More than two years after campaigning to “blow up” Argentina’s central bank, President Javier Milei has announced his “Fiscal Shackle” bill – a permanent rule aimed at preventing Argentina from approving or maintaining budgets with fiscal deficits that could have consequences for politicians.
On Thursday, in a speech recorded at the Casa Rosada and broadcast nationwide, Milei proposed an overhaul that would restore the Central Bank of Argentina’s sole mandate of preserving the currency’s value, stop direct and indirect financing of the Treasury, provinces, and municipalities, and expose officials who violate the rules to criminal charges. “It will be considered fraud and illicit association,” he explained.
Milei said this is the “most important set of structural reforms in the last 91 years,” taking the year of the Central Bank’s founding, 1935, as the starting point for that period. He argued that the central bank has functioned as “a tool for theft” and indicated that his reform proposal seeks “to put an end to the scam of counterfeiting money to finance high-level politics, whose most evident manifestation is the inflation rate.”
The plan would also strengthen independence of central bank officials, making them more difficult for future administrations to remove. Milei said the reforms were an effort to end decades of deficit monetization, the primary source of Argentina’s recurring inflation and currency crises.
Hellbound and Down 