After six months of obstacles, Milei achieves the approval of its first laws

BUENOS AIRES (AP) — After six months of multiple obstacles and arduous political negotiations, Argentine President Javier Milei achieved approval in the Chamber of Deputies on Friday of two laws on economic, state and tax reforms with which he seeks to relaunch his administration. and ensure greater governability.

The lower house gave the green light to the legislation that was approved on June 13 by the Senate, thus sealing Milei’s first legislative victory since he assumed power in December and after resigning some points during the negotiations held with dialogue opponents.

In a statement, the government celebrated the result of the vote despite the “obstructionism” of the toughest opponents, considering that it will allow “the path towards the free and prosperous country that Argentines chose on November 19.”

He indicated that the achievement of the regulations enables on July 9, when a new anniversary of Argentine independence is commemorated, different former presidents, leaders of the main political parties and legislators to meet with Milei with a view to signing an agreement with 10 policies to refound the country.

The so-called Ley Bases, with labor and administrative reforms and the delegation of special powers to the president, and the fiscal package, which includes the reinstatement of a controversial tax on the wages of nearly one million workers with which the government seeks to swell the state coffers, obtained the support of a large majority.

However, both projects were resisted by leftist forces and Kirchnerism, the center-left Peronism that is the first force in Congress, where the ruling party is at a clear numerical disadvantage.

Opposition activists gathered outside Congress during the debate, which lasted more than 12 hours.

Milei, a far-right economist who defines himself as a “mole” who wants to destroy the State “from within,” has faced numerous obstacles to get his first laws in a framework of open confrontation with opponents whom he describes as “rats.” ” and “impeding machines”.

In the session that began on Thursday afternoon, the Chamber of Deputies, which had approved the two bills in April and then sent them to the Senate, had to decide whether to accept the changes made by the senators or insist on the original versions, which included some more in-depth reforms.

The draft Law of Bases turned out to be the least complex when it came to the government sealing an agreement with moderate opposition parties.

The new law contains some 230 articles with administrative, labor and contractual modifications, as well as the declaration of a public emergency in administrative, economic, financial and energy matters for one year, which will grant the president special powers to, among other things, restructure state agencies. This is practically half of the articles in the original version that the ruling party was defending.

In terms of labor reform, it includes as grounds for dismissal participation in blockades or seizures of establishments and the elimination of fines to employers for unregistered workers, which was highly questioned by Peronism.

Likewise, the project includes tax benefits for national and foreign companies that invest in projects in different sectors above 200 million dollars—another point resisted by Peronism and the left—and the authorization to declare public companies subject to privatization.

On the latter, the government agreed with allies to respect the Senate’s vote and keep Aerolíneas Argentinas, Correo Argentino and Argentine Radio and Television off the list of companies that could be privatized.

After the final sanction of the Base Law, the vote on the fiscal package was carried out. The reinstatement of the tax on the salaries of hundreds of thousands of employees achieved the necessary support in part due to pressure from the governors of the different provinces in need of fiscal resources.

In addition, the controversial Personal Property regime was approved with the purpose of encouraging money laundering, also included in the tax package.