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Congress approves controversial Bases Law in Argentina

IMF spokesperson Julie Kozack welcomed the approval, which she described as "measures to strengthen the monetary policy framework."

The Congress of Argentina approved this Friday the Bases Law, in its instance omnibus law, which declared 11 areas of the State in emergency - economic, financial, fiscal, pension, security, defense, tariffs, energy, health, administrative and social. until December 31, 2025.

Hours after his first legislative achievement, the Argentine President, Javier Milei, seeks to advance another hundred structural reforms, Page 12 reported.

Milei announced that the structural reforms will continue. This time, with the so-called “litter law”. 

After six months of debate, negotiation with the friendly opposition, repression and arbitrary arrests, the Government of Javier Milei scored a victory in the negotiations with the IMF, which was expecting that the chainsaw and the blender would have sustainability with support in the Congress. This was expressed by IMF spokesperson Julie Kozack when she “welcomed Congress' approval of key fiscal and structural legislation.”

Kozack valued the approval of the Base Law and the fiscal package as “measures to strengthen the monetary policy framework” and joined the official discourse to maintain that the “objective is to improve the quality of fiscal consolidation, further reduce inflation and support economic recovery.”

Milei celebrated the parliamentary victory through a statement issued by the President's Office. “The approval of this law does not resolve the inherited catastrophic situation, but it represents significant progress in the mission of restoring a reasonable regulatory framework to begin retracing the path traveled in the last 100 years,” the text highlighted.

A new beginning?

“Now a new stage begins for the Government. The pragmatism reflected in Francos' appointment shows that the ruling party is willing to build political agreements. The sanction of the law strengthened Milei“Santiago Giorgetta, political analyst and director of Proyección Consultores, told Sputnik.

The ruling party rightly celebrated its first legislative victory in more than six months. In dialogue with Sputnik, Carlos Zapata, national deputy of La Libertad Avanza, highlighted that “the sanction of the Bases Law was perfect. The modifications are a way of externalizing the functioning of democracy.”

Opposition challenge

The criticism went beyond the venue. Despite constituting the first minority - with 99 seats out of the total of 257 - the Peronist opposition failed to block the sanction of a law conceived as harmful to society. “The Bases Law harms the development of the country. and the fiscal package is simply regressive. The rejection was absolute,” he summarized in dialogue with Sputnik Itai Hagman, national deputy of Unión por la Patria.

One of the most sensitive sections of the approved initiative refers to the establishment of a Large Investment Incentive Regime (RIGI). The chapter, which establishes separate tax, exchange and customs benefits for capital outlays exceeding 200 million dollars in strategic industries, was one of the most resisted by the opposition. “We are very concerned that there are so many concessions to foreign companies to the detriment of the national industry,” said Hagman.

“This law lowers taxes on the rich, violating the objective of reducing the fiscal deficit. It is extremely regressive. If the Government's objective was a fiscal surplus, it should have proposed raising the tax on personal assets,” said the deputy.

Preservation of native forests and even procreation will cease to exist

With the sanction of the official project, Milei will have the authorization to “modify, transform, unify, dissolve or liquidate public trust funds.” It is not something new: it had already been implementing, for example, the definancing of the FISU, in charge of carrying out works in the most deprived neighborhoods. There will also be no money for the Fire Management Plan or the Progresar scholarships for students, Argentine media reported.

The deputies of the ruling party and the dialogue opposition who voted early on Friday in favor of the Base Law and, in particular, Article 5, authorized the president Javier Milei to “modify, transform, unify, dissolve or liquidate public trust funds.” This is a policy that has already begun to be implemented by the Government with the definancing of funds such as Socio-Urban Integration (FISU) and Provincial Development.

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