Milei will have a year of reinforced power to demolish the Peronist economic model: “I don’t remember such an ambitious plan in Argentina”
“During Milei’s first 100 days, many believed that the President’s legislative plan, then known as the Omnibus Law, was a failure, and many doubted his ability to govern with just a single digit of his party’s elements in parliament . However, the Government took note of this and sent back a less aggressive plan, reducing it from more than 600 articles to just over 200, allowing the Argentine Congress to approve the Basic Laws and its fiscal package.†à This is how Beatriz GarcÃa Nice, researcher at the Wilson Center think tank’s Latin America program, describes the legislative victory of Javier Milei and his comprehensive economic review bills.
On Friday, Argentina’s lower house approved a package of ambitious economic reforms, which Javier Milei has championed for months. The new legislation includes the declaration of a situation of public emergency in administrative, economic, financial and energy matters for a period of one year, which gives the Government powers added.
But the leader who calls himself “libertarian†has had to endure six months of bruising battles and noisy protests that have raised questions about his ability to govern. The legislation that Milei has now managed to pass – with the support of a “dialogue opposition” and rejection by the Left Front and the Peronist movement Union for the Fatherland – is history, according to analysts. In addition to trying to achieve “zero deficit†and attracting foreign investment, with the reform package Argentina sets major incentives for foreign companies that invest more than 200 million dollars in the country, a plan to privatize some companies state-owned companies and a controversial expansion of presidential powers over economic policy.
“This victory is, without a doubt, positive for the country, and important decisions are being taken to dispel market skepticism – something that recent Peronist governments have never been able to get rid of -, but the situation the one for Argentina is terrible,†admits Beatriz GarcÃa Nice. “The Government’s main challenge will be to maintain popular support, while responding to critical issues to stabilize the economy and resume sustained economic growth, including reducing inflation , the lifting of capital controls and the resumption of economic activity. And the delegation of legislative powers to the executive branch is a concern.â€
