Recently, Javier Milei went on a tour through Europe. He had initially planned to visit Spanish President Pedro Sánchez. However, his statements about Sánchez’s wife overshadowed the meeting. Milei is known for his exaggerated, direct, and often populist statements. Young Argentines, in particular, see him as a beacon of hope that could lead the country back to its former glory of 1913, a time when Argentina ranked among the top ten wealthiest countries per capita globally, surpassing France, Germany, and Italy.
The next stop was Germany. Before meeting Chancellor Olaf Scholz, Javier Milei was awarded the Hayek Medal by the Hayek Foundation in Hamburg on June 22nd. This medal was previously awarded, among others, to the Polish reformer Leszek Balcerowicz. In his eulogy speech, Stefan Kooths, president of the Hayek Society and economist, explained that Hayekians see Javier Milei as one of those rare political pioneers who emerge at times of greatest need to help an economically and socially destroyed country.
Kooths stressed that the Argentine president is not a populist, but rather a popularizer of free market ideas. Milei argues for a fundamental change of direction without populist promises or the paternalistic attitude of an ever-expanding welfare state that ultimately manages growing poverty. Instead, Milei is giving his compatriots back their self-confidence, and this is precisely what gives them legitimate hope. In his speech, Milei presented himself as a differentiated and adaptive economist, and then recounted the evolution of his thought, starting from Keynesian economics and then arriving at the theories of the Austrian School. He explained that, like many in Argentina, he originally studied and taught Keynesian economics. In the search for convincing answers to pressing questions, he gradually developed his own thinking. Because he had an affinity for mathematical models, he initially felt comfortable in the world of Keynesian and New Keynesian macroeconomic equilibrium. But he soon realized that these models repeatedly provided incorrect results and raised unmet expectations. He then delved into the neoclassical microeconomic theory of decision making, market structures, and competition.
In Argentina, Milei transformed from economist to politician during the pandemic. His television appearances became popular, until the Left convinced broadcasters to stop giving him a platform. This led him to found a new party and campaign on the streets. In November of 2023, Milei was elected president of Argentina with 55% of the vote. Since then, he has initiated the largest fiscal adjustment in Argentina’s history, abolishing 13 ministries and drastically reducing public spending. He also founded the Ministry of Human Capital to unite the tasks of the dissolved ministries. Milei is a polarizing figure, with a high approval rating in South America. A recent poll showed that 55.7% of Argentines support his line, placing him as the most popular leader on the continent. His tough economic reforms have begun to show success, with inflation falling and a budget surplus achieved for five consecutive months. On the foreign policy front, Milei marked a clear turn towards the West, supporting the United States, Europe, Ukraine, and Israel. This turning point has been welcomed positively by the population, with 48% of Argentines supporting the new geopolitical orientation, despite the continent’s traditionally anti-American attitude.
Milei’s main objective remains the economic development of the country. His government has respected parliamentary rules, but faces resistance and protests from the opposition. The Argentine president is convinced that only rapid, shocking change can put Argentina back on the right path. He urged his audience in Hamburg to passionately defend their ideas of freedom, arguing that, despite initial resistance, they will prevail in the end.
