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Politics After the setback with the Omnibus Law, the Government activates plan B to advance with the reforms by decree - Infobae

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After the setback with the Omnibus Law, the Government activates plan B to advance with the reforms by decree - Infobae

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February 15, 2024


This Friday, at the Casa Rosada, the officials closest to Milei will meet to define the path to take with the central points of the project that was truncated in the Chamber of Deputies.


By Joaquin Múgica Diaz

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Javier Milei with his Cabinet in one of the meetings that took place at the Casa Rosada

After the failure of the Omnibus Law and at the beginning of a new stage of management after the conflictive legislative novel, this Friday the Government will begin to work on a series of decrees and laws to be able to revive the central points of the bill that was rejected in Congress and which generated the beginning of a raid of accusations from President Javier Milei to the governors.

To begin this work, a technical table was formed to advance the modifications as soon as possible. The influential advisor Santiago Caputo , the former president of the Central Bank and ideologist of the bases law, Federico Sturzenegger , will be seated there ; the number two of the Chief of Staff, José Rolandi , and technical teams from the Ministry of Economy, led by Luis “Toto” Caputo , and from the Legal and Technical Secretariat led by Javier Herrera Bravo.
It will be the starting point of the Government's plan B after the legislative failure. The management of trusts, the promotion of investments and the central points of the bill appear on the agenda of topics to be discussed . At that table, the future of the pension system would also be discussed, which was hindered after the dialogue opposition refused to endorse the increase by decree. An issue that is at the top of the Government's to-do list.


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Federico Sturzenegger

“The law is going to become a reality,” the presidential spokesperson, Manuel Adorni, had anticipated in one of his morning conferences last week. He never explained how. And that is precisely what they must define at this Friday's meeting. Separate which topics go through a decree of necessity and urgency (DNU), simple decrees, administrative decisions or bill.
The meeting, which will be very technical, will serve to advance along a parallel path from the Executive Branch. For the action plan to have the meaning and fine print of what Javier Milei wants, Caputo, the advisor, will be sitting. “Santiago is the head of Milei. "He is clear about the spirit of what the President wants for his government ," stated an important official from the Casa Rosada.

The truth is that the Government is exploring a plan B to be able to give continuity to the administration and leave behind the tumultuous experience in Congress. “After what happened with the Omnibus Law, the Government has to reinvent itself . “It was immersed in the legislative field and it is time to activate another part of the political agenda,” was the description that a national official chose to portray this moment of the ruling party.

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The failure of the Omnibus Law forced the Government to activate plan B through decrees (Gustavo Gavotti)

What will be on the table is a package of measures linked to the deregulation of the economy. In parallel, the fiscal package that the Minister of Economy withdrew from the bill will remain floating in order for it to be supported by the governors. It is an issue that the Government decided to freeze as punishment for the lack of support from some provincial leaders.

The relationship with the leaders is extremely tense at this time. “We have open dialogue with the governors who want to have dialogue with the Government,” Adorni responded this Thursday. In the last few hours Milei has punished some governors, on whom he declared war after they did not give him their votes to pass the law.

Decrees are a limited tool, since current regulations prevent them from being used for issues that are linked to fiscal and tax matters. Just as a handful of months ago the issues that will go to the DNU on deregulation of the economy and those that would be part of the Omnibus Law were divided, now the wheat will be separated from the chaff again to avoid a new setback in Congress but, at At the same time, execute the reforms that the Head of State wants.

What is already ruled out is the possibility of sending the omnibus law again to Congress or doing it in fractions. “That issue is dead ,” they were honest in the Casa Rosada. What remains ahead for the Government is to draw up a new strategy to manage with the majority of governors and legislators against it.

The horizon remains the same: zero deficit. And the political objective, which will also be discussed at Friday's table, is to advance with the deregulation and debureaucratization of the economy, in addition to the shrinking of the structure of the State. Substantial reforms that did not advance in the Parliament benches.
 
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