President Javier Milei has already returned to Argentina, after his meeting with the former president and Republican candidate for the White House Donald Trump, at the Conservative Political Action Conference. Upon his return to the national agenda, the Argentine president begins a new week full of tensions with the governors of the provinces and with strikes promoted by different unions, in an increasingly complex political scenario.
Last Saturday, February 24, the Argentine president, Javier Milei, and the former president and Republican candidate for the White House Donald Trump met at the annual Conservative Political Action Conference (CPAC), organized in National Harbor, Maryland, United States.
There, Trump praised Milei for his efforts to lead Argentina and stabilize its economy, pronouncing his popular slogan “Make America Great Again” but adapted to Argentina “Make Argentina Great Again.” Meanwhile, Milei encouraged Trump in his electoral race heading into the November elections.
At CPAC, the Argentine president spoke about the dangers of socialism, just as he did at the World Economic Forum in Davos, Switzerland.
Trump's praise adds to that offered by the top US diplomat, Antony Blinken, who was visiting Argentina on Friday. “The work being done to stabilize the economy is absolutely vital,” Blinken said at a news conference, calling his meeting with Milei earlier in the day “incredibly positive.”
However, while Milei was reaping American praise, the political climate in Argentina continued to heat up, due to the intersections between the national government, the provinces, and the unions demanding wage increases.
In that sense, the presidential spokesperson, Manuel Adorni, this Monday, February 26, in his usual press conference at Casa Rosada (seat of Government), maintained that “in no way is there a problem of governability” in Argentina, a country that, in its opinion, “it is in a process of more maturity than in other times.”
These statements come as a result of the clashes between Milei and some governors who, on alert for the suspension of the sending of funds to their provinces by the Nation, warned of actions that could harm the national Executive.
Adorni assured that the Milei Government maintains the objective of “transparenting some issues that had a lack of control” and of preventing, in the face of the governors' arguments, that they continue to “live at the expense of the Argentines.”
What is the claim of the governors towards Javier Milei?
The 'shock' plan promoted by the Argentine Government unleashed a strong fight with the governors, who are affected by the cut in the sending of funds to the provinces, something they describe as a punishment after the failure of the 'Omnibus Law' in the Chamber of Deputies.
Of the 23 Argentine provinces, plus the autonomous city of Buenos Aires, none is governed by La Libertad Avanza, the far-right party led by Milei, so the national government does not have direct support from regional leaders.
Although the provinces receive the co-participable funds, which are collected from taxes and sent automatically, the governors demand the reduction of discretionary transfers and the elimination of trust funds, different boxes of money that were used for works, payments of salaries or pensions, among others.
Due to the tensions, Last week the president called the provincial leaders “fiscal degenerates”, who began to move against the Argentine Executive.
The province of La Rioja went to the Supreme Court of Justice to request that the application of the Milei decree be suspended and began to issue a 'quasi-currency' (a substitute currency for the peso) to be able to meet its expenses.
La Pampa also went to Court, but to claim for the removal of transportation subsidies.
For their part, Río Negro and Misiones sued the national State last week for not sending the provinces the teacher incentive funds that are used to pay about 15% of teachers' salaries.
The Patagonian province of Chubut has already achieved a favorable ruling in a lower court for the defunding of public transportation. And it is with the governor of this province, Ignacio Torres, with whom Milei has had strong disagreements, after he threatened to cut off the supply of gas and oil if he does not receive the funds he demands, a decision that has been supported by the majority of the provinces.
The role of Chubut in the supply of hydrocarbons
The controversy with the province of Chubut was unleashed by funds that the province owes to the national State, by virtue of which the Executive led by Milei withheld in February 13.5 billion pesos (15.7 million dollars) that should be transferred to the province. for federal tax sharing.
The national government justified itself by reporting that this withholding is legal since Chubut has taken on debt by putting as collateral the funds that correspond to it from the federal co-participation.
However, the provincial government, headed by Ignacio Torres, assures that this measure is “arbitrary” and that it tried to manage a restructuring of the debt and then a cancellation of it before the new Argentine Administration and had no response.
In this sense, Torres warned that, if the Nation does not restore the funds, it will suspend the shipment of hydrocarbons. Chubut is the second largest oil producer in Argentina (almost 21% of the country's total) and the third in natural gas (6%).
President, I want to tell you that, unlike others, I am not afraid of you. We will not give in to his insults, threats or pressures. I do not believe in violence and I am going to defend the people of Chubut to the last consequences.
You have to govern for all Argentines,… https://t.co/jYKW8pahFG— Nacho Torres (@NachoTorresCH) February 24, 2024
And although Milei said that a suspension in the shipment of oil or gas would imply “violating a right to property”, something that he pointed out as “a crime”, the Argentine Constitution indicates that natural resources are the property of the provinces, the which can give concessions to companies for their exploitation, as happens with hydrocarbons.
Before the cameras of the news channel 'La Nación +', Milei stated that Torres is “a poor boy who cannot read a contract” and has “a very great intellectual precariousness.”
Milei, between protests and expectations for his speech before Congress
The week began with new protests against the Administration of the libertarian leader, promoted by the State Workers Association (ATE), who demand an “urgent” labor recomposition. From the union they recalled that during the last joint meeting, held on February 19, the Government offered a 12% increase when the inflation of 20.6% in January had already been announced, according to the information published by Télam .
For its part, the Confederation of Education Workers of the Argentine Republic (CTERA) also organized a day of work stoppage this Monday, the first day of classes in schools and a day before meeting with national authorities to “demand “The transfer of funds for educational purposes to all provinces and the opening of a salary negotiation table at the national level.
This is one of the many teaching unions, but one of the most combative, which complicated the start of classes in the city of Buenos Aires and the provinces of Corrientes, San Luis, Santa Fe, Córdoba, Entre Ríos, Formosa and Mendoza.
The Argentine president's week will conclude on Friday, March 1, the day on which he will give his first speech before the Legislative Assembly, within the framework of the opening of ordinary sessions in Congress. A presentation that will be full of expectations, given that it will be Milei's second presentation in the Legislative Branch (the first was on December 10 at his inauguration) and the first after the failure of the “Omnibus Law.”
With EFE, Reuters and local media.
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