Αργεντινή: Νέος πρόεδρος της χώρας ο άκρως φιλελεύθερος Χαβιέρ Μιλέι, οπαδός της «θεραπείας σοκ»

[Προέλλην]

Deregulatory Lessons from Argentina: How Javier Milei Lowered Rent Prices 40%

country with a unique record of poor policies revealing the damaging effects of price controls has just demonstrated how effective their removal can be.

In 2020, the Argentine Congress passed a new rent regulation, promoted by Representative Daniel Lipovetzky (Cambiemos). The “Lipovetzky Law” introduced three major features: it extended the minimum lease term from two to three years, mandated annual rent adjustments based on an average of inflation and nominal wage indices, and required rents to be priced in pesos rather than dollars.

The law was implemented amidst Argentina’s high, growing, volatile inflation, and during the start of the new Kirchnerista presidency under Alberto Fernández. A perfect uncertainty combination. Unsurprisingly, the impact of this rent control law, especially in such an uncertain economic climate, was substantial. By forcing rents to be priced in pesos and making future payments unpredictable, the Lipovetzky Law imposed costs on landlords. Predictably, landlords responded by increasing initial rents on new leases or, in some cases, pulling their properties from the market altogether. In 2022, Buenos Aires had 200,000 vacant properties—a 48 percent increase since 2018. Real rental prices surged; in 2020, inflation was 36 percent, yet studio rents in Buenos Aires increased by 57.1 percent, with two-bedroom and three-bedroom units rising by 47.1 percent and 60 percent, respectively.

The situation also worsened for tenants. Before the Lipovetzky Law, landlords and tenants typically agreed on semiannual rent adjustments, with room for renegotiation. Both parties knew the exact monthly rent for a two-year lease and could adjust terms if necessary. This flexibility vanished under the new law’s automatic annual adjustment, based on inflation and wage indices. Since nominal wages often rose more slowly than inflation, tenants faced a real increase in rent, creating financial strain and making it difficult for many to meet their obligations. Though the law was intended to support tenants, it backfired — 85 percent of tenants reportedly opposed it. This outcome was so striking that the term “Lipovetzky Effect” was coined to describe policies that inadvertently achieve the opposite of their intended goals.

Predictably, a black market flourished. Reports indicated some landlords and tenants backdated lease agreements to avoid the law and engaged in informal rental agreements among friends and family.

Once President Javier Milei took office, he repealed the Lipovetzky Law by decree, which quickly reversed its effects. Rental unit supply increased by over 170 percent, and real rental prices dropped by 40 percent from October 2023 levels. Note not only the magnitude of the improvement in this market, but also the immediate effect after the Lipovetzky Law is removed. This market improvement is largely attributed to the repeal of the Lipovetzky Law, allowing landlords and tenants to once again agree on lease terms and price adjustments freely, even in dollars if preferred.

However, there’s another factor at play. Lipovetzky’s Law introduced a new level of regulatory uncertainty. But this uncertainty did not vanish with the removal of the rent controls. Now, fearing future regulations, many landlords are eager to lock in leases or sell properties before rental controls come back, or, for instance, a tax on unoccupied residential properties. Ironically, part of the recent improvement in the rental market can be traced back to this regulatory uncertainty.

https://thedailyeconomy.org/article/der ... -prices-40
https://www.wsj.com/world/americas/arge ... t-5345c3d5

[Προέλλην]

https://data-explorer.oecd.org/vis?fs[0]=Topic%2C1%7CEconomy%23ECO%23%7CPrices%23ECO_PRI%23&pg=0&fc=Topic&bp=true&snb=16&df[ds]=dsDisseminateFinalDMZ&df[id]=DSD_PRICES%40DF_PRICES_ALL&df[ag]=OECD.SDD.TPS&df[vs]=1.0&pd=%2C&dq=ARG.M.N.CPI.PA._T.N.GY&ly[rw]=REF_AREA&ly[cl]=TIME_PERIOD&to[TIME_PERIOD]=false&vw=tb

H γραφική δείχνει μέχρι τον Απρίλιο του 2025. Τον Ιούλιο 2025 που είναι τα τελευταία διαθέσιμα στοιχεία, ήταν στο 36.57

Τι κάνει αυτός ο τρελός τέλος πάντων

[Προέλλην]

Αργεντινή: Μεγάλη νίκη για τον Μιλέι στις ενδιάμεσες εκλογές

27.10.2025

Ο Μιλέι κερδίζει υποστήριξη για μεταρρυθμίσεις μετά από εβδομάδες αναταραχής στην Αργεντινή

«Σήμερα είναι σαφώς μια ιστορική μέρα για την Αργεντινή», δήλωσε ο Μιλέι στους επευφημούντες υποστηρικτές του στα κεντρικά γραφεία του κόμματός του στο Μπουένος Άιρες. «Ο λαός της Αργεντινής αποφάσισε να αφήσει πίσω του 100 χρόνια παρακμής και να επιμείνει στον δρόμο της ελευθερίας, της προόδου και της ανάπτυξης».

https://www.ot.gr/2025/10/27/diethni/ar ... es-ekloges

[pluton]

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[Προέλλην]

Javier Milei two years in office – Impressive successes and momentum heading into the new year


Milei has stabilised the Argentine economy, poverty is falling

When Milei took office, he inherited the world's highest inflation rate of 211% from the previous Peronist government. Currently, at 31%, it is at its lowest level since 2018. Forecasts for 2026 predict a further decline to 20% on average.

