2023-12-29 17:15:25
Starting this Friday, the Decree of Necessity and Urgency of President Javier Milei is applied with important cuts and – especially – a notable commitment to the deregulation and liberalization of the national economy. The document, which modifies or repeals more than 300 regulations, could still be annulled in Congress.
First modification: 12/29/2023 – 16:15
2 min
The Decree of Necessity and Urgency of economic deregulation has come into force in Argentina this Friday. The text declares a public emergency in economic, financial, fiscal, administrative, pension, tariff, health and social matters until December 31, 2025.
The decree modifies or repeals more than 300 regulations. Among the repeals is the regulations that prevent the privatization of state companies, such as the oil company YPF or Aerolíneas Argentinas.
It also includes rental and supply laws, and the labor regime. The private medical care system will also be reformed.
Among the many measures, the modification of the corporate law is contemplated so that football clubs can become public limited companies and satellite internet services are deregulated to allow the entry of companies such as Starlink, owned by Elon Musk.
Read alsoMilei gives the first snip to public spending and fires thousands of officials
Bicameral approval
The decree will now be examined by the Permanent Bicameral Commission for Legislative Procedure of Congress, made up of eight senators and eight deputies, to issue an opinion before it is analyzed separately in the two chambers that make up Congress.
The DNU could only be annulled if both the Chamber of Deputies and the Senate reject it. If only one of them does it, it will be implemented. Likewise, the DNU will be in force until both chambers are positioned.
Call for a general strike
The General Confederation of Labor, the main labor union in Argentina, called a general strike on January 24 in rejection of the decree and the package of projects presented by the president. The recently inaugurated Government has already faced several protests previously for its measures.
Read alsoThousands of people demonstrate against Milei’s reforms in Buenos Aires
Argentina is in a serious economic crisis, with year-on-year inflation of more than 160% and a poverty rate that exceeds 40%.
Milei, who assumed the presidency on December 10, had previously presented a broad austerity plan that includes the elimination of subsidies for transportation and public service rates and paralyzes the construction of infrastructure works financed by the State.
The objective is to cut public spending by the equivalent of 5% of the Gross Domestic Product. The currency was also devalued by more than 50%.
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