workers are going on strike." Labor unions contend that the government's reforms unfairly burden low- and middle-income earners, while large businesses and affluent individuals enjoy disproportionate benefits, with concerns about erosion of collective bargaining power, expansion of temporary contracts, and privatization of previously secure public sector positions. The left-leaning opposition pledged to oppose the omnibus bill as Peronist politician Santiago Cafiero stated: "We reject the Omnibus bill because it puts fuel in Milei's chainsaw to hurt the daily lives of Argentines." Left-wing critics argue that privatization will put goods and services out of reach for everyone who cannot afford these necessities-cum-luxuries, asserting that quality of life for normal Argentineans will suffer as a result and economic disenfranchisement will necessarily correlate with loss in political power among those classes.
Right-Leaning Perspective
David Harsanyi, senior writer at the Washington Examiner, noted Milei "removed price controls, got rid of tariffs and opened trade, privatized a slew of government-run agencies, cut red tape, weakened union monopolies, made major cuts in spending and eliminated an array of needless state jobs," contrasting this with criticism from 100+ economists warning of "devastation" from his policies. Harsanyi criticized previous skeptics like Felix Salmon and Paul Krugman, noting Krugman had argued there was "no plausible scenario" in which $20 billion would "save Javier Milei's failing economic strategy." Writing in Capitalism Magazine citing Cato Institute analysis, libertarian commentators argue Milei's deregulations are "cutting costs, increasing economic freedom, reducing opportunities for corruption, stimulating growth, and helping to overturn a failed and corrupt political system," with Federico Sturzenegger describing the Peronists as "the manager of the status quo" and "the manager of the vested interests." A Cato Institute analysis states that during Milei's first 20 months, "he has achieved more than what most people expected, and in many ways has made Argentina's move toward liberal democracy an example for an increasingly illiberal world." Right-leaning sources note Argentina has "embarked on a deregulation push, which is yielding impressive results, despite fierce opposition from Congress and special interests," citing examples like deregulation of Buenos Aires' rental housing market resulting in supply surge of 212% with real prices falling 27%.
Deep Dive
Milei's privatization push comes after he gained a working majority in Congress through midterm elections, fundamentally altering the legislative landscape that had constrained his earlier reform efforts. The privatization agenda represents both ideological commitment and fiscal necessity: the government's strategy is to generate income in dollars from the sale or concession of state-run companies, which is crucial given that accumulation of foreign currency is still one of the main concerns facing its economic programme. Milei faces a critical tension: while he aims to avoid corruption scandals that plagued Carlos Menem's 1989-1999 privatization program, Aerolíneas Argentinas presents an awkward case—it achieved profitability without subsidies in 2025 after re-nationalization but remains excluded from easy-to-privatize entities and requires congressional approval. Even market-oriented analysts note the government may lack clear strategy, warning that "before selling, the state should evaluate what investments are needed to modernize those companies and make them competitive," as "the experience of the '90s shows that selling without a strategic framework or oversight leads to service losses or forces the state to step in again." The Wall Street Journal warned in April 2026 that despite Argentina receiving a $20 billion swap from the US and the government reducing the state size and lowering inflation, "estos avances económicos sirvieron poco para impulsar la economía nacional" (these economic advances helped little to boost the national economy) because "investment in sectors that generate employment, like manufacturing and services, remains weak, and unemployment increased." The central unresolved question is whether privatization will generate the investment and employment growth needed for political sustainability or whether, as left critics warn and history suggests, rapid asset sales without strategic planning will eventually require renationalization.
Regional Perspective
On April 10, 2025, Argentina witnessed a nationwide general strike led by the General Confederation of Labor (CGT), the third such protest during Milei's tenure, disrupting transportation, banking, education, and public services with an estimated economic loss of $880 million, driven by protests against massive public sector layoffs (over 42,000 state employees dismissed), pension cuts, and government intent to privatize state-owned enterprises including Aerolíneas Argentinas. Héctor Daer, CGT health sector representative, stated "We are not going to allow the stripping of rights and much less the payment of salaries," with the Metallurgical Workers' Union declaring Milei's measures "are not good for the workers, such as the paralysis of public works," and the Association of State Workers' General Secretary Rodolfo Aguiar vowing "we will defend with all our strength the jobs and public policies we have won." Argentine reporting via La Nación shows that despite Milei's free market reforms and inflation reduction, "problemas históricos del país como el desempleo, los bajos salarios, la inflación" (historical problems like unemployment, low wages, inflation) persist and "los votantes no vieron los beneficios" (voters did not see benefits), with presidential popularity declining 10 percent year-over-year to its lowest level since taking office according to Atlas Intel polling. Argentine regional emphasis differs from Western financial press coverage by foregrounding social costs and worker displacement rather than macroeconomic stabilization metrics.