The Government of Javier Milei is heading to restart its management

Friday 6/21/2024

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Last update 7:31

The La Libertad Avanza government understands that it is going through a crucial stage for what lies ahead in the next three and a half years of its mandate. The change of course in terms of negotiations with the governors and their legislators is a symptom of this, as are the first transformations in the power structure with Guillermo Francos positioned as bearer of the wallet that Luis Caputo manages from the Treasury Palace. -with the approval of Javier Milei himself- who is in charge of sustaining the speech directed at his own troops, that which in the libertarian space they call “the 30 percent.” One of the main presidential collaborators maintains in this regard that his boss “advocates delegating because it is not his task to be in everything related to management, yes, he always defines,” he warned elusively.

After another patriotic act on Flag Day, which allowed him to briefly visit another province such as Santa Fe – where he called to sign the long May Pact on July 9 in Tucumán – the President met at Balcarce 50 with the governors Gustavo Sáenz (Salta), Raúl Jalil (Catamarca), Carlos Sadir (Jujuy) and the governor from Tucumán, Osvaldo Jaldo. All in order to achieve the viability of the Base Law and the fiscal package in Parliament. After the conclave and without a break in continuity, the head of the Executive Branch left with his sister Karina for another European tour in which the presentation of recognitions by transoceanic liberals, dissertations, and obligatory meetings with officials from Spain, Germany and the Republic are mixed. Czech. He comes back next Tuesday.

At Casa Rosada it was noted that it will be when he returns from his tour of the old continent that Milei will define the role that advisor Federico Sturzenegger will have in the national Cabinet. Libertarian officials target journalism, accusing it of trying to impose an assumption on the agenda: “If ‘Sturze’ comes in, ‘Toto’ comes out, and that’s not the case!” said a senior collaborator of the General Secretariat. What the LLA leadership tries to ignore is a fact that cannot be ignored; It is about the old differences and quarrels between both former exchanges.

In the so-called red circle they do not forget 28D. That April Fool’s Day in 2017, when in an abrupt press conference led by Mauricio Macri’s former Chief of Staff, Marcos Peña, together with the then head of the Economy, Nicolás Dujovne, Sturzenegger (in charge of the BCRA at the time) and Caputo himself (then Minister of Finance) announced the change in inflation goals for 2018, which went from 10% – average – to 15% annually. That year the CPI reached 25% and what the markets read was an advance from the head of the ministers and the rest of the portfolios regarding the independence of the Central Bank.

Four months later, Macri’s economic program began to collapse under the effects of the drought that prevented the entry of foreign currency and the impossibility of access to international credit. When the blows fell on the dollar – in the opinion of many financial analysts – the scapegoat was “Sturze”, who left office after also signing the agreement with the IMF for US$ 50,000 million. The Central was left in the hands of “Toto” and the differences seemed irreconcilable since then. Of course, the potential culprit in everything was the outgoing incumbent for having delayed the value of the US currency, among other things.

Due to this incident, which due to the permanent immediacy of information, the majority of Argentines have overlooked, the head of state himself came out to calm the waters and guarantee that the two can coexist in the national Cabinet, ratifying the economic boss. in his position. “Stop resigning people,” joked a minister as he passed through the door of the accredited room at the PEN headquarters. “They have already resigned from (Sandra) Pettovello, (Mario) Russo – Minister of Health – and (Diana) Mondino, stop a little!”, the libertarian leader sarcastically requested, trying to tone down the issue by arguing that “the arrival by Sturzenegger is going to be a change of scenery. The same source granted the status of “Chancellor of Technology” to the president of the President’s Council of Economic Advisors, Demian Reidel, another of the names, which according to the government small table, is used to operate on Luis Andrés Caputo.

In addition to the deregulation and modernization plans of the State promoted by Sturzenegger – and which should not clash with the management of the Minister of Finance – those around the Milei brothers point to the economic program by stating that “if this actually turns out well, that is , the economy begins to grow and we do not emit more, we are going to dollarize ourselves”, and they added that “if you grow, and you have a bakery, and more and more people come to buy from you, you are forced to expand your business.” In this framework, they conclude that there is “strong support from the World Bank, obviously when the new agreement is signed with the Fund that will be directed more strongly,” they trust.

A participant in the last meeting of the JGM said that President Milei told his ministers “I trust each one of you and you remain firm,” but clarifying that “now each one takes charge of his management.” If we are talking about second readings, the phrase reveals an issue that spokesperson Manuel Adorni almost always highlights in reference to permanence in office: “Francos and the Cabinet are each of the officials who accompany him. The Cabinet is also me. And we are all in permanent evaluation. When that evaluation shows that one of us is not up to the task, or we have completed a cycle and the president defined it differently, a stage is passed.”

What is coming next week in the legislative palace will revolve around discussing in the plenary session of committees – and then in the chamber according to the times – whether the projects of the chamber of origin, which is the lower one, are imposed. , or the changes agreed upon in the Senate, there is probably a mix, since Francos stated that “the specific modifications to the RIGI are the ones that we have to maintain because they qualify what had to do with local producers, SMEs and others.” In reference to the tax reform, he declared that “we want to insist on the issue of personal profits and assets because it has to do with the interest of the governors.” Regarding privatizable companies, the coordinating minister stressed that “we do not have a commitment that Deputies cannot insist on these issues,” and concluded by saying: “I suppose that those who held these issues in the first debate will hold them in the second.”

Beyond this package of specific regulations, the Government House has already announced that thousands of individual bills will be sent to Congress, among them, there will be those referring to security, defense, and of course those that “are required to continue moving forward with the reforms they make to the economic plan,” specified a technician from the political-financial area. The president spoke of 3,200 that have already been prepared to order, with the aim of preventing those “green traffic lights”, which the spokesperson told El Litoral that the Government is seeing, from becoming yellow lights. In that statement to this medium, the official acknowledged that “it is going to be a year of economic contraction”, but emphasizing that “we have to watch the full movie and see how high the flames were in the fire on December 10 that we are dealing with.” trying to get out,” he concluded.