The UK's Minister of Business and Trade and a leading figure in the Conservative Party Kemi Badenoch has publicly expressed his admiration for the austerity and reform policies implemented by Argentine President Javier Milei . In a speech to investors and academics, Badenoch not only applauded Milei's economic program but also compared him to former British Prime Minister Margaret Thatcher , a figure whom Javier Milei himself has cited on several occasions as an inspiration, along with Ronald Reagan and Winston Churchill.

Austerity and deregulation à la 'Thatcher'

Badenoch praised Argentina's austerity program , which, according to the libertarian administration, has drastically reduced inflation from a peak of nearly 300% to around 31% through cuts in retirement benefits and pensions, education, healthcare, social assistance, transportation and fuel subsidies, and extensive deregulation. Thus, for the conservative leader, Milei has managed to push his reforms forward at a faster pace than Thatcher.

“This vision was the hallmark of Reagan and Thatcher: people who did difficult things, knowing they might be unpopular, but also knowing they could win the argument,” Badenoch said. “They brought people along because what they were doing worked.” This endorsement highlights the ideological affinity between a faction of British conservatism and the anarcho-capitalist Milei , whose chainsaw (a symbol of his plan to downsize the state) has even been brandished by Conservative cabinet members, such as Andrew Griffith, as a sign of inspiration.

"Competition" over the Malvina Islands

The information published by the London-based media outlet CityAM also highlighted Badenoch's peculiar stance regarding Milei's approach to the sovereignty of the Malvina Islands . While the minister was clear in her unwavering support for British sovereignty over the islands, she was "fascinated" by the Argentine president's proposal to have the islanders "vote with their feet" when they wish to become Argentine citizens because of the power and freedom he seeks for the nation.

“I find it fascinating. I love competition. I believe competition is what will make all our global economies grow,” Badenoch replied, welcoming the challenge posed by Milei . The Argentine president had stated in April that his goal is to make Argentina the “freest country in the world,” so powerful that the islanders “would prefer to be Argentine” without needing persuasion. This position, while firm in its defense of British sovereignty, contrasts with the historically more confrontational tone and emphasizes a competitive vision in the economic sphere and in terms of quality of life.

The endorsement of Badenoch, a leader with clear ambitions in the Conservative Party, translates into a significant international endorsement for the Argentine president, who is an avowed admirer of the 'Iron Lady' , reinforcing the parallel between his shock policies and the reforms promoted by Thatcher in the 1980s.

Thatcher vs. Milei: Key Economic Reforms

The comparison drawn by the Conservative Party leader between Javier Milei and Margaret Thatcher focuses on their radical approach to reforming the state and the economy . And without enumerating the social costs, it could well be argued that Milei is implementing "shock" policies with objectives similar to those applied by Thatcher: reducing the power of the state , controlling inflation , and promoting the free market .

Margaret Thatcher (United Kingdom, 1979-1990)

Thatcher's reforms , known as "Thatcherism," sought to reverse the UK's post-war economic decline, characterized by high inflation, powerful trade unions, and inefficient state-owned enterprises.

Renovation Area

Key Description

Main Objective

Privatization

Sale of large state-owned companies (telecommunications, gas, electricity, airlines, steel).

Reduce public spending, increase efficiency, and promote popular share ownership .

Monetary Policy

Focus on controlling the money supply ($M_3$) to reduce chronic inflation .

Stabilize prices and create a predictable investment environment.

Trade Union Law

Restricting the power of trade unions by limiting strikes and mass picketing.

Breaking union control over industry to increase productivity and reduce labor bargaining power.

Deregulation

Elimination of capital controls and liberalization of financial markets ( "Big Bang" of 1986).

Boost competition and turn London into a global financial center.

Public Spending

Cuts in public spending (although not as dramatic as perceived) to reduce state dependence.

Promote self-sufficiency and reduce the tax burden.

Thatcher's impact was transformative , changing the UK's economic and social structure towards a free market model with low state intervention, but it also led to the destruction of thousands of jobs and the closure of industries that had been key to British economic development .

Javier Milei (Argentina, 2023-Present)

Milei's reforms focus on extreme fiscal adjustment and massive deregulation to combat hyperinflation and Argentina's chronic fiscal deficit.

Renovation Area

Key Description

Main Objective

Fiscal Adjustment ("Chainsaw")

Drastic cuts in public spending (subsidies, public works, transfers to provinces, reduction of state personnel).

Eliminate the fiscal deficit to end the monetary issuance that causes inflation.

Massive Deregulation

Decree of Necessity and Urgency (DNU) that repeals or modifies hundreds of economic laws (rentals, tourism, foreign trade).

To free market forces from the "regulatory web" that, in their view, hinders growth.

Monetary Reform

Strong monetary restrictions to curb money printing and the long-term goal of dollarizing and/or eliminating the Central Bank (BCRA).

Control inflation and establish a hard and stable currency.

Privatization (In Progress)

Declaration of "subject to privatization" of numerous public companies (e.g., Aerolíneas Argentinas, YPF).

Increase efficiency and reduce the financial burden of loss-making companies on the State.

Labor Law

Modification of labor laws through the DNU to reduce compensation and make the labor market more flexible.

Lower labor costs and promote formal employment in the private sector.

Connection Points

Kemi Badenoch's admiration for Margaret Thatcher (and Milei's own) is based on these ideological parallels :

1.     Fight against the Big State: Both see the State as an obstacle to prosperity and seek to drastically reduce its size and interference.

2.     Combating Inflation: Both prioritized controlling inflation over other considerations (such as the level of employment in the short term).

3.     Faith in the Free Market: Deregulation and privatization are the pillars for unleashing economic potential through competition.