A general strike in Argentina on Wednesday is being seen as the first major challenge facing the country's new leader, President Javier Milei.

Thousands of people embarked on a 12-hour strike in the Argentine capital of Buenos Aires, protesting Milei's cost-cutting measures.

Protests countrywide

The strike organized by the largest umbrella union — the General Confederation of Labor (CGT) — has impacted various sectors, from banking through to transportation.

"People are angry... nobody can deny it," said CGT co-leader Hector Daer.

Protesters carried placards that read: "The homeland is not for sale" and "Eating is not a privilege."

The main rally in the capital took place outside Parliament, where lawmakers were discussing Milei's economic reform package, which some fear will leave them vulnerable to exploitation, and poorer.

Demonstrations have also been called for numerous other cities and towns, even abroad in Madrid, Paris and Brussels.

Why is the strike taking place?

Milei took office in December with a campaign in which he vowed to slash public spending and dollarize the economy.

Ten days after taking office, Milei announced sweeping reforms that lessened some worker protections, abolished a price ceiling on rent while raising price controls on certain consumer goods.

Milei's administration argues that the country has been lumbered with huge debts and the cuts are necessary following years of overspending.

But at least in the short term, his entry into the equation is yet to turn the numbers around. Year-on-year inflation reached 211% this month, up from 160% in November ahead of the elections.

The new administration tried to put a brave face on its first major challenge.

"There is no strike that stops us, there is no threat that intimidates us," Milei's security minister and former election rival Patricia Bullrich wrote on social media.

"It's mafia unionists, poverty managers, complicit judges and corrupt politicians — all defending their privileges — resisting the change that society chose democratically."

Milei was an economist and former TV pundit who managed a surprise election victory last year. With the country's poverty rate running at over 40% his administration must now try and stabilize the South American country's economy.

Argentina has defaulted on its debt nine times, and three times since the turn of the century.

kb/msh (Reuters, AFP)