Milei eliminates state agencies in Argentina before their special powers expire

The government of Argentine President Javier Milei announced this Monday the dissolution of the agencies in charge of regulating roads and the restructuring of seven state institutes, before their powers delegated by Congress expire on Tuesday.

Since taking office in December 2023, the ultra-liberal president has promoted a policy of public spending cuts, which has involved the elimination of state agencies and subsidies, the suspension of public works, and the dismissal of more than 50,000 public employees, among other measures.

Through a decree to be published Tuesday in the Official Gazette, the president "ordered the permanent closure of the National Highway Administration (...) and also of the National Transit and Road Safety Commission and the National Road Safety Agency," said his spokesman Manuel Adorni.

The National Road Authority's objective was the supervision, maintenance, and construction of roads and highways.

Adorni, who did not specify whether there will be layoffs in the area, said that in exchange, the "Agency for the Control of Concessions and Public Transportation Services" will be created to oversee road concessions and announced that the government "will open bidding for 9,120 kilometers of roads."

The measures were taken before the expiration of the special powers granted to Milei by Congress for one year to exercise some of the functions of the Legislative Branch.

Adorni emphasized that "the 65 delegated decrees enacted last year represent savings of $2 billion annually in expenses," for example, through the dissolution or restructuring of dozens of state entities in the areas of health, science, and culture, among others.

State Deregulation Minister Federico Sturzenegger reported that the Executive Branch will not request an extension of these powers.

The Argentine government also announced in a statement the restructuring of seven state agencies it described as "inefficient," including the National Institute of Industrial Technology (INTI) and the National Institute of Agricultural Technology (INTA), which will cease to be autonomous and will be under the Ministry of Economy.

Following rumors of the announcement, workers from both organizations held a protest on Monday morning, which culminated in clashes with the police.

"The government declared war on us state employees and turned the state into a huge battlefield," wrote Rodolfo Aguiar, general secretary of the state employees' union, in X, warning that the measures would lead to hundreds of layoffs.

Since coming to power, Milei's government has implemented a public spending reduction program of 4.7% of GDP, halving the inflation rate, which fell from 211% in 2023 to 118% in 2024.