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Politics Meeting with the Casa Rosada: the governors of the UCR and the PRO asked Milei for more changes to the Omnibus Law - Infobae

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Meeting with the Casa Rosada: the governors of the UCR and the PRO asked Milei for more changes to the Omnibus Law - Infobae
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January 23, 2024

The 10 leaders of the “dialogue opposition” had a summit with Guillermo Francos, Minister of the Interior of the Nation. The Government does not give up on removing withholdings from agriculture and industry. The dialogue remains open and the possibility of a majority opinion of the ruling party is blocked

By Robertino Sánchez Flecha


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Meeting with the Casa Rosada: the governors of Together for Change asked Javier Milei for more changes to the Omnibus Law

Minutes after 8 p.m., the Government accepted the request. A notification wandered through the WhatsApp of the 10 governors of Together for Change (JxC). “ There is Zoom with (Guillermo) Francos now . Those who can, come in,” said one of the leaders. The link on the meeting platform called the provinces to a virtual dialogue table with the Minister of the Interior of the Nation. The reason was to discuss the changes to the Law Bases and Starting Points for the Freedom of Argentines —baptized the Omnibus Law by public opinion—promoted by Javier Milei . Late on Sunday, the presidents of the dialogue blocs in Congress received a document containing the modifications that the Casa Rosada accepted. The text did not satisfy the opposition and the provincial leaders pressed for a valid interlocutor of the President to assist them.

After 8 p.m., the governors were already meeting with Francos yesterday. Some joined late, but wanted to be present anyway. Several were in Buenos Aires, with a management agenda, others in their provinces, some outside Argentina. During the conversation, the Minister of the Interior gave an account of the current situation in which the Omnibus Law would remain based on the adjustments that Milei accepted. These are changes that were requested by the leaders of the Radical Civic Union (UCR) and the PRO, as well as organizations from different aspects of the private sector that were affected by the 664 project. The conclave was not good , There was no agreement and the parties agreed to continue talking .

Leandro Zdero (Chaco), Maximiliano Pullaro (Santa Fe), Nacho Torres (Chubut), Jorge Macri (CABA), Gustavo Valdés (Corrientes), Rogelio Frigerio (Entre Ríos), Alfredo Cornejo (Mendoza), Carlos Sadir (Jujuy) participated . , Marcelo Orrego (San Juan) and Claudio Poggi (San Luis).

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The Minister of the Interior, Guillermo Francos (EFE/ Maximiliano Vernazza/)

The negotiations are with the governors of the PRO and the UCR and with four blocks of the opposition collaborative with the Government. Last Thursday, a group of legislators from those spaces met in the office of Martín Menem , president of the Chamber of Deputies of the Nation, with Pablo Quirno , Secretary of Finance of the Nation, and Carlos Guberman , Secretary of Finance of the Nation. Nation. The deputies gave him a draft that contained the reforms they asked to make to the Omnibus Law. The Government emissaries agreed to review the document and provide a response . That happened late Sunday. Yesterday morning, the opposition inspected the Casa Rosada brief and designed a joint resistance strategy .

The heart of the claim is in the fiscal package included in the mega articles. Observed by the International Monetary Fund (IMF), Milei has the challenge of reaching 2% of primary fiscal surplus . This implies a strong adjustment of public spending, which is carried out to achieve zero deficit and, eventually, move towards a surplus goal. The path that the Government chose to achieve this objective is to increase revenue by increasing export duties to regional economies, agriculture and industry. In addition, advance discretionary updates to retirements by eliminating the pension mobility formula . However, the Head of State yesterday agreed to go back on those points .

The points of conflict​

On the one hand, it left withholdings to regional economies at zero . But it maintains export rights for agricultural and industrial products . The original articles contemplate an update of the withholdings on corn and wheat, which would go from 12% to 15%, sunflower and meat would also reach that percentage. While soybeans would increase the tax by two points to remain at 33%. That section put the governors of producing provinces linked to the countryside, in the center of the country, on a war footing. For this reason, they shouted from Martín Llaryora , from Córdoba, to Pullaro , from Santa Fe .

