2024-03-15 18:23:41
While the Senate will discuss today the approval or rejection of the mega decree of Javier Milei, which unleashed a strong internal conflict with his vice president Victoria Villarruelthe Government distributed to governors and legislators the draft with the new omnibus law, titled Law of Bases and Starting Points for the Freedom of Argentines, after the first version was rejected in Congress.
The Government proposes to promote a fiscal relief package that includes a Tax Moratorium, the Modification of Internal Taxes on Tobacco, and the Elimination of the Tax on the Transfer of Real Estate of Individuals and Undivided Estates.
The new text comprises 177 pages in which 269 articles divided into 11 titles are displayed. Among the topics to be discussed, similar to the original project, are Emergencies and powers for the Executive Branch, a reform of the State, articles on debt consolidation, economic deregulation, defense of competition, and the Incentive Regime for large investments (RIGI).
The first title of the project refers to the declaration of emergency and the delegation of powers. Of the eleven originally proposed and the six that were voted on in the last opinion, only four emergencies remain for a period of one year: administrative, economic, financial and energy.
One of the Government’s concerns is to advance in reforming the State with the goal of freeing citizens from their burden. In this chapter, articles are proposed referring to Parliament delegating to the Government the tools to be able to in the central or decentralized Administration: reorganize; merge, transform, partially or totally dissolve organs or agencies of the central or decentralized administration created by law or regulation of equivalent rank (universities, CONICET and INTA are excluded).
Trust Funds are also included. This point was what led Milei to make the decision to withdraw the project at the time, after her defeat during her treatment in the Chamber of Deputies.
At this point, the new project hopes that the Executive Branch can modify, dissolve or determine the extinction of public trusts and that the funds pass to the National Treasury until the next Budget law is passed.
Omnibus law: privatizations
There is also insistence on the privatization of certain public companies. The companies Aerolíneas Argentinas SA, Energía Argentina SA and Radio y Televisión Argentina SE are declared “subject to privatization” and subject to privatization/concession to Agua Y Saneamientos Argentinos SA, Correo Oficial De La República Argentina SA, Belgrano Cargas Y Logística SA, Sociedad Operadora Ferroviaria SE (Sofse), Corredores Viales SA and YCRT.
While the companies Nucleoeléctrica Argentina SA, Banco De La Nacion Argentina (and all companies of Grupo Nación) and Empresa Argentina De Soluciones Satelitales SA may only be partially privatized, with the National State having to maintain the majority participation in the capital or in the formation of corporate decisions.
Regarding privatizations, it is important to highlight that the Bicameral Privatization Monitoring Commission will intervene in the processes carried out.
Dissolution of state organizations
The new Omnibus Law also empowers the national Executive Branch to modify, eliminate powers, functions or responsibilities of central or decentralized administration bodies “whose maintenance is unnecessary.” It may also provide for its “reorganization, centralization, transformation, merger, split, total or partial dissolution and transfer to the provinces or the Autonomous City of Buenos Aires, prior agreement that guarantees the due allocation of resources.”
National universities, the National Scientific and Technical Research Council (CONICET) and the National Institute of Agricultural Technology (INTA) are excluded from the power of total dissolution.