The newly elected Libertarian president warns that there is “no alternative to shock adjustment.”

Argentina’s new President Javier Milei has warned his country’s people to prepare for painful austerity measures to reverse decades of economic stagnation and decline.

Inauguration on Sunday after his upset election last monthMilei used his inaugural speech to prepare Argentines for the short-term emergency that he said was necessary to address the greatest crisis in the country’s history.

In a break from tradition, the 53-year-old economist delivered his speech to his supporters with his back to Parliament.

“There is no alternative to a shock adjustment,” Milei said after accepting the presidential baton and sash. “There is no money.”

Guests at the inauguration included Ukrainian President Volodymyr Zelensky, Hungary’s nationalist Prime Minister Viktor Orban, right-wing former Brazilian leader Jair Bolsonaro, Uruguay’s conservative leader Luis Lacalle Pou and Chile’s left-wing President Gabriel Boric.

Latin America’s third-largest economy, which has teetered between crises for decades, is struggling with annual inflation of over 140 percent and a poverty rate of 40 percent.

The country owes the International Monetary Fund $45 billion.

Milei, known for his far-right libertarian views, has promised a series of radical measures to overhaul the economy, including spending cuts worth 5 percent of the economy and switching the Argentine peso to the U.S. dollar.

Milei, who describes himself as an “anarcho-capitalist,” reiterated on Sunday that the state will bear the burden of putting the country’s finances in order.

“We know that the situation will deteriorate in the short term, but we will soon see the fruits of our efforts as we have laid the foundation for solid and sustainable growth,” he said.

In one of his first official acts, Milei announced on social media that he had signed a decree that would halve the number of ministries from 18 to nine.

Milei, whose aggressive style has drawn comparisons to former US President Donald Trump, rose to fame for his diatribes against the “thieving” political class and evocations of Argentina’s “golden age” of the early 20th century.

His anti-establishment message struck a chord with Argentines, particularly young men, after successive governments engineered the country’s decline from one of the richest economies to a cautionary tale of economic mismanagement.

Milei clearly prevailed in a runoff election on November 19th against former economy minister Sergio Massa from the center-left Peronist coalition.

Still, Milei must negotiate with rivals to govern effectively as his coalition bloc does not have a majority in parliament.

There are signs that the political outsider may be softening his more radical positions in office.

His cabinet has skewed mainstream conservatives in favor of ideological libertarians, while talk of central bank closures and dollarization has evaporated in recent weeks.