This Thursday, February 1, the second day of debate on the ambitious, but weakened 'Omnibus Law', promoted by President Javier Milei, with which he promised to reform his country's battered economy, with inflation exceeding 200%, advances this Thursday, February 1. However, the bill is questioned by thousands of people protesting in the streets. The ruling party, with a minority in the Legislature, is trying to gather enough votes for its approval, even after last Tuesday, January 30, a court annulled the labor regulations included in the project.
The Lower House of the Argentine Congress debates in the second session the flagship project of President Javier Milei, the so-called 'Omnibus Law', while protests reign in the streets.
The ruling party La Libertad Avanza, with a minority in the Legislature, continues negotiating with the so-called “dialogue” deputies, in an attempt to obtain the necessary votes for the eventual approval of the Law of Bases and Starting Points for the Freedom of Argentines , official name of the initiative.
The session was resumed this Thursday, February 1 after a first debate on Wednesday at 11 a.m. However, difficulties in achieving consensus persist.
On Wednesday, incidents were reported outside Congress between protesters and security forces deployed in the area, while various organizations protested.
What does the 'Omnibus Law consist of and what has changed since it was presented?
The mega project, which ranges from economic policy to the privatization of state entities, is one of the main pillars of Milei's reformist push to address the South American country's worst economic crisis in decades. Argentina registers inflation greater than 200% and a poverty rate of 40% of the population. All while state coffers are depleted.
With this, Milei, who defines himself as a libertarian, proposed deregulating several sectors involved in the nation's finances, such as labor, commercial, real estate, aeronautics, health and of course economics.
The reforms aim to modify around twenty laws, but cover areas that according to the Constitution can only be changed by Congress, hence the crucial discussions.
One of the most controversial sections proposes declaring all public sector companies as “subject to privatization.”
In total, there are about 40 companies, ranging from the Banco de la Nación, the Casa de la Moneda, Aerolíneas Argentinas to the water company AYSA and Ferrocarriles Argentinos.
But beyond the financial area, it also includes important aspects of the country's politics. Another of the great controversies refers to the electoral reform, which proposes the elimination of the Primary, Open, Simultaneous and Mandatory elections (PASO), created in 2009, and in which the candidacies are determined, both for the presidential elections as legislative.
Also, if approved, the Executive will declare a public emergency in economic, financial, fiscal, defense, security, energy, tariff, fiscal and social matters, so Milei would obtain special powers to legislate in these areas at least until end of 2024, as Congress could extend it for another year.
But in the push to achieve approval of the mega law, the president has already accepted a hundred amendments. Initially, the initiative contained 664 articles and after difficult negotiations for its acceptance, its size was reduced to around 280 sections.
Among the main changes is the elimination of the oil company YPF from the list of state companies that would be privatized. The Milei Administration also removed a tax section divisive takeover of the bill last week to increase support.
Likewise, pension reforms were withdrawn. Last December, Milei announced a decree that would make several changes to labor standards, such as increase employment probation from three to eight months, reduce severance pay and allow the dismissal of workers who participate in blockades during the protests.
And last Tuesday, January 30, an Argentine court annulled labor rules proposed by the head of state that would make it easier to lay off workers, a new blow to the leader's efforts to modify regulations that, according to him, have hampered the economy of his country.
The appeals court had already temporarily suspended the president's new provisions in early January after a legal challenge brought by the main union group, the General Confederation of Labor.
However, the three-judge panel ruled this week that the regulations were unconstitutional, noting that the Milei government exceeded its authority to enact them and that they must first be approved by Congress.
The difficulties for the 'Omnibus Law' to be approved in Congress
The president faces a major challenge in passing his ambitious measures, as his coalition only has a minority in both chambers, meaning he has to win allies.
It only has 38 of the 257 seats in the Lower House. There it needs a simple majority, of 129 votes, to pass to the Senate.
“Today, politicians have the opportunity to begin to reverse the harm they have caused to the Argentine people,” Milei's office said in a statement released Wednesday, Jan. 31, urging lawmakers to support the bill as it began. the expected and gigantic debate between legislators.
However, in a sign of the challenge ahead, the main Peronist opposition bloc, Unión por la Patria, the largest group in Congress, indicated that it would reject the bill and published a photograph with the slogan “No to the project of Omnibus law” in X, formerly Twitter.
“We reject the Omnibus bill because it adds fuel to Milei's chainsaw to damage the daily lives of Argentines,” wrote Peronist politician and former Foreign Minister Santiago Cafiero, referring to his austerity plans to undo a deep deficit. fiscal.
Meanwhile, investors are watching closely, hoping that the initiative will be approved in a reduced version, which would strengthen local markets.
“The Omnibus bill now has a better chance of being approved in Congress (…) We continue to consider that the approval of radical reforms is positive for the medium-term narrative, even with a diluted version of the original bill,” said Fernando. Sedano, from the financial multinational Morgan Stanley.
If the law is approved in the Lower House, it will go to the Senate next week.
With Reuters and local media
#Argentina #Congress #debates #39Omnibus #Law39 #annulment #labor #regulations
