Financial markets reacted positively this Thursday (13) to the approval by the Argentine Senate of the Law of Bases and Starting Points for the Freedom of Argentines, the main project of Javier Milei’s government, considering it a sign of governability and sustainability of the libertarian president’s economic program.
“The market reacted, as we all expected, with a dose of common sense,” said the presidential spokesman, Manuel Adorni, in his usual press conference at the government headquarters, noting that the shares of Argentine companies listed on Wall Street had significant increases, sovereign bonds have recovered 4% of their value and country risk, an indicator for external investors, is down, at 1,393 basis points.
“This is happening when investors on the other side see Argentina as a country that has decided to move forward and wants to end 100 years of decadence. We are starting to respect freedom and democracy as a mantra,” Adorni emphasized.
On Wednesday night (12), the Argentine Senate approved the long-awaited Basic Law, Milei’s megaproject that establishes the legal structure for the profound transformation of Argentina’s economic and social model.
After general approval by the Senate, which introduced some changes to certain chapters, the bill now returns to the Chamber of Deputies for a final analysis.
The market values the fiscal balance achieved by the Executive in the first half of the year, but it is expected that this law and the new fiscal package will provide sustainability to the fiscal adjustment applied by the government.
“Without a doubt, it was the best economic day for the government,” Argentine analyst Christian Buteler told Reuters, citing the approval of the bill.
Furthermore, the Executive needs to show governability, since its political party, A Liberdade Avança, is a minority force in Congress and, therefore, needs to negotiate with other political sectors. The Peronist bloc, with strong representation in both chambers, has been reluctant to approve Milei’s initiatives.
The Basic Law was approved in general, but when voting on the individual articles of the tax package, senators rejected the modification of the tax on personal assets and the refund of income tax on salaries.
The bill will return to the Chamber of Deputies, which can still vote on the bill with the changes proposed by the Senate, or the government can insist on the original text it intended. (With EFE Agency)
#Financial #markets #react #positively #Argentine #Senate #approves #Mileis #megaproject