Pro-Bitcoin President Javier Milei Faces Biggest Test Yet After Argentina Wakes Up To 24-Hour Strike: 93K Passengers To Be Affected, Say Reports

Argentina is experiencing its second nationwide transport strike since President Javier Milei took office in December. The strike, which has disrupted the operations of trains, subways, and several bus lines, is seen as a significant challenge to Milei’s administration.

What Happened: The 24-hour strike has paralyzed the Buenos Aires metro area, affecting approximately 93,000 passengers with flights. This marks the second major strike Milei’s administration has faced, indicating mounting public opposition, Bloomberg reported on Thursday.

The current strike holds more weight than the first one in January. Milei has altered his legislative approach, choosing to negotiate with moderate political factions rather than enforcing reforms through decree. His key legislation, filled with pro-business measures, is set for a Senate vote this month after clearing the Lower House in April.

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However, strong unions are opposing Milei’s proposed reforms, which aim to cut companies’ severance costs and advance his austerity campaign. Investors are keenly observing Milei’s progress in Congress, considering it as a sign of his capability to execute a market-friendly agenda that could allow Argentina to re-enter international capital markets.

Why It Matters: This strike comes in the wake of Argentina’s deepening recession, which has been linked to Milei’s policies such as a 54% currency devaluation in December and significant government spending cuts. The manufacturing and construction sectors reported some of their sharpest declines in March since the COVID-19 pandemic, with employers in both sectors planning to reduce staff, according to official data published on Wednesday.

In an attempt to address severe inflation and currency devaluation, Argentina under Milei introduced 10,000 peso notes. Despite the economic challenges, Argentina’s stock market has been performing well, even outperforming the S&P 500.

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Image by President of the Republic of Armenia via Wikimedia Commons