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Politics The Government minimized the CGT strike and focuses on the Omnibus Law: the bid with the provinces for withholdings - Infobae

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The Government minimized the CGT strike and focuses on the Omnibus Law: the bid with the provinces for withholdings - Infobae
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January 25, 2024

The governors demand changes in that part of the text, but the national authorities warn that if it is not sanctioned, the adjustment will be greater. In the Casa Rosada they believe that the deputies will not be willing to vote against the reforms

By Feerico Galligani

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Javier Milei, focused on getting the Omnibus Law out (EFE)

In the Government they constantly assure that there is a management objective that will not be modified: zero deficit and putting the State's accounts in order. Therefore, this argument is used by the main members of the Cabinet to maintain that the increase in withholdings for certain products will not be modified, a claim that the governors of the interior of the country have been making since the so-called Omnibus Law was presented.

“If all the economic measures proposed in the law are not approved, as President Javier Milei said yesterday (Tuesday), the adjustment will be greater, fundamentally for the provinces ,” warned the head of the Treasury Palace, Luis Caputo , in your X account.


Although this was one of the most discussed issues of the project package in the committee meetings of the Chamber of Deputies, which only issued an opinion on the initiative in the early hours of Wednesday, after weeks of debate, the ruling party believes that the legislators dialogueists will not be willing to vote against this section.


In fact, although they do not have a formal position on the matter, several members of the Cabinet downplayed the importance of the mobilization and general strike carried out by the CGT and denied that the criticism of the unionists affected the treatment of the law.

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The CGT made its first general strike against the government of Javier Milei

Although the provincial leaders continue to ask the Nation to modify the corresponding articles so that, as already accepted with certain regional products, the rest of the agricultural market does not pay the export tax either, there would be no more concessions .
In the Casa Rosada they consider that this is actually a political bid and not so much a genuine claim , since - they assure - the countryside is not so concerned about the tax in question and they highlight that the sector benefited from the reduction of the exchange gap.

However, next Thursday Caputo; the Secretary of Labor, Omar Yasin ; The head of the Transitional Unit for the Deregulation of the Economy, Federico Sturzenegger , and the Secretary of Communication and Press, Eduardo Serenellini , among other officials, will receive representatives of the business, productive and commercial chambers at the Casa Rosada, to analyze the omnibus law.

The meeting will include, for example, members of the Agricultural Intercooperative Confederation (CONINAGRO), the Argentine Rural Society (SRA), the Argentine Agrarian Federation (FAA) and the Argentine Rural Confederation (CRA).

At that meeting, the members of the Cabinet will defend the project and seek, among other things, the entities' support for the withholdings. As a bargaining chip, they will remind them that the campaign promise to free the exchange rate when the economy recovers is maintained .

Meanwhile, at the parliamentary level, the ruling party decided to postpone the debate on the project package until Tuesday of next week, to “be more prepared” and continue conversations with the dialogue opposition before the treatment in the chamber.

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The governors demand that withholdings be removed from the rest of the agricultural products (REUTERS)

In the Government they insist that President Milei trusts that “common sense will prevail” and that there will be the necessary votes to approve the reforms, but they deny that a negotiation is being carried out with the rest of the blocs.

However, in the early hours of Wednesday morning the decision of deputy Agustín Fernández to vote in favor of the majority opinion promoted by La Libertad Avanza and not to accompany the rejection presented by Unión por la Patria, a space to which he belonged, was surprising.

During the afternoon, while the CGT march against the current administration was taking place, the Tucuman, who answers to Governor Osvaldo Jaldo , announced the separation of his bloc and the creation of his own, called “Independencia”, together with his bench colleagues Gladys Medina and Elia Fernández de Mansilla

As Infobae learned , the legislators approached the ruling party after agreeing to the repeal of the sugar protection regime and the exclusion of lemon and its derivatives from the increase in withholdings, which were finally established at 0 percent.

If this support is maintained, La Libertad Avanza would have added three votes when it came to debating the law, while it already has a good part of the PRO, mainly those who are most identified with Mauricio Macri, with whom Milei speaks by telephone every day. weeks .

On the other hand, the ruling party is also looking for a way to be able to hold sessions over several days , instead of debating the initiative in a single day, to prevent the speeches from being extended and ending up with voting in the early morning, as happened on other occasions.

After the change in the deadline, the package would begin to be discussed in Deputies on Tuesday , so the meetings could last until Thursday, although this is still an idea, since, beyond the regulatory issue, they must also ensure that the legislators will be present at all meetings.

During the remainder of this week and the beginning of the next, the Government's representatives, mainly the Minister of the Interior, Guillermo Francos , and the president of the Lower House, Martín Menem , will continue conversations with governors and opposition leaders , to try to get as many articles of the law approved as possible.

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The Minister of the Interior, Guillermo Francos, together with the President of the Chamber of Deputies, Martín Menem, the Secretary of Parliamentary Relations, Omar De Marchi, and the Vice President of the Nation, Victoria Villaruel

It remains, for example, to bring closer positions with the Radical Civic Union (UCR), which maintains its criticism of withholdings and the elimination of the formula for updating pensions to replace it with increases defined by the Executive Branch.


“Minister Luis Caputo, our bloc yesterday allowed his government to have a commission opinion in record time, despite the government's unprecedented minority in Parliament. You will have the regulatory tools to carry out your management and economic plan. If your warning is for us to adjust retirees or increase withholdings, know that it's not going to happen. That is not going to be law ,” remarked the head of that bloc in Deputies, Rodrigo de Loredo , in response to the comment by the head of the Treasury Palace about greater adjustment to the provinces in case the measure is not sanctioned.

Tax reform​

As for Profits, a tax that is co-participable , unlike withholdings, although there is already a principle of agreement so that salaries can pay it again starting at $1,250,000 gross, the Government assures that it is a temporary measure.

In an official message, which sought to justify the return of this category, which will affect more than 800 thousand workers, it was highlighted that the tax will be reviewed again "to the extent that the stated objectives are met, specifically in terms of obtaining a fiscal surplus during the course of this year.”

“It is reflected in these fundamentals and the Honorable Congress of the Nation is informed that during the course of the year 2024 the National Executive Branch will present a comprehensive reform of the tax system in order to simplify it, achieve an increase in the base of registered taxpayers and reduce the fiscal pressure from January 1, 2025 onwards ,” it was clarified.

According to what sources from the Casa Rosada told Infobae , the economic teams of Milei and the current Minister of Security, Patricia Bullrich , who developed an initiative when she was a candidate for president, are already working on this project.

What is intended is for both groups to meet to draft a single law that contains aspects of the two reform ideas, although it will only be presented when the debate that is still taking place in Deputies ends.
 
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