At the Quinta de Olivos, President Javier Milei and Secretary General of the Presidency Karina Milei celebrated Argentina’s victory in the World Cup round of 16. But upon resuming the workday, the president shook the political board with an announcement that promises to be as drastic as it is controversial: a shutdown of the National Executive Branch, similar to the one applied in the United States when the budget runs out.
«When the budget runs out, the state shuts down,» Milei stated in a telephone interview, making it clear that his government is not willing to continue financing public spending it considers excessive. The idea, which he had already outlined during the campaign, now takes concrete form: a state shutdown that would suspend all non-essential services, while public employees would go on temporary unpaid leave.
But the plan does not end there. Milei summoned Economy Minister Luis Caputo, Minister of Deregulation and State Transformation Federico Sturzenegger, and Central Bank of the Argentine Republic (BCRA) President Santiago Bausili to Olivos at 6 p.m. The goal: to define the details of modifications to the BCRA Charter to penalize unbacked monetary issuance and, in passing, cut off financing of the fiscal deficit at its root.
«BASES FOR THE NEW GOLDEN ERA,» Milei posted on X, as the meeting progressed. «Starting to finalize details on the Reform of the BCRA Charter, the bases of the STATE SHUTDOWN, the new Capital Markets Law, and the beginning of the deregulation of the Insurance Market. VLLC!» he wrote, euphoric.
The government comes from 10 months of rising inflation with a peak of 3.4% in March and two months of decline, to which June would be added. During the period of increase, Milei accused the «kuka risk» of generating the price rise, since there was no deficit to explain it — the government has a fiscal surplus. However, the libertarian struggled to defend that «inflation is always and everywhere a monetary phenomenon,» but after that chapter, he now pushes for changes in the monetary authority’s Charter.
In the afternoon, Milei posted again: «TAKE NOTE. A set of reforms is coming that will allow us to emerge from more than 90 years of decadence gestated by the ca$ta with their delusional monetary and fiscal policies. VLLC!» He attached a fragment of the interview he gave to Neura where the President states that «today the drafting of the reform of the Central Bank Charter will begin and assured that they will seek to penalize monetary issuance. It is interrelated with changes in fiscal innocence and the insurance market and fiscal rules.» «How great, another country Javi!» celebrated host Alejandro Fantino, and asked: «Could issuance be penalized?» «Exactly,» replied Milei.
«I’ll give you another exclusive,» said Milei, and elaborated: «We are working on the drafting of the shutdown of the Executive Branch, actually of politics.» And he explained: «When you run out of budget, you can’t spend anymore and the state shuts down.» The model is the American one: when the US government says it runs out of budget, an emergency protocol is activated that divides its functions. Essential services continue to operate normally: armed forces, air traffic control, prisons, postal service, national security, and medical emergencies. But non-essential ones are suspended immediately: national parks, museums, zoos, administrative procedures, and the issuance of certain permits and credentials. For national public administration employees, temporary unpaid leave is set, while another group must continue working as emergency personnel, but without receiving a salary until the budget is approved.
The measure, if applied in Argentina, would be a political earthquake. Milei, true to his style, does not mince words: he promises to cut the chain of spending and expose what he calls «the caste.» But is the country ready for a state shutdown? Time will tell whether the president manages to impose his agenda of radical reforms or whether the opposition and affected sectors manage to stop him. For now, the meeting at Olivos marks the beginning of a new stage in the libertarian administration.
Para mí esto huele a choreo de manual, Milei quiere apagar el Estado para entregarle la guita a los amigos del FMI. Se creen que Argentina es una empresa falopa, se van a tener que atar laburantes. No al ajuste, no al hambre, fuego con estos lacayos del capital. ¡Viva la lucha popular!
Para mí, ¡por fin un presidente con cojones! Milei va a apagar este estado corrupto de mierda. Que se vayan todos los kirchos y zurdos a llorar a otro lado. Esto huele a libertad carajo, viva la puta madre!