Caputo warned the governors that there will be cuts for the provinces if they do not support the Omnibus Law

2024-01-24 23:22:00

The tension between the Casa Rosada and some governors who do not support the Omnibus Law project in Congress showed its highest point in the expressions of the Minister of Economy, Luis Caputo.

This Wednesday, the head of the economic portfolio indicated on provincial items that will be cut immediately if any of the economic articles are rejected.”

“It is not a threat, it is confirmation that We are going to comply with the mandate that the majority has given us of Argentines to balance fiscal accounts, to end decades of inflation and economic scourge,” said the Minister of Economy.

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In the same sense, the presidential spokesperson, Manuel Adornihad expressed himself in the same sense: “It must be clear that the adjustment of public accounts will include all the items that the National Government transfers to the provinces. The zero deficit is not negotiated. “If they do not vote for the Law, they clearly understand that the adjustment will be greater for everyone.”

This Tuesday night, La Libertad Avanza obtained the ruling majority with dissenting signatures from “dialogue” sectors of the PRO, the UCR, We Make the Federal Coalition, Federal Innovation and uniblocs.

To achieve the ruling, the Executive made more than one hundred modifications to articles, among them the one that eliminates YPF on the list of companies to be privatized, the reduction to 0% of withholdings from regional economies and the elimination of the chapter that included electoral reforms, among other issues.

However, the ruling party is not guaranteed the number of votes necessary for the approval of a project that Milei considers key for his administration. With the risk of shipwreck of the first major project of La Libertad Avanza, the presidency of Deputies reported that The treatment will take place on Tuesday, January 30, instead of doing it this Thursday.

The objective is to get more time to make the position of some governors more flexible who consider some points to be non-negotiable, such as the increase of export duties (withholdings), the retirement mobility regime and the destination of the Sustainability Guarantee Fund (FGS).

One of the most notable examples is that of Martín Llaryora, governor of Córdoba, who stated that “even a primary school boy understands that this project goes once morest the industrialization of Argentina. This scheme that they propose to us is unacceptable.”.

“Rebel” governors

For his part, the president of the province of Santa Fe, Maximiliano Pullaro, commented that “I am not going to support the increase in withholdings. The government is right in ending the deficit and waste of the past, but repeats the mistake by putting a foot on the heads of those who producewho are the subject of the change that the country needs,” said Pullaro on his official X account.

“The productive provinces of the interior We want the Government to do well, That is why it is essential to maintain dialogue,” said Pullaro.

Caputo’s controversy with Pichetto

Miguel Ángel Pichettodeputy of the We Make Federal Coalition bloc and stated on the same social network: “The Minister of Economy, Luis Caputo, who did not have the courage to come to Congress, has to stop putting pressure on the governors and try to find agreements with provincial governments instead of threatening them.

“Deputy, if I have anything left over, it is courage” and added that it was not in Congress where the package of laws sent by the Government is being discussed because “I had more important things to do for the country “How to close the agreement with the Fund that was down and we were on the verge of default”

“The tweet is not a threat, It is an answer to all Argentines who wonder what would happen if Congress did not approve the law“I confirm that we are also going to meet the fiscal goal, which will imply that the provinces will have fewer resources,” the minister reiterated.

LM

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