Updated July 5, 8:57 p.m.

Federico Sturzenegger was sworn in by President Javier Milei as the head of the newly-created Ministry of Deregulation and Transformation of the State in a brief ceremony on Friday afternoon.

Sturzenegger, who served as central bank head under former President Mauricio Macri from 2015 to 2018, assumed his new role amid market turbulence fueled by uncertainty over the country’s economic performance.

The decree creating the new ministry also lists its 27 functions. These will include developing projects related to “economic deregulation and state reform,” structural reforms aimed at creating private employment and “ending privileges,” and adapting the organization of state affairs in “accordance with the process of reducing public expenditure.” 

Sturzenegger has worked closely with Milei since he took office, despite not having an official role in the government. In January, he was named head of the “Transitory Unit for Economic Deregulation” in a government communiqué, but that organism was never officially created. He was one of the key architects of Milei’s flagship reform bill, known as the Ley Bases, which Congress recently approved. 

The economist also co-authored Milei’s massive presidential decree issued in December that deregulated the Argentine economy. The Senate voted to strike it down, but it remains in force unless it is also rejected by the Chamber of Deputies.

Both pieces of legislation were originally created for a potential Patricia Bullrich presidency. Bullrich, now Milei’s Security Minister, is a hardliner from the right-wing party PRO who lost the presidential elections. 

Milei has said 3,200 new reforms are to be expected under Sturzenegger’s stewardship. All eyes will be closely following the dynamic between his deregulation ministry and the economy ministry — partly because their functions could overlap, but also because Sturzenegger has been famously at odds with Economy Minister Luis Caputo since they served in Macri’s government.

Sturzenegger spoke with the press briefly after the ceremony. “Argentina is a bit overloaded with laws and regulations, and the president has tasked me to lift that weight off the productive sector,” he said.

During the swearing-in ceremony in Casa Rosada, the government notary said the time wrong, causing Milei to retort: “We are going to deregulate your watch.”

Reuters/Herald