Javier Milei He spent five months at the top of power without laws approved in the Congresswith the block of deputies fractured and with the league of Governors divided in the Senate against the Basic law and the fiscal package. Two initiatives that the President demanded be approved by the May Pact In cordoba.
The difficult political panorama facing the Casa Rosada extends to the economic level. Inflation remained at levels similar to management of Alberto Fernández and it doesn’t give in. The deterioration of the economy and the purchasing power of families forced the postponement of the high electricity and gas rates. Also Freedom Advances had to stop in court the unlimited increase in prepaid payments that the same government had authorized. The fictitious surplus, achieved by stopping payments to energy suppliers and adjusting the public sector, retirees, health and universities, will disappear in the coming months.
The league of governors, pointed out by Javier Milei as an almost criminal group that spends public funds without control, will find the President in full retreat on May 25 in Córdoba. The IMF also demands Luis “Toto” Caputo to pay the debt with the energy generators after offering a bond in dollars to settle those unpaid amounts. Without external financing, the Minister of Economy begins to falter in his position in a silent war with the chief of staff, Nicolas Posse, who destroyed the operational capacity of Sandra Pettovello’s Human Capital area by stepping on funds for social assistance. Furthermore, she will have her first test before the Senate this Wednesday, where she will have to make a management assessment.
Javier Milei’s cabinet creaks
The advance of posse on the Ministries, just as happened on the portfolio of Infrastructure who was driving Guillermo Ferraro, generates tensions within the cabinet. Posse does not speak but controls the state firms to be privatized in the midst of grotesque mismanagement of each of the ministries, where an official resigns every six days and The lack of management scares even the PRO of Mauricio Macri already openly confronted with Posse.
To the Caputo-Posse and Posse-Pettovello tensionit adds to having left Guillermo Francos without wallet during the negotiation process of the Basic law with the governors. Only last week, the Minister of the Interior was able to begin offering public works in the provinces. The crisis that Posse is suffering was graphically captured last week when Karina Milei He commanded the cabinet meeting with the coordinating minister and then directly supplanted him in the meeting with the deputies of LLA and the PRO to analyze the imminent return of the Base Law to the Lower House.
The Posse position is coveted by Patricia Bullrich, the only hyperactive minister in Javier Milei’s government, who functions almost as a spokesperson for the management. The rest of the ministers are almost not shown. The President follows the aspirations of the former presidential candidate of Together for Change carefully. With Mauricio Macri almost out of focus, a greater centrality of Bullrich in the cabinet would help the Casa Rosada to finish assimilate the residual PRO without the need to go through the toll of Macri, who claims positions in the cabinet.
This week, the Government will be forced to make changes to the Large Investment Incentive Regime (RIGI). In addition to the 30-year period for the exploitation of natural resources, the governors reject that local suppliers are placed at a disadvantage compared to imported products that would not pay tariffs, while national suppliers must do so. The governor of La Rioja, Ricardo Quintelawarned about the consequences of the approval of the Base Law in the Senate and considered that the RIGI is “the delivery of the homeland.”
The problem of the Law bases
“With the Bases Law, a structural problem will be generated that is very difficult to recompose,” said Quintela, while criticizing the investment promotion regime that involves modifications in tax, customs and exchange statutes. “The RIGI is the delivery of the country. All the benefits are given to the big people without contributing anything to the country and ours demand everything, withholdings, country tax for exporting and importing,” warned the provincial leader.
Quintela also said that “there will be no ruling before the May Pact” and reiterated his rejection of the Government’s proposal: “We are not going to be present and it seems to me that several more governors are not going to be there.” Meanwhile, the Rioja governor pointed out against the Tucumán president, Osvaldo Jaldo, who had criticized the general strike of the CGT, considering that the unionists ordered a measure of force to “stay asleep.” “What happened to Jaldo seems inexplicable and ununderstandable to me,” said Quintela.
From Freedom Advances, Senator Francisco Paoltroni was confident that the Base Law “It’s going to come out, with some small changes in Profits,” although he complained that the ruling party will achieve legislative victory by “waiting, very patiently, swallowing saliva.” The man from Formosa pointed out against the opposition and stated that the libertarian initiative “is so delayed because there is a sector of politics that is betting on failure, as they have always bet on the failure of Argentines.” “They have always used the machinery to prevent. They are impoverishers, they are infamous traitors to the Homeland”launched the official leader.
And he added: “In five months, politics has not given the President a single tool.” Paoltroni He pointed out that the RIGI is “ultra-necessary” because Argentina “needs to develop the other sectors of the Economy, because it is hyperdependent on the agricultural sector.” On the other hand, regarding the rejection of the Patagonians to the reestablishment of the fourth category of the Income Tax, the senator from La Libertad Avanza expressed: “That is adjustable. If one more floor is needed, you agree. It is talkable.” .
Travel before the May Pact
Before traveling the May 25 to Córdobawith or without sanction of the Base Law Two and the fiscal package, it is expected that the head of state flies to Madrid to participate next Saturday there in Spain at a summit of the right-wing Vox party, in the midst of the tension that the libertarian leader maintains with the center-left government of Pedro Sanchez due to ideological differences and which recently included a strong confrontation with a minister from that country, Oscar Puente, who suggested that Milei expressed himself in public under the effects of “substances”.
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