9.4
7.466 Reviews
English
EN
This article has been automatically translated from Dutch. Click here to see the orginal article including all links to sources.
Is the Argentine chainsaw coming to London? It now seems only a matter of time before politicians in the stagnating West start embracing the policies of Javier Milei as a serious way forward. This week, his libertarian philosophy firmly entered the British political debate, with the Conservative camp appearing to draw inspiration from the Argentine example. Meanwhile, Serbia is taking the lead in a growing trend: it has become the first Eastern European country to repatriate all of its gold reserves.
Argentine President Javier Milei’s radical “chainsaw” policy seems to be bearing fruit, as we recently discussed in our monthly update. A good example is bound to be followed — it’s only a matter of time. Trump already took inspiration from Milei with his DOGE coin proposal, and now Milei’s success appears to be spreading across the Atlantic.
This week, renowned British historian Niall Ferguson published an article titled “Milei’s Man-made Miracle”. At the same time, Kemi Badenoch, leader of the British Conservatives, called herself “the British Javier Milei.”
Javier Milei at a conference in February 2025 (Source: Gage Skidmore)
In an interview with the Financial Times, Badenoch stated that British voters are longing for an Argentine-style austerity model. She sees Milei as the economic and political example to revive both the United Kingdom and her own party. “Milei is the template,” she told the British paper.
The Conservatives are currently in opposition after a historic electoral defeat. Polls show the party in dire straits, losing ground to Reform UK, the party of Nigel Farage.
The current government, led by Labour’s Keir Starmer, is struggling to rein in public spending and is preparing a new round of tax hikes. The rise in interest rates on government debt is putting further pressure on the budget. Of course, many of today’s problems have their roots in previous Conservative administrations, but Badenoch is now trying to reposition her party as the party of small government and lower taxes.
Back in April, we wrote about the thousands of millionaires who had recently fled London due to a new tax reform. Badenoch now warns that high taxes risk driving all wealth out of the country — “but I’m even more worried that young people are leaving too,” she added.
UK 10-year gilt yields (Source: Daniel Lacalle)
Badenoch isn’t the only one in the UK who sees Milei’s policy as a way out of persistent stagnation. According to the influential Niall Ferguson, Milei is delivering “a man-made miracle that should gladden the heart of every classical economist and quicken the pulse of all political libertarians.”
Ferguson writes that when Milei became president in December 2023, the Argentine economy was considered a lost cause. According to the IMF, GDP shrank by 1.6% that year, and real GDP per capita was lower than in 2007. Due to reckless spending and money printing by the previous government, monthly inflation had reached 54% by that December.
In just 20 months, Milei slashed the budget deficit from 5% of GDP to zero and eliminated 10 out of 18 ministries. He abolished quotas, reformed import policy, taxation, and the labor market, and deregulated housing, aviation, and road transport.
Ferguson sees undeniable proof that “the most radical libertarian government the world has ever seen” is succeeding: “Monthly inflation has dropped from 13% to 2%. The economy is growing at an annualized rate of 7%. Argentine stocks and bonds are now among the world’s best-performing investments. After a brief spike, the poverty rate fell from 42% to 31%.”
According to Ferguson, it's not just Latin America that needs a libertarian success story — the entire world is craving one. Now that Milei’s story has crossed the Atlantic, will it make it across the North Sea as well? We’ll keep following it for you.
The National Bank of Serbia plans to bring back all of the country’s gold reserves to domestic storage. Last month, we wrote about growing pressure in Italy and Germany to repatriate their gold, but it is Serbia that has now become the first country to hold no gold in foreign storage — such as in Switzerland, the United Kingdom, or the United States. Serbia’s gold reserves are worth approximately $6 billion.
Where do countries store their gold? (Source: Bloomberg)
Between 2019 and 2024, Serbia purchased at least 36 tonnes of gold, bringing its total reserves to over 50 tonnes. Around five tonnes are still held in Switzerland but will soon be moved to Belgrade, where the remainder of the reserves is already stored. Serbia’s central bank says the move is intended to enhance the availability and security of its reserves during times of crisis and uncertainty.
Serbia is now the first Eastern European country to store its entire gold stock domestically. While storing gold in international financial hubs makes it easier to trade or lend, the Serbian central bank considers monetary autonomy more important.
By contrast, the Dutch gold reserves are still mostly stored abroad — in Ottawa, London, and New York. Only 31% is stored on Dutch soil, in Zeist. Is it time to bring that back as well?
