President Javier Milei’s First Decree: Reduction of Ministries and Restructuring of Government

2023-12-11 20:18:39

The first Decree of Necessity and Urgency (DNU) of President Javier Milei – which was signed during the followingnoon of this Sunday, on his first day in the Casa Rosada, and published early on Monday in the Official Gazette – contemplates, among its main points the reduction of 18 ministries to 9. This is one of the first measures that aim to reduce public spending, which the libertarian leader made reference to during his presidential campaign in Argentina.

The DNU also contemplates that of the four Secretariats of State, Strategic Affairs, becomes dependent on the Chief of Staff, headed by Nicolás Posee, while the other three – Legal and Technical; of Communication and Press, and the General of the Presidency – will have the rank and hierarchy of the Ministry.

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In this first decree of the new administration it is stated that “it is necessary to adapt the provisions of the Law of Ministries and the objectives set with the purpose of rationalizing and making the actions of the National State more efficient.”

The portfolios that will operate from now on are Security, headed by Patricia Bullrich; Justice, in the hands of Mariano Cuneo Libarona; Economy, under the orbit of Luis Caputo; Foreign Affairs, headed by Diana Mondino; Interior, with Guillermo Francos at the head, Health, with Mario Russo and Defense, with Luis Petri at the head. And the recently created ones: Human Capital, by Sandra Pettovello and Infrastructure, by Guillermo Ferraro.

Regarding Health, there were several twists and turns: first it was considered to be under the orbit of Human Capital, then it was considered to be the secretariat of the Chief of Staff until finally it was decided to keep it as a ministry.

Regarding Human Capital, the attributions on “everything related to education, culture, relationships and individual and collective work conditions (…) social security are also detailed; food security, poverty reduction, the development of equal opportunities for the most vulnerable sectors (…) and matters related to access to decent housing and habitat.” That is to say, the former ministries of Social Development, Education, Labor, Women and Culture will be subsumed in this portfolio.

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As long as it is achieved that “in order to optimize public works, housing, communications and transportation policies, it is necessary to create the Ministry of Infrastructure.”

The defunct Ministry of Science and Technology, meanwhile, will be absorbed by the Chief of Staff, while Tourism and Environment and Sustainable Development will enter the organizational chart of the Ministry of the Interior, which will be led by Guillermo Francos. In all the demotions of ministries in secretariats, the DNU points out that “the budget credits, organizational units, assets, personnel with their positions and endowments in force to date” must be transferred. That is to say, there would not be a significant reduction in personnel and items.

The Energy Secretariat, which in Milei’s original design was planned within the Infrastructure orbit, will finally remain within the Ministry of Economy, which will be led by Luis Caputo. Although this is a crucial area for the design of economic policy, Libertad Avanza attributed the change to a bureaucratic issue.

“It is an area that regulates matters that require immediate signature and a transfer complicated management,” they explained. It is not yet defined, but it is estimated that in the coming months the migration from one ministry to another should be completed.

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