In Buenos Aires on January 29, Reuters reported that Federico Sturzenegger, Argentina's deregulation chief, plans to deepen the cuts in various industries this year, following a strong push against the public sector and bureaucracy.
Heading the Ministry of Deregulation and State Transformation, Sturzenegger, who is seen as a possible influence for Elon Musk's efficiency initiatives, emphasized the need for intense spending reductions to achieve fiscal balance. Referring to President Javier Milei's approach as a "chainsaw," symbolizing drastic state cutbacks, Sturzenegger highlighted the aim to reduce state intervention.
Sturzenegger's agenda has garnered interest from investors, as Milei's administration successfully improved market sentiment by implementing tough austerity measures and boosting reserves. Promising further deregulation targeting industries with artificially inflated prices due to lack of competition, Sturzenegger mentioned plans to lift restrictions on car imports and promote electric vehicles and charging infrastructure.
Recognized as an experimental ground for free-market policies, Argentina's strategies have attracted global attention, including from Musk, Trump's administration, and Italy's Prime Minister Giorgia Meloni. Sturzenegger, invited by the International Monetary Fund to advise on deregulation, highlighted the country's debt situation and ongoing talks for a new loan agreement.
Sturzenegger revealed that Milei's discussions with Musk before the U.S. election likely influenced Musk's current focus on government efficiency. Reflecting on Milei’s interaction with Musk and his attendance at Trump's inauguration, Sturzenegger suggested a potential impact on Musk's policy direction.