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Politics The Government awaits the meeting with the provinces to decide the content of the new Omnibus Law and the fiscal pact - Infobae

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The Government awaits the meeting with the provinces to decide the content of the new Omnibus Law and the fiscal pact - Infobae​


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March 05, 2024

Beyond the guidelines provided by Javier Milei, there are few definitions from the Executive Branch. In the Casa Rosada there are different versions and for now they only assure that they are “committed to listening.” The President will delegate the new stage of negotiation to Guillermo Francos and Nicolás Posse

By Brenda Struminger

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The Minister of Economy, Luis Caputo, the Chief of Staff, Nicolás Posse, and the Minister of the Interior, Guillermo Francos, coordinated the invitation to the governors to begin the path towards the May Pact

In his very long speech before the Legislative Assembly, Javier Milei mentioned only in broad strokes the reforms with which he wants to advance in the regular sessions of Congress, but he omitted to define the deadlines and the instances in which he will promote each one. And although the Government has already announced that it will convene the governors this Friday to begin discussing them, it has not yet defined what measures it will include in the renewed Omnibus Law; if he will present them with the fiscal package; whether it will include initiatives that were not included in the first version; and which ones will remain until June, when progress has been made, eventually, with the now famous “May Pact” .

In fact, they assure that it is possible that the 10 points of the eventual agreement that Milei presented on Friday will not even be addressed in this first session. “Surely we will focus on the most urgent issues. We are not ruling out any issue but that is still missing,” they said. Earlier, Francos had assured on TV that one issue does not condition the other, but, quietly, the Government admits that the immediate projects are strictly related to the pact. “It's all part of the same idea that we need tools to move the country forward,” they considered.


For now, Balcarce 50 warns that all the details of the new battery “are under evaluation” and that they will wait to hear from the leaders to make any decision. The tax chapter, for example, could be included in the next package of laws, or treated separately. And although they warn that they could add axes that were not in the original project, such as labor and/or penal and/or pension reform, they do not rule out strictly treating the 300 articles that were left in the modified version in January.

The tactic of “listening” a priori is a reversal compared to the strategy that the libertarians had adopted in the first stage of the administration, when they privileged firmness and confrontation in the face of federal power. “Those were the first rounds. We were measuring ourselves. Today we believe that on both sides we already know that we all have firepower and we need each other,” an official assessed.

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Milei at Expoagro

Amidst the doubts, there are several “minimum” points on which they believe there is sufficient consensus; and points that will be definitively excluded. Thus, the “Bases” law would without fail include the granting of extraordinary powers to Milei; the privatization of state companies; the reform of the State and the promotion of a new regime of large investments. The tax chapter would include Profits, money laundering, moratorium and the advance of Personal Assets. And they would not insist on increasing withholdings.



Beyond those points on which - they believe - there is agreement, uncertainty prevails in the provinces regarding the Government's proposal, after the President laid the foundations, in broad strokes, of his intentions for the ordinary sessions. And some distrustful dialogue leaders will not stop raising the claim for the restitution of the funds that Economía cut from them in retaliation for the lack of support for their founding project. In the Casa Rosada they say that they will listen to any claim, but they warn, a priori , that they are not willing to deviate from the fiscal goals.

In addition to the lack of definition regarding the agenda for each stage, it is not clear if the president will be the one to receive them on Friday, although it seems that he will delegate the conversation to the ministers of the relevant areas. This morning, Francos, the main person in charge of dialogue with the provincial Executives, said that Milei may "stop by to say hello", but that he would not lead the meeting. Which was already generating some incipient resentments among the dialogueist governors. “It makes noise (that he is not there). Call, ask for support for the Omnibus Law and then fiscal pact. But he sends the ministers to the meeting. "It's going to create a mess," they outlined in one province.


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The governors at the inauguration of the ordinary sessions of the National Congress
The Government does not consider it necessary for Milei, after the general call, to be part of a first approximation. “Presidents are not usually in the most technical parts, they join in for the political part, for the signature ,” they justified. And they highlighted that the head of state is showing “commitment” and “will” to the governors by ordering the Chief of Staff, Nicolás Posse, and the Minister of Economy, Luis Caputo, to join the negotiation.

Until now, the main person in charge of contacts with the rest of the parties had been Francos and, at times - although in a reserved manner - the presidential advisor Santiago Caputo. But Posse and Luis Caputo, who had very specific interventions during the first legislative debate, are preparing to occupy a more prominent role . For example, the Presidency announced the call for Friday after a meeting between both together with Francos at Government House; and before, on Friday, the coordinating minister had received the libertarian bloc for the first time, in a sign that he will be more directly involved in the parliamentary discussion.

“It is a sign of the seriousness with which we are taking this new stage of the relationship,” they said in the Government, after the governors and important deputies of the dialogue groups complained about the lack of definitions on the part of the interlocutors. that Milei sent to try to establish agreements.
 
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