The Executive is concerned about showing financial results before the 2025 legislative elections and will seek to install a management speech after the vote on the modifications to the Bases Law in Deputies.
Javier Milei supports the plan dollarization and is betting on three axes for economic reactivation prior to the 2025 elections. The president seeks to accelerate the deregulation of the economy and plans to run a currency competition in the fourth year of government.
“Milei’s idea is not to emit more, to reactivate the economy due to low inflation and that people start investing with the dollars they have under the mattress. An example would be for a baker to buy an oven directly with dollars if he wants to expand production,” said an official.
The Government maintained that “free currency competition is in force as the final phase for the process that began in December with the cleanup of the Central Bank’s balance sheet” in the management report it presented to the Senate.
The Executive’s small table is also concerned with showing economic results before the legislative elections of 2025. They will seek to install a management speech after the vote on the modifications to the Base Law and the fiscal package in Deputies – in addition to the validity of DNU 70/2023 – and the realization of the May Pact.
“We understand that next year’s elections are going to be defined by the economy and we are going to try to show results in the medium term. We believe that a V-shaped reactivation is beginning to appear and that it will accelerate with the sanction of Bases“said someone close to the president.
That is why Milei is betting on a strong investment income through the Large Investment Incentive Regime (RIGI), which offers export and import duties and a reduction in Income Tax from 35% to 25%. In Balcarce 50 there is talk of a possible execution in lithium of businessman Elon Musk.
The Executive also sets its sights on the privatization of public companies that were included in the Base Law. These are Energía Argentina, Intercargo, Argentine Water and Sanitation, Belgrano Cargas, Sociedad Operadora Ferroviaria and Corredores Viales. They will also insist this week with the sanction of Aerolíneas Argentinas, the Correo and Radio and Televisión Argentina.
The small table is supported by the flow of income that would mean the sales of the companies, which fell under the orbit of the Minister of Economy, Luis Caputo. The former controller of Télam Diego Chaher will preside over the Business Execution Unit that will be in charge of the privatization process.
The third point that the Government looks at is the reform of the State and deregulation of the economy that Milei wants the former president of the Central Bank Federico Sturzenegger to carry out. She has a pending meeting with the president to define the conditions of his entry into the cabinet, which was postponed due to differences of opinion.
“What we want is for Sturzenegger to reform the State. “It is not the idea to create the most powerful ministry in the Government,” an official told this medium.
In the Casa Rosada they hope that the definition will be given upon the return of the president’s trip to Europe. The version that gained strength in Balcarce 50 is that They will offer you a Secretary of State linked to the Presidency with the areas of State Simplification and Transformation of the State and Public Function.
Another of the axes considered by the Executive is the reactivation of public works by the Nation. The Government will finish national routes, sewers, bridges and prisons with a degree of progress greater than 40%. They will also hand over projects to the provinces, such as the repaving of internal routes.