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Martín Menem, president of the Chamber of Deputies (Maximiliano Luna)

Other topics discussed with Francos last night, in a meeting that lasted just over two hours and ended after 10 p.m., were the fishing regime , the situation of the co-participation of the City of Buenos Aires , the compensation demanded by the governors for the removed from Income Tax . The provincial leaders questioned the Minister of the Interior because the money laundering contained in the Omnibus Law cannot be shared. From the collection of Profits, the central State distributes 57% to the provinces, which implies 0.5% of the Gross Domestic Product (GDP).
The governors agreed to act collectively to be more effective in putting pressure on the Government. For this reason, everyone supported Jorge Macri when he asked that the situation of the City's co-participation be included in the discussion. The Head of the Buenos Aires Government demands that the Nation comply with the precautionary measure of the Supreme Court of Justice , which ordered the Casa Rosada to pay him 2.95% of the co-shareable amount in the form of a daily drip through Banco Nación. In parallel, the central State owes CABA $450 million for failing to comply with that ruling since December 2022.

The same thing happened when Nacho Torres insisted on making adjustments to the fishing regime . Due to the disagreement, the fishing districts demand that at this point the Government withdraw that chapter from the Omnibus Law and allow the Fisheries Law to be discussed separately . The governor of Chubut and the mayor of Mar del Plata, Guillermo Montenegro , -both from the PRO- expressed their dissent on the issue yesterday. The point of greatest conflict is that the Executive project “ discriminates ” against national fishing in the tenders, which give a nod to international fishing. A group of businessmen and fishing unions from that seaside city in the province of Buenos Aires will travel to the City to meet with Cristian Ritondo , head of the PRO bench in Deputies, and with Maximiliano Abad , national senator of the UCR and ally of Montenegro in Mar del Plata.

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The governors of Together for Change coordinate a pressure strategy for the Government to accept changes in the Omnibus Law

Due to the magnitude of the Omnibus Law, the Government has multiple open battle fronts . The JxC governors have a good conception of Francos as a bridge with La Rosada. “Guillermo (Francos) has all the cool. The inflexible one is the President ,” one of the leaders present at last night's conclave told Infobae . “We must recognize Francos that it is a type of dialogue and he is always well disposed towards the governors,” noted another.

The provinces claim that Milei's fiscal package forces them to face the bulk of the adjustment. They demand balance with the Nation and compensation . To give a wink, the Government today submitted to Congress the project that reinstates the Income Tax, under the name of the Personal Income Law. It will be a tax that can be shared and would imply relief for the provincial coffers. In any case, in JxC they insist that all withholdings be withdrawn, CABA's claim for co-participation be addressed, money laundering be co-participated, and the retirement mobility formula be perfected.

After the meeting, the governors presented new proposals for change and agreed to speak with the Government again in the next few hours. Milei seeks to accelerate the conversations to achieve a majority opinion and for the Omnibus Law to be discussed and approved in Deputies before the end of this week.

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Javier Milei, president of the Nation, seeks to accelerate the approval of the Bases Law (Photographer: Hollie Adams/Bloomberg)

With nuances in some articles, the PRO bench is more likely to support La Libertad Avanza. Mauricio Macri and Patricia Bullrich are pushing in that direction. On the other hand, the UCR and We Make the Federal Coalition, led by Miguel Ángel Pichetto and with the influence of governors such as Llaryora and Frigerio, threaten to go with their own ruling. It is a complex scenario for the ruling party. Without the support of all the blocs of the dialogue opposition, Unión por la Patria, which has the majority bloc, can achieve the majority ruling. It would be a political slap in the face for the Head of State.

These political tug-of-wars happen 24 hours after the strike and mobilization of the General Confederation of Labor (CGT) , Kirchnerism, and social movements. Will there be a session with people on the street? It will be known in the next few hours. The governors of the UCR and the PRO have a key to unblock the conflict with Milei and speed up the treatment of the Omnibus Law, but they will not do it in a closed envelope. The conversation is still open.
 
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