The President of Argentina, Javier Millay (Credit: German Atlas/Xinhua via Getty Images)
Javier Milei has decided to carry out a major reform of the state, for which he seeks to provide at least a set of laws requiring the necessity and urgency (DNU) and congressional approval.
Three sources in the Argentine government told CNN that the DNU has unprecedented depth and was prepared by a team led by economist Federico Sturzneker, a former head of the central bank under Mauricio Macri.
According to the same sources, and while the proposals have not yet been officially presented, the mandate of necessity and urgency will cover the following topics:
–Deregulation of the Economy: “The general principle is that all economic and productive activity is unregulated.” EHowever, aspects that must go through Congress will do so in the form of a bill. This represents a total change of economic and social paradigm for Argentina. The bills also include reforming economic laws aimed at encouraging private investment in infrastructure.
–State Expenditures: The chapter will include cuts in ministries and political posts that Mili has already announced.
-“Ugra model”: The DNU covers everything from changes in government activity to economic restrictions and labor reforms, such as the recognition of the “Uocra model (Union of Construction Workers of the Republic of Argentina)”, where companies can choose unemployment funds. Changes compensation (not mandatory, but optional for applicable industries).
-General Employment: There will be changes in the way employees are recruited in the state. In this sense, one of the actions they take forward can be implemented No new employees can be hired in the last six months of any administration.
A set of measures to go through Congress
However, not all actions that Javier Milei wants to approve can be dictated by the administration. For this reason, the President is also preparing a package of laws to present to Congress. As the same official sources explain to CNN, the key points are:
-Tax and economic reform: A tax and economic reform, a political reform and a reform of the state were stipulated with aspects that could not be implemented by the DNU.
– Profit: The tax, which was abolished at the end of the administration of economy minister Sergio Massa, exempted a sector of high earners from income tax.
Repeal of Supply Act: A rule that allows setting maximum prices and profit margins.
–The Rent Act will be amended to: With the intention that contracts should be freely established between the parties.
–Pension: Changes are expected in the formula used to pay pensioners’ assets. Among other things, it He is considering a new pension adjustment formula that will not reimburse beneficiaries. While the matter is under discussion, the government confirms that the hike will be through an ordinance.
– Whitening: A 120-day ban on money laundering and debt consolidation with the Federal Administration of Public Revenue (AFIP) will be added, as well as changes in personal assets.
Privatization and closure of companies: It is these measures that will enable the President to privatize and close institutions; Milei proposes changes to public companies so that they become public limited companies.
– Passed: They want to abolish open, simultaneous and mandatory primary elections.
-single ticket: They want to change the voting system to use the voting system already used in counties like Santa Fe.
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