Germany must not ignore the dismantling of democracy in Argentina

In parts of Germany and elsewhere in Europe, the euphoria surrounding Argentinian president Javier Milei's so-called “libertarian experiment” seems undiminished. In Argentina itself, however, the picture looks rather different. During my visit to the country a few weeks ago, opposition politicians and our partners from Argentinian civil society spoke of immense concern within the population over Milei’s plans. The president is not only planning a massive reorganisation of the economy; democracy is also to be radically restructured and dismantled. In 1970s Chile, this was brought about with a military putsch. In today’s Argentina, instead of via a coup d’etat, it will be achieved with the approval and support of international ultra-right forces. We in Europe must not close our eyes to this.

Since taking office in December 2023, Milei has been pursuing a radical strategy of cuts and market liberalisation in order to get Argentina’s inflation and budget deficit under control. This drastic approach, much celebrated in Germany, indeed led to the country’s inflation rate falling to 4.2 percent in May, its lowest level for two and a half years. However, large sections of society see this as a “save to ruin” strategy – for example in view of the mass redundancies carried out in the public sector, the suspension of public construction and infrastructure projects, and harsh cuts to pensions and social programmes. The budget disbursements of all government ministries – with the exception of internal security and national defence – were frozen until April. And in June, electricity, gas, water, and transport prices were further increased.

The social cost of these measures is high. More than half of Argentinians are living in poverty, with almost 18 per cent finding themselves in absolute poverty, meaning they are unable to even meet their basic needs. At the same time, the government has been suspending food deliveries to aid organisations for months, further exacerbating the situation for many people. Moreover, the Argentinian economy is heading into recession. Many small and medium-sized companies have scaled down or stopped production entirely and laid off workers, while many large companies are postponing investments or relocating new projects to other countries, such as Brazil.

But Milei is not only attacking government spending. Democracy itself is also a thorn in his side. Part of his reform package, which was narrowly approved by the Senate last week, is the introduction of a so-called one-year “state of economic emergency”. This could allow the president to rule by decree in future, bypassing Congress and giving him complete freedom to reorganise, dismantle, or gut state institutions and areas of responsibility.

To some extent, this is inherent in the reform package itself. At its centre are incentives for large-scale investments in mining, agriculture, and oil and gas extraction in the form of far-reaching tax exemptions and the unconstitutional circumvention of laws and environmental protection regulations. In future, conflicts between the Argentinian state and investors will be settled before the controversial ICSID arbitration tribunal in Washington, thereby suspending Argentinian jurisdiction. Businesses would also be guaranteed 30 years’ unlimited access to operational resources such as water, gas, and electricity – with the result that the state would not be able to guarantee supplies to its citizens in the event of an emergency. (Our partner organisation FARN has analysed the potential impacts of this policy.) If Argentina also opens its markets at the same time, the small and medium-sized enterprises that have characterised the country’s economy to date will have little chance of survival. Against this backdrop, the social and ecological transformation of Argentina’s economy and infrastructure, which the country needs just as much as the rest of the world in the face of heatwaves and droughts, appears extremely challenging.

The attempt to make constitutional breaches practically unchallengeable in the interests of private investors should not be misunderstood by them as legal certainty. Rather, Milei’s reform package enables a radical restructuring of Argentinian democracy, its constitutional institutions, and democratically organised negotiation processes. It also threatens to become a blueprint for other countries.

From this perspective, the IMF’s decision to provide Argentina with another loan to the tune of almost 800 million US dollars is hard to comprehend. What’s more, Milei’s economic reform package is accompanied by a drastic toughening of security laws. This increases the likelihood of the violent suppression of social protests and the criminalisation of their participants. It also eases rules on the use of firearms by security forces. The enforcement of the “libertarian project” on the streets is also supported by constant accompaniment on social media. By means of well-organised campaigns, supporters and members of the government incite hatred against social protests and aid organisations, strikers and trade unions, human rights activists, feminists, and members of the opposition.

Milei is attempting to reverse a number of notable political achievements of recent years – and this within a very brief time period. One of the first measures taken by the new government was to dissolve the Ministry of Women, Genders and Diversity and close numerous counselling and protective services. On International Women’s Day, the “Women’s Hall” in the presidential palace was renamed the “Hall of the Fathers of the Republic”. Terms and legal concepts such as femicide and violence against women and girls are now officially rejected.

Argentina’s politics of remembrance and the democratic consensus on dealing with the crimes of the military dictatorship are also being publicly questioned: the low point so far was the relativisation of the crimes of the last military dictatorship (1976-1983) in the context of the 48th anniversary of the coup on 22 March 2024. This is already making the work of numerous civil society organisations more difficult, and, in conjunction with the far-reaching financial cuts, is causing them considerable pressure and difficulties in their work.

Milei denies the social consensus on various issues, including the climate crisis and international climate policy. The presidential office defames global warming as a “left-wing invention” that “finances the socialist agenda with more taxes”. With these statements, the presidency and parts of its entourage are seamlessly aligning themselves with the discourse of international ultra-right-wing networks.

Milei’s foreign policy also warrants close attention. His government relies on close relations with the USA and Europe, while at the same time positioning itself within the international network of right-wing actors. His latest appearance as a guest speaker was at an EU election campaign kick-off event organised by Spanish right-wing party VOX in Madrid on 19 May, where he lashed out at targets including the European Union. In February, he was fêted at the Conservative Political Action Conference (CPAC) in the USA, where he met with Donald Trump.

Europe could, of course, turn a blind eye to all of this and focus primarily on access to raw materials and trade interests, for instance the possible signature of the EU-Mercosur agreement. However, it is important to recognise that Milei’s turn to the West does not mean that he shares Europe’s fundamental commitment to democracy and international law. Key players in Milei’s government understand “the West” primarily as an alliance of free markets, not a political value project. And Milei’s distance from Brazil and China has so far been more rhetorical than substantive.

Especially at a time when democracies around the world are coming under increasing pressure, both the European Union and Germany should reflect on the political substance of possible partnerships beyond legitimate economic interests. For Argentina, the latent threat to democracy and society and the dynamics that Milei’s reform package could trigger should not be underestimated – or worse, ignored. In Chile, various reform-orientated governments have been unable to expand the legal and political scope for democratically legitimised economic, environmental, and social policies. Thirty-four years after the end of the military dictatorship, its legacy – in the form of dismantled democratic institutions and an extremely liberal constitution – still dominates the country’s political landscape. This should be a warning to us all. Western-style democracy is no longer guaranteed anywhere in the world – and, in case of doubt, trade relations are no substitute for political alliances of democratic nations.
 

böll.column

Get involved! There’s no other way to be real – thus the message of Heinrich Böll, and, to this day, his encouragement is inspiring us. With this column the Presidents of the Foundation involve themselves in current social and political debates. This column will appear each month, authored, in turn, by Jan Philipp Albrecht and Imme Scholz.

Note: An earlier version of this column indicated that Javier Milei was to be welcomed to Germany with military honors. Both the welcome with military honors and a joint press conference with Olaf Scholz were canceled shortly before Milei's visit..