Base Law | Milei trusts in the approval of the Senate: “The problem lies with the provinces”

Buenos Aires Correspondent

President Javier Milei trust that the Senate Chamber will approve the Base Law and the tax relief package because they are tools that, according to the president, will favor provincial financespressured by the drop in activity and the elimination of transfers from the National Treasury.

The head of state also considered that governors whose representatives in the Upper House do not support both initiatives They should not be part of the May Pact which will be held on the 25th of this month in Córdoba.

“I don’t think that (Axel) Kicillof (governor of Buenos Aires) wants to be because he loves the fiscal deficit”, Milei launched as a way of referencing his position.

Regarding possible obstacles that could appear in the negotiations with the members of the Upper House, the president stated that “if they block us on the fiscal part, we have no problems, the provinces have the problem”.

In journalistic statements, Milei assessed that “the Senators have to respond to the interests of the provinces and therefore it would be logical for them to support.” Along the same lines, he emphasized that “The provinces need the May Pact more than the Nation.”” because the Nation reached a fiscal surplus.

On Tuesday afternoon, the Chamber of Deputies gave half-sanction to the Base Law and the fiscal package, which, among other points, aims to generate resources for the National and provincial Treasurys.

According to calculations by the National Government itself, 60% of the additional income would be shared with the provinces.

“Profits are a tax that the provinces need, but there are taxes that I’m not even going to participate in, such as the Debit tax (check) or the PAIS tax because they have to be eliminated”, emphasized the head of state.

The president insisted that for this process to begin, the growth of the economy and a reduction in public spending to a range of 25% of GDP is necessary.

Regarding possible resistance on the part of politicians to the proposed changes, Milei was specific: “If they don’t want to, I will introduce all the reforms on December 11, 2025,” pointing out in an elliptical form. a resounding victory in the midterm elections next year that gives it the necessary legislative force.

When asked about the final result of both laws, the president admitted that they do not have the volume he intended, but that it was the result of the negotiations that were carried out.

Have we reached the goal? Yeah. Are these all the steps we wanted to take? No,” she emphasized. However, he highlighted that “what came out is five times more than (Carlos) Menem’s reform of the State.”

“To that you have to add the DNU (70/2023) and then in four months we made 700 structural reforms,” stressed the president.

Bases Law: Francos begins negotiations in the Senate

The person in charge of finishing sealing the agreement with the governors will be the Minister of the Interior, Guillermo Francos, who was described by Milei within the group of “doves” of the national Cabinet, along with Victoria Villarruel, Sandra Pettovello and Martín Menem. Instead, he and Patricia Bullrich call themselves the “hawks.”

Francos was also optimistic about the upcoming negotiations and achieve the votes necessary to pass the laws.

“In the Senate we already have a long way to go. We have spoken with senators and with several governors and now we will do it again“said the Minister of the Interior, who seems to be feeling a terrain that is still rough, but more leveled with respect to the frustrated January negotiation.

There is a much more favorable economic and political context“, Francos assessed ahead of the conversations, although he admitted that “this does not imply that all senators are willing to approve the law.”

The minister also noted that in addition to the new resources for Profits, The provinces will benefit from the tax collection generated by money laundering and from the funds recovered from those trusts that are eliminated.

In the give and take of concessions and benefits Franco put a card on the value table such as the investment incentive regime, which in his opinion “It is of enormous importance for all the Andean provinces that have interests in gas and oil.”.

Regarding the inclusion of the tobacco tax, he accepted that it had been included during the debate, but at the same time he admitted that in the event that it undergoes modifications in the Senate, or is eliminated, the law will return to Deputies, which may open another focus of conflict and of delay in application of the rules.

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