Why Argentina’s general strike is a wake-up call for Milei’s government
Argentina is facing a major social and political crisis as the country’s largest labor union, the General Confederation of Labor (CGT), has called for a nationwide general strike on Wednesday, January 24, to protest against President Javier Milei’s shock economic agenda.
The strike, which will affect sectors from transport to banks, is the biggest challenge yet to Milei’s plans for spending cuts, privatization, deregulation and labor reform since he took office last month, promising to fix an economy plagued by 211% inflation and unsustainable debt.
The CGT, which represents more than 3 million workers and has close ties to the opposition Peronist party, has denounced Milei’s measures as “neoliberal”, “anti-worker” and “anti-national”. The union has also used the courts to temporarily suspend some aspects of Milei’s “mega-decree”, which aims to simplify and liberalize the economy by eliminating regulations and subsidies.
The strike comes amid growing discontent and hardship among millions of Argentinians who have seen their purchasing power eroded by soaring prices, stagnant wages and rising unemployment. According to official data, poverty affects more than 40% of the population and informal work accounts for almost half of the labor force.
Milei, an economist and former TV pundit who won a surprise election victory last year with his libertarian platform, has defended his policies as necessary to restore fiscal balance, attract investment and revive growth. He has also accused the CGT of being “mafia unionists” who are resisting change and defending their privileges.
However, analysts warn that Milei’s economic “shock therapy” may be too radical and too fast for a country that has a long history of social unrest and political instability. They also point out that Milei lacks a majority in Congress and faces strong opposition from powerful interest groups, such as unions, businesses and provincial governments.
“Milei is trying to do too much too soon without enough political support or social consensus,” said Carlos Fara, a political consultant based in Buenos Aires. “He is risking a backlash that could undermine his legitimacy and derail his reforms.”
Fara added that the general strike was unlikely to have a significant impact on Milei’s policies in the short term, but could become a catalyst for further mobilization and confrontation if the economic situation does not improve soon.
“The strike is a warning sign for Milei that he cannot ignore the social costs of his adjustment,” Fara said. “He needs to find a way to dialogue with the unions and other sectors of society and to moderate his discourse and his actions.”
Milei’s government has not shown any signs of willingness to compromise or negotiate with the CGT or other critics. On the contrary, it has adopted a confrontational stance, threatening to dock a day’s pay from each striking public servant and setting up an anonymous hotline for people to report “threats and pressure” on workers to join the strike.
Milei has also vowed to press ahead with his “omnibus” bill, which seeks to overhaul the tax system, the pension system, the labor market and the public administration. The bill, which is currently being debated in Congress, has faced resistance from opposition lawmakers as well as some allies of Milei who fear losing their influence or resources.
Milei’s ambitious reform agenda is partly driven by his commitment to renegotiate Argentina’s $44 billion debt with the International Monetary Fund (IMF), which he inherited from his predecessor Alberto Fernández. Milei has said he wants to reach a new deal with the IMF by March that would extend the repayment period and lower the interest rate.
However, the IMF has made clear that it expects Argentina to implement credible and sustainable fiscal and structural reforms as a condition for any debt relief. The IMF has also expressed concern about the social impact of Milei’s policies and urged him to protect the most vulnerable segments of society.
“Milei is caught between a rock and a hard place,” said Benjamin Gedan, deputy director of the Latin America Program at the Wilson Center in Washington. “He needs to satisfy the IMF’s demands while avoiding a social explosion at home.”
Gedan said that Milei’s economic strategy was risky but not necessarily doomed to fail. He said that Milei could benefit from a favorable external environment, with high commodity prices, low interest rates and strong demand from China. He also said that Milei had some popular support from people who are fed up with decades of economic mismanagement and corruption.
“Milei has a window of opportunity to implement his reforms if he can show some positive results soon,” Gedan said. “But he also needs to be pragmatic and flexible enough to adjust his policies if they prove too costly or unpopular.”
The outcome of Milei’s economic experiment will have profound implications not only for Argentina, but also for the region and the world. Argentina is Latin America’s third-largest economy and a key player in regional and global affairs. It is also a test case for the viability and desirability of libertarian policies in a developing country with deep social and institutional challenges.
The general strike on Wednesday will be a crucial moment for Milei’s government and for Argentina’s future. It will reveal the strength and resolve of both the supporters and the opponents of Milei’s vision. It will also show whether Argentina is ready for a radical change or whether it will revert to its old patterns of conflict and crisis.
