2024-01-21 14:22:33
The Government of Javier Milei faces a “fire” test, in a fundamental week for the future of management. The days will be marked by the long-awaited signing of the opinion of the Omnibus Law in the Chamber of Deputies. This law, negotiated with the “allied” opposition, will represent a key component in the Government’s “tough” project to reduce the fiscal deficit. Officials affirmed that 80% is agreed, although the tensions and modifications mark another even more complex scenario.
Javier Milei, from the World Economic Forum in Davos, followed the negotiations closely. In his participation, reviled “collectivism” and defended “free enterprise capitalism” as morally superior. As he flew back, he communicated with officials to fine-tune details in Congress’ discussion of the Omnibus Law, critical to his economic goals.
Milei is torn between negotiations with “dialogues” and changes in the Omnibus Law
Key officials, such as Santiago Caputo and Interior Minister Guillermo Francos, They moved to Congress to ensure a majority ruling with the allied opposition. The Omnibus Law, considered the “heart of the plan to reduce the fiscal deficit,” was the subject of intense negotiations.
The Government’s counteroffer was presented as the only option, seeking to ensure the first political victory of La Libertad Avanza in Congress. Among the concessions made is the limitation of the period of validity of the emergency, the delegation of powers to the Executive and the return to zero withholdings for regional economies.
A critical point in the negotiations is the pension mobility formula. The opposition seeks to prevent increases from being at the discretion of the President until a new formula is established. The Government’s offer proposes maintaining the current formula or eliminating it, adjusting for the Indec Consumer Price Index in the next three months and agreeing on a new one in that period.
The debate on the Omnibus Law continues and the CGT prepares everything for the General Strike
Before the signing of the opinion of the Omnibus Law, the CGT called for a general strike that will focus on protesting once morest the adjustment. ANDIn the last week, various data reflect the impact on purchasing power and economic activity. The devaluation and the sharp increase in prices in December led the Government to authorize the increase in transportation and service rates.
In this sense, the Ministry of Transport proposes increase train and bus ticket prices, generating concern regarding the impact on citizens’ pockets. In parallel, a report from the UBA-Conicet Rates and Subsidies Observatory suggests that, without subsidies, the gas bill for the middle class might exceed $20,000 in June.
Another fundamental aspect was that the increase in rates and the devaluation strongly influenced the joint ventures. In this complex scenario, La Libertad Avanza faces the need to manage tensions in Congress and respond to the CGT strike, as it seeks to advance its economic agenda.
With information from BAE
Javier Milei, from Davos, follows the negotiations on the Omnibus Law, while preparing for the CGT strike. This week’s decisions will define the economic direction of the Government.
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