BUENOS AIRES – Argentine President Javier Milley signed a long-delayed agreement with state governors early Tuesday to broaden support for economic reforms and strengthen his nearly seven-month-old minority government.
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The agreement, signed with 18 governors after midnight, aims to ease market doubts about Millay’s ability to weather the worst economic crisis in decades that has pushed half the population into poverty and sent inflation soaring to nearly 300 percent.
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“Argentina is at a turning point,” Millay, a radical liberal economist, said in a speech in the northern city of Tucuman, where Argentina declared independence from Spain more than two centuries ago.
“The public is demanding a change of direction.”
Markets rallied strongly when Millay took office in December but bonds and the peso have come under new pressure since the economy fell into recession and political tensions have risen.
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Milley’s Liberal Democrats do not have a majority in Parliament and no governor, so they must negotiate with other parties to get their policies done.
Among the 10 points included in the agreement, the Milley government highlighted non-negotiable balanced budgets, deep cuts in public spending, tax reform and labor reforms.
“This agreement shows that governors from different parties can join forces and that the central government can deliver on this promise,” MartÃn Llora, governor of the central state of Córdoba, told reporters late on Monday.
In late June, Argentina’s Congress, backed by Finance Minister Milley, passed two major legislative reforms aimed at revitalizing the economy, cutting public spending and attracting private investment. But markets fell last week.
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On Monday, the peso fell about 2 percent in the parallel unofficial market, hitting a record low of 1,450 pesos to the dollar.
The signing of the agreement was postponed from May 25. The accord, known as the “May Accords” after Argentina’s May Revolution against colonial power Spain, was signed in the historic building where independence was formally declared in 1816.
This article has been generated from an automated news agency feed without any modifications to the text.
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