Javier Milei, the newly elected president of Argentina, has received a boost in his push to deregulate the country's energy industry. Italian energy giant Enel SpA has announced the suspension of the sale of its subsidiary power distributor Edesur in Argentina, citing President Milei's commitment to deregulation as a key factor [f3f7ddbe]. Enel officials, including CEO Flavio Cattaneo, met with Cabinet Chief Nicolás Posse and Economy Minister Luis Caputo in Buenos Aires, where they expressed support for Milei's shock therapy economic plan and his efforts to remove subsidies and price controls [f3f7ddbe].
Enel's decision to suspend the sale of Edesur marks a significant shift in strategy for the multinational company, making it the first major multinational to align its plans in Argentina with Milei's pro-market approach [f3f7ddbe]. This move comes after Milei's decree to deregulate aspects of the country's energy sector was overturned by Argentina's Senate [b93755b9].
Enel had already sold two subsidiaries before deciding to hold off on selling Edesur, demonstrating its confidence in Milei's commitment to deregulation and economic reform. Milei's plan includes scrapping generous subsidies and price controls in order to attract investment and stimulate economic growth [f3f7ddbe].
The suspension of the sale of Edesur by Enel is seen as a vote of confidence in Milei's economic agenda, particularly in the energy industry. It signals support for his efforts to create a more competitive and market-oriented energy sector in Argentina [f3f7ddbe].
In addition to Enel's decision, Milei's deregulation plan has faced resistance in the Senate and from environmentalists who oppose the rollback of environmental regulations. Despite these challenges, Milei remains committed to his reform agenda and will continue to push for deregulation and economic reform in Argentina [b93755b9] [e9119161].