The budget is showing a surplus for the first time in 14 years, achieved through significant cuts in government spending, in particular by merging ministries and abolishing agencies, reducing subsidies and laying off 56,000 civil servants to date, many of whom had been hired by the previous government at short notice as a welfare measure for loyal party cadres despite empty coffers.

Despite these savings, the Argentine economy is growing this year: the IMF expects 4.5% growth on an annual basis, the highest growth rate in Latin America.

The positive economic development also explains why poverty in Argentina is now actually declining despite the reduction in government spending. According to independent figures published last week by the Catholic University of Argentina (UCA), the poverty rate is at its lowest level since 2018, at 36%. This decline was achieved, among other things, through more targeted assistance for large families, which Milei has even increased compared to the previous Peronist government – focused aid for those who are truly in need instead of aimless, expensive subsidies for everyone. As a result, according to UNICEF, 1.7 million children have been lifted out of poverty.

Argentina attractive for investment again

With the consistent dismantling of regulations and bold liberalisation from the housing market to air transport and the reduction of customs duties and price controls from imported goods to the national drink mate tea, by Deregulation Minister Federico Sturzenegger, Argentinians now pay lower prices and enjoy a better selection, and domestic and foreign companies are investing in the country again.

With the RIGI programme, the Argentine government is promoting large foreign investments of over USD 200 million with 30-year tax, customs and regulatory relief. In the mining sector alone, with its rich deposits of lithium and copper, among other things, investments totalling USD 31 billion have been announced to date. In addition, there are further investment projects in the energy sector, where Argentina has a broad diversification strategy ranging from renewable energies to gas and oil and the expansion of nuclear energy. Just last week, Argentine and German companies agreed to cooperate on the supply of LNG gas to Germany. In addition, with the help of foreign investment, Argentina aims to develop into a hub for artificial intelligence, benefiting from cheap energy, lean regulation and the Argentinians' high affinity for technology.

Broad public support for Milei

Given the impressive economic successes, it is not surprising that Milei enjoys strong support among the population. According to figures published last week by the opinion research institute Opina Argentina, 49% of Argentinians have a positive opinion of Javier Milei – compared to 23% for German Chancellor Friedrich Merz (latest Insa poll). This makes Milei – on a par with the former security minister and new Senate leader Patricia Bullrich – by far the most popular politician in the country.

The Argentine population gave Milei a clear mandate for his reform course in the congressional elections on 26 October. With 41%, his party ‘La Libertad Avanza’ was well ahead of the Peronist ‘Fuerza Patria’ with 32%. With 95 members of parliament, ‘La Libertad Avanza’ has the largest parliamentary group in the National Assembly, after several MPs joined it since the election. This is the first time since 1989 that the Peronists no longer have the largest parliamentary group.

This election victory was by no means a foregone conclusion, as Milei suffered a painful defeat in the provincial elections in Buenos Aires at the beginning of September – a warning shot after repeated allegations of corruption against his close circle, including his sister and key advisor Karina, which he had been too hesitant to address. But in the congressional elections, which determined the future course of the country, Argentinians gave Milei a second chance, mainly because the majority had no desire to see a return to Peronism and its economic failures.

‘Plan for a great Argentina again’

Milei now has a good chance of working with other reformists in Congress – in particular the conservative PRO party of former President Mauricio Macri – to push the 2026 budget and structural reforms central to further economic development (taxes, labour market, pensions, federalism) through Congress.

He has already presented clear ideas for this in his ‘Plan for a Great Argentina Again’: bold reforms, combined with a clear, positive message about why they are necessary so that Argentina can return to its former glory. Aware of the importance of constructive dialogue with other reform forces in Congress, but also with the governors, who are important in federal Argentina, Milei has been presenting himself as statesmanlike, conciliatory and less aggressive in his demeanour since the congressional elections (by his standards).

For the next phase of the reform course, which is now beginning, the Christmas break for MPs will (once again) be shorter this year. Milei has already announced special sessions of Congress until 30 December, possibly even 31 December. Milei – and all political leaders in Argentina – are facing important months of decision-making. The experience of the last two years should give confidence that a reform-oriented economic policy not only works in theory, but also brings concrete results and improvements for the population in practice.

This also provides an important insight for the current challenges in Germany, where hesitancy and blinders to reality prevail instead of bold reforms. Focusing on the essentials and having the courage to do the right thing pays off!

https://www.freiheit.org/argentina-braz ... cesses-and