Argentine president achieves political victory with parliamentary approval of key reforms

The Government of Argentine President Javier Milei achieved a political victory this Friday with the approval, after six months of a difficult parliamentary process, of an ambitious package of economic reforms. The initiatives were approved and became law in the early hours of today by the Chamber of Deputies, with 134 votes in favor, 118 against and three abstentions.

In a statement, President Milei’s office welcomed the approval of the law on Bases and Starting Points for the Freedom of Argentines, better known as the “omnibus law” or “basic law”, and the tax reform as well. promoted by the Government, projects that had been sent to parliament on December 27th, shortly after Milei’s presidential inauguration.

“With 38 deputies, seven senators and the support of a sector of political leadership, and despite the obstructions of ‘Kirchnerism’ (referring to former presidents Néstor Kirchner and Cristina Kirchner) and their usual accomplices, who delayed the project for months, the national government managed to approve the first law on the path to the free and prosperous country that Argentines chose last November 19th”, said the executive in the statement.

The ultra-liberal party in power, A Liberdade Avança, a minority in parliament, counted on the support of the so-called “dialogue opposition” to obtain the definitive approval of the bills, which were rejected by the Left Front and the Peronist movement Union for the Fatherland.

The “basic law” constitutes, together with the fiscal shock plan, the core of Milei’s government program. The new legislation declares a situation of public emergency in administrative, economic, financial and energy matters for a period of one year, granting the executive delegated powers in these matters.

The law provides for State reform, allows the privatization of some public companies, involves changes to labor and pension legislation and includes incentives for the energy and hydrocarbons sector and for large investments .

Parliament also approved a fiscal package that, among other aspects, includes money laundering and a tax and customs moratorium, the most controversial point of which concerns the tax on the wages of workers with average incomes and high, since, with the new law, this will be charged to more people.

The approval of this new legislation takes place in a context of severe economic adjustment, with inflation slowing down, but still very high (276.4% in May), of increasing unemployment and poverty and a strong contraction of the Gross Domestic Product (GDP), with 5.1% less in the first quarter of this year.

In its statement, the Government declared that “this law does not resolve the catastrophic situation inherited, but represents a significant step in the mission to restore a reasonable regulatory framework to begin retracing the path taken in the last 100 years”.

Milei also reiterated his appeal to governors, former presidents, leaders of the main political parties and deputies to sign on July 9th the so-called “May Pact”, with ten “basic and fundamental policies to restore the greatness of the nation §tion”.