2024-04-04 00:24:12
With several claims in the pipeline and differences that still seem difficult to settle, The ten governors elected by the former label Together for Change will return to the Casa Rosada this Thursdaywhere they will be received by the Minister of the Interior, Guillermo Francos, to try to close agreements regarding the fiscal package of the new Omnibus Law promoted by the Government.
The meeting, which has been postponed since last week, will be decisive in the face of the signing of the May 25 Pact, which President Javier Milei conditioned on a fiscal pact with the provinces and the sanction of the “base law.” The consensus with the governors of Together for Change is important because it spills votes from the PRO and the UCR in Congress.
They will attend the meeting Alfredo Cornejo (Mendoza), Maximiliano Pullaro (Santa Fe), Rogelio Frigerio (Entre Ríos), Carlos Sadir (Jujuy), Marcelo Orrego (San Juan), Leandro Zdero (Chaco), Claudio Poggi (San Luis), Ignacio “Nacho” Torres (Chubut) and Gustavo Valdés (Corrientes). The head of the Buenos Aires Government, Jorge Macri, has another meeting planned with the Minister of Economy, Luis Caputo, regarding the transfer of co-participation to the City, and might send his vice president, Clara Muzzio.
The requests that the governors take to the Casa Rosada
The governors arrive at the meeting with differences regarding the restitution of the fourth category of the Income tax, which would now be called Personal Income. Francos announced that the non-taxable minimum floor will be updated and that a retroactive payment might be applied for an omission in the law sanctioned at the request of former Minister of Economy Sergio Massa.
The lack of agreement regarding Profits was evident in the first meeting with the leaders of all the provinces, on March 8. Among those who will speak with Francos this Thursday, there is support (such as Cornejo from Mendoza) and rejections (Torres from Chubut). Torres’ resistance represents all of Patagonia, a region where the reversal of profits in sectors such as oil would have a strong impact.
The governors will bring their own proposals. In the case of Cornejo, he will not only demand the return of Profits, but also the co-participation of the PAIS tax. The thing is that the Milei government increased the rates and therefore the collection increased, but everything remains for the Nation.
The man from Mendoza added a third claim, which has to do with the validity of the Fuel Tax, with which subsidies for inland transportation were financed. The Nation eliminated that assistance, but continues to collect the tribute; Cornejo will ask that they offer “compensation” or, in any case, stop charging it.
A moment of bad relationship
The Nation’s relationship with the governors is not going through its best moment. Milei’s recent statements are added to the funding cuts and the stoppage of public workswho maintained that “it was a mistake to speak with the governors in a transparent and honest way.”
The leaders, meanwhile, demand that the fiscal effort be shared. “The Nation is seeking to achieve zero deficit and we agree with that diagnosis, because it is good for Argentina. We want to support that, but not at the cost of making the provinces pay for adjustments in things that some of us have been doing well,” Cornejo warned this Wednesday.
The provinces are harmed by three measures dictated by decree: the definitive elimination of funds to improve teacher salaries and to subsidize public transport in the interior; and, in the case of 13 of the 24 districts, the end of transfers to pension funds not transferred to the Nation.
Among the provinces affected by this last measure whose governors will be present this Thursday are Santa Fe, Chaco, Chubut, Corrientes and Entre Ríos. Before the meeting, Valdés from Corrientes revived the claim and specified that the Nation owes his province $25,000 million for this concept.
“Just as they charge us, we demand that they pay us what they owe us”
“Just as they charge us, we demand that they pay us what they owe us,” Valdés warned, and warned the national government: “We have very stable resources. We have no debt, we manage well. They are not going to squeeze us with money. The Kirchnerists tried to do it; “Don’t try the same path.”
From the Casa Rosada, meanwhile, they try to show optimism. “We feel that there is more and more consensus and more understanding,” Presidential spokesperson Manuel Adorni expressed in his press conference regarding the “base law.” The “hook” for the governors’ support are the incentives provided in the project to attract investments in key sectors of the economy, such as energy and mining.
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