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The Government failed to unblock political support and decided to modify the retirement formula for DNU - Infobae
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El Gobierno no logró destrabar los apoyos políticos y decidió modificar la fórmula jubilatoria por DNU
En la Casa Rosada aseguran que se agotaron las instancias de negociación. En abril, la actualización será por IPC más un monto extra que rondará entre el 12 y el 14 por ciento. Luego, a partir de mayo, el ajuste será por inflación
www.infobae.com
March 21, 2024
In the Casa Rosada they assure that the negotiation opportunities have been exhausted. In April, the update will be by CPI plus an extra amount that will be between 12 and 14 percent. Then, starting in May, the adjustment will be for inflation
Javier Milei and Luis "Toto" Caputo
Time ran out. After several weeks of negotiations, doubts and political speculation, Javier Milei, in harmony with the Minister of Economy, Luis Caputo , decided to move forward via a Decree of Necessity and Urgency (DNU) with the delicate modification of the retirement formula. The measure had been evaluated for weeks, but the President postponed it because he aspired, before reaching this stage, to achieve sufficient prior consensus to deal with it by law - whether outside or within the Bases project. He wanted to avoid a possible judicialization of the decree or a possible rejection by Congress. But times were pressing and he decided to move forward.
The instances of political negotiation with the other parties for a possible legislative debate “were exhausted,” official sources said, and the publication of the decree would be imminent. It will probably appear tomorrow in the Official Gazette with the update format based on the Consumer Price Index (CPI) plus an extra percentage, which would be between 12 and 14 percent . They are two points above Caputo's initial proposal, which is, however, below the 20 percent that the opposition demanded.
Beyond the lack of consensus they perceived in politics, Balcarce 50 rushed the decision to prevent it from exceeding the April 1st joining date. In this way, the application of the new formula would apply the income of retirees as of that month. If they delayed the decision any longer, they warned, it would be postponed until June, which would make the social situation in the sector even more unsustainable.
With this measure, the Government definitively ruled out, as it had planned, PRO's requests to discuss the María Eugenia Vidal project for which the head of the block, Cristian Ritondo, had complained in his meeting last week at the national headquarters. The idea was always to avoid giving the initiative on this issue to the allies.
Thus, the libertarians were forced to resign that the new pension formula be treated within the framework of the Omnibus Law, as they initially wanted. The fact is that the debate in committee on the most important package for LLA would only begin after Easter , it would reach the venue from the second half of April and, if approved, the retirement item would only begin to take effect from May . A worrying scenario if one takes into account that inflation, although it has reached a downward trend, remains at double-digit percentages.
The DNU was the least desired option for the Executive, which has just suffered a strong setback with the deregulation in the Senate, amid strong criticism from other spaces for the unconstitutionality of the measure. And a decree not only faces the possibility of rejection by Congress, but also serious chances of it being judicialized, as happened with the labor reform and the increases in prepaid payments.
Now Milei will have to face the usual criticism for legislating through a route that usually generates controversy due to its unilateral nature, and that will probably add to the arguments of the deputies and senators most critical of the Government in the discussion about the Bases law and the first Milei's DNU. However, around Milei they argued this afternoon that they did everything possible and that they waited as long as possible to advance along the path of consensus, although they always remained firm that they were not willing to move from the percentage figure that coincided with the fiscal goals. of Caputo and his team. “They left us no other option,” they justified, doubtful about the eventuality of judicial presentations that could stop the application of the measure.
