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Pope Leo XIV challenges Argentina's austerity drive

The pontiff told leaders to prioritize people over economics, a stance that contrasts with President Milei's fiscal reforms and the country's ongoing social tensions.

By Giulia Donovan ·

Illustration for: Pope Leo XIV challenges Argentina's austerity drive
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Pope Leo XIV arrived in Buenos Aires on Sunday to deliver a direct message to Argentine leaders. He stated that the economy must serve the person, not the other way around. This comment landed in a political environment defined by sharp disagreements over public spending and social policy.

The visit marks the most politically sensitive stop on the pope's three-nation South American tour. President Javier Milei has defined his presidency around cutting government expenditure to control inflation. He has described social justice as a moral aberration and a form of theft in recent speeches. Milei's administration has framed these cuts as necessary reforms to fix the troubled economy and remove waste from federal bureaucracy.

Milei officials had attempted to downplay potential friction before the arrival. Human Capital Minister Sandra Pettovello told a Buenos Aires radio station that the pope was not coming to opine on local politics. In his welcome message, Milei expressed hope that the trip would strengthen faith and bring peace to Argentines.

Leo echoed the call for peace while urging a more moderate political tone. He noted that democracy relies on careful language and the ability to view political opponents as fellow citizens. He also defended public universities, which have faced funding cuts of roughly 40 percent since 2023. He argued that investing in education and research is essential for the country's youth.

The austerity measures have produced a rare fiscal surplus and lowered annual inflation from 200 percent to about 32 percent. However, real wages remain below levels from late 2023, and approximately 300,000 formal jobs have been lost. Retirees with an average monthly pension of $510 have protested outside Congress every Wednesday for more than two years. Milei has called complaints about families not making ends meet a great stupidity.

The Argentine bishops have been persistent critics of the Milei administration. An analysis by sociologist Sol Prieto found that 42 of 44 public policy documents published by the Episcopal Conference between January 2024 and September 2026 criticized the government. Archbishop Jorge García Cuerva warned the pope that he would find a wounded and divided Argentina.

Leo also addressed natural resources and artificial intelligence. He said natural resources should serve community well-being, a point that contrasts with Milei's push for oil, gas, and mining investments. The government has relaxed glacier protections and is courting tech companies to build data centers in Patagonia. Leo cautioned that rapid technological advances require careful consideration of their consequences and the responsibilities of those who decide how to use them.

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