Argentina recently announced the closure of Trenes Argentinos Capital Humano (DECAHF), a state-run railway company, resulting in 1,400 job losses. This move is part of President Javier Milei’s cost-cutting measures to reduce public spending, aiming to save 42 billion pesos annually. While 1,388 workers lost their jobs outright, 423 employees will be transferred to Ferrocarriles Argentinos Sociedad del Estado (FASE) to minimize the impact on railway operations.
The decision to shut down DECAHF was made due to its bloated structure duplicating tasks, with accusations of spending $180 million on questionable projects by the previous administration. Since taking office, Milei’s administration has implemented austerity measures, leading to over 33,000 state employees losing their jobs in ten months. Argentina’s economic situation remains challenging, with inflation at 236.7% annually as of August 2024.
The International Monetary Fund has revised its economic forecast for Argentina, projecting a 2.8% contraction in 2024. The debate continues on the government’s approach to fiscal reform, with supporters seeing it as necessary for long-standing economic issues and critics highlighting disproportionate impacts on workers and essential services.