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Argentina freezes salaries, cuts jobs in austerity push

January 30, 2018 00:00:00


BUENOS AIRES, Jan 29 (Reuters): Executive branch government employees in Argentina will get no pay raises this year and one out of every four "political positions" appointed by ministers will be cut, President Mauricio Macri said on Monday, deepening his austerity drive.

The clampdown on political positions, including advisers appointed by government ministers, is viewed as an attack on a patronage system that has been in place for decades.

The firings, expected to save $77 million a year, are symbolic of Macri's drive to regain market confidence.

"Austerity has to be part of politics," Macri said in a televised address.

He spent the first two years of his administration dismantling the trade and currency controls set up by his predecessor, Cristina Fernandez, who had expanded the role of government in the economy.

He was elected in 2015 with a mandate to free the markets and improve Argentina's business climate.


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