The Chamber of Deputies of Argentina began this Monday (04/29/2024) the marathon debate of a package of reforms by President Javier Milei to deregulate the Argentine economy, in a project reduced compared to the original that failed in February 2024. It is expected that the session is extended until Tuesday, April 30.
If it obtains the “half sanction” or approval of the deputies, the Base Law must still go through a thorny path in the Senate, where the Government has only 7 of the 72 seats.
The proposal includes the declaration of the economic and energy emergency for one year, the delegation of powers from Parliament to the Executive (which would allow Milei to govern by decree), the reform of the State, labor reform, an incentive regime for large investments and changes in the pension law, in addition to establishing a dozen State companies subject to privatization.
The law contains about 230 articles, a third of those included in the ambitious reform that collapsed in February 2024 in Parliament, where the ruling party does not control either chamber.
Milei, who has not achieved the approval of a bill so far and had said that he will advance his government plan with or without the support of Congress, celebrated on Sunday, April 29, his “economic achievements” despite the setbacks. legislative.
“Politics has been trying to put things in the wheel all the time and, despite politics, we are achieving it and we are not going to change course,” the president, who usually denigrates traditional politicians, told the LN+ channel. which is referred to as “the caste.”
Among the speakers, the official deputy José Luis Espert defended the tax reform, which he defined as “the first brick of a more reasonable tax system that will allow, in time, to lower taxes to fight against poverty” that affects half of the population of 47 million inhabitants.
While the debate was going on, which began at noon this Monday, dozens of protesters repudiated the project in front of Congress within the framework of a rally called by unions and opposition parties.
The leftist deputy Myriam Bregman criticized the labor and pension chapter, as well as the granting of delegated powers.
“New tax haven”
The law “strongly harms the most unprotected sectors of the working class” and “is complemented by giving Milei concessions so that he can continue along the path of the decree doing absolutely whatever he wants,” he told AFP.
Representative Margarita Stolbizer, from the so-called dialogue opposition, also said on the floor that, although “a much more reasonable treatment” had been reached than the previous version, she maintained “doubts regarding a vocation for concentration of power.”
For his part, opposition deputy Ramiro Gutiérrez considered that the investment incentive regime represents “an invitation to all drug cartels to come to a new tax haven” and called for “voting against so that Argentina does not turned into a mafia hideout.
The ruling party has 38 deputies out of the 257 in the chamber. For approval it needs at least 129 votes in favor.
The Government assumes that it will obtain approval of the law “in general”, but, as happened in February, dissent could surface when a specific vote is required, in which it will be decided chapter by chapter.
The labor confederations called to mobilize on May 1, on Labor Day, against the labor reform and the adjustment applied by the Government, which has involved thousands of layoffs in the State in a context of inflation of almost 290% annually. They also called a national strike for May 9, the second since Milei took office in December.
On April 24, hundreds of thousands of people marched against the defunding of public universities.
Argentina has been plunged into an acute economic and social crisis for years. Milei promised to overcome it, but at the cost of great sacrifices. Although it has achieved a fiscal surplus, the country is now suffering from the collapse of consumption and industry.
The International Monetary Fund (IMF) estimated a 2.8% drop in the economy this year and projected annual inflation of 250%.
mg (afp, Clarin)
Recession and layoffs in Argentina
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