Politics Thread: President Javier Milei - Decree of Necessity and Urgency (DNU) in real-time

[Nasdaq]

Thread: President Javier Milei - Decree of Necessity and Urgency (DNU) in real-time

I've taken the initiative to start a thread dedicated to discussing the Decree of Necessity and Urgency (DNUs) as they unfold. This will serve as a centralized space for us to engage in conversations about their implications on both the community and the country.

1st DNU: Reduction of Ministries Restructuring


Milei's inaugural Decree of Necessity and Urgency (DNU) as president aimed at halving the number of Presidential Ministries, reducing them from 18 to 9. The newly structured Ministries are as follows:

• Security (Patricia Bullrich)
• Health* (Mario Russo)
• Justice (Mariano Cuneo Libarona)
• Economy (Luis Caputo)
• Defense (Luis Petri)
• Foreign Affairs (Diana Mondino)
• Interiorᵗ (Guillermo Francos)
• Infrastructure*** (Guillermo Ferraro)
• Human Capital** (Sandra Pettovello)

*Initially slated for elimination, the Health Ministry was retained.

**Human Capital now serves as an overarching ministry for the former Ministries of Social Development, Education, Labor, Women, and Culture.

***Infrastructure is now an umbrella ministry encompassing the former Ministries of Public Works, Transport, and Communications.

The Ministry of the Interior now oversees Tourism, Environment, and Sustainable Development.

Furthermore, the former Ministry of Science and Technology has been incorporated into the Chief of Staff's responsibilities under Nicolás Posee, with Karina Milei assuming the role of General Secretary of the President of the Nation.


- Economic measures are to be announced tomorrow by Luis Caputo (Minister of Economy) - The expectations are at least a devaluation followed by some form of tax reduction.

- A militant of Kirchnerism was arrested for assaulting a member of the presidential security detail yesterday, having thrown a glass bottle at Milei and his sister.

- A de facto bank holiday has been in effect for the MULC/forex market pending tomorrow's announcements

- Price lists updated to show grocery stores with 20% increases

 

[Larry]

Detuvieron a Gastón Mercanzini, el hombre que le arrojó un botellazo al Presidente

Gastón Mercanzini fue arrestado por la Policía Federal y la Policía de la Ciudad en la puerta de los estudios de Crónica en San Telmo. La llamativa herida en su frente

www.infobae.com

This K. thug is a bit of a nut. I used to see him come into a few bars and restaurants in San Telmo for a few months. That's why I don't really like San Telmo as his type hang out there. He was often times trying to sell people things. Everyone just ignored him but sometimes it was hard as he would keep talking to you even if you weren't talking to him.

Finally some owners banned him from entering and my friend the owns a bar told me he was trying to steal money from register and the tip jar. Typical K. thug stealing from business owners.

 

[sergio]

Thank you so much for starting this thread.

 

[Nasdaq]

Economic Measures Announced by Luis Caputo

• BCRA Dollar of $800 ---> Dollar Tarjeta of a minimum of $1,320; new increase in the Impuesto PAIS, imports, and non-agricultural exports
• Employment contracts that are valid for less than one year are not renewed.
• The suspension of the media budget for one year (i.e. the "Primero la gente" propaganda was funded by this I believe)
• Ministries go from 18 to 9 and Secretariats from 106 to 54
• Co-participation funding to provinces/CABA reduced to the legal minimum
• All no new tenders for public works, and all those yet to be started are canceled
• Reduction of energy and transportation subsidies (amounts not specified yet)
• Social plans maintained
• Once this emergency is over, there will be an elimination of all import duties
• SIRA import system to be replaced with a statistical and import information system that will not require prior license information
• Doubling of the AUH and 50% the Alimentar Card

 

[earlyretirement]

Thank you @Nasdaq for posting this. It will be a great thread to follow over the next few months. Thanks for taking the time to put it up!

 

[Vero]

A quick question? So if you pesify incoming Dollars, for example by bank transfer, they will be worth 800 Pesos per USD?

 

[Wally]

A quick question? So if you pesify incoming Dollars, for example by bank transfer, they will be worth 800 Pesos per USD?

That is correct (assuming $800 is the buy/compra rate, otherwise if it's the sell/venta, which is a little less).

If you're an exporter, 80% will be via the MULC (the BCRA dollar) and 20% via the CCL rate.

 

[Billy Goat]

Just an update to this thread. There were many major updates (30 of them) and changes there were announced today by President Milei and his administration. You can see the source here at this link. You can use Google Translate or Use the Chrome browser and just instantly translate to English:

El decreto completo: las 30 medidas que anunció Javier Milei en cadena nacional

Derogación de la ley de Alquileres, Tierras, Abastecimiento, Promoción Industrial y Comercial; transformación de empresas el Estado en sociedades anónimas para su posterior privatización

www.lanacion.com.ar

-Revocation of the Rental Law, as suggested by Ambito, entails the elimination of stipulations such as fixed 2-year contracts, the option for dollarization or other currencies, indexation based on various scales, a two-month deposit (refundable after 60 days), flexibility in choosing any form of guarantee, and the transfer of responsibility for both routine and extraordinary expenses to tenants. Additionally, the requirement for an email address for communication purposes is no longer mandatory.

-Abolishment of the Supply Law, which previously established ceiling prices for essential commodities and imposed penalties on businesses for any instances of abuse.

-Elimination of the Gondola Law, which previously governed the presentation of products in both physical stores and online platforms, specifically applied to categories like food, beverages, cleaning products, and perfumery.

-Repeal of the National Purchase Law, which previously provided advantages to domestic micro and small-to-medium-sized enterprises (SMEs) during tender processes.

-Abolition of the Price Observatory, an entity responsible for monitoring and recording prices within Argentina.

-Repeal of the Industrial and Commercial Promotion Law, which encouraged the growth of the domestic Argentine industry through fiscal and financial incentives like tax reductions, tax credits, and subsidies.

-Revocation of laws designed to prevent the privatization of state-owned companies.

-Abandonment of the State Companies Regime.

-Transformation of all state-owned enterprises into public limited companies with the intention of subsequent privatization.

-"Modernization" of the labor regime, a euphemism for changes such as extending the trial period from 3 to 8 months, providing employers with increased flexibility in terminating employment with limited recourse for employees.

-Reform of the Customs Code and the removal of export prohibitions.

-Repeal of the Land Law.

-Abolition of the Fire Law (with some uncertainty).

-Repeal of legislation governing sugar mill production.

-Liberalization of laws pertaining to wine production.

-Abolition of the Mining Trading System and the Mining Information Bank.

-Granting authorization for the government to sell some or all of its shares in Aerolineas Argentinas.

-Adoption of an Open Skies Policy.

-Modification of the Civil and Commercial Code to ensure that contracts in foreign currency must be settled in the same currency.

-Modification of the regulatory framework for Prepaid Medicine and Social Works, potentially allowing for an increase in monthly fees without requiring approval from the Ministry of Health.

-Incorporation of Prepaid Medicine companies into the Social Work regime, enabling them to cater to both markets and allowing for flexibility in employer contributions to any chosen provider.

-Reinstatement of Electronic Prescriptions.

-Modifications to the regime of pharmaceutical companies to stimulate competition.

-Amendment of corporate law to facilitate the transformation of Soccer Clubs into public limited companies.

-Deregulation of satellite internet services, facilitating the operation of companies like Starlink.

-Deregulation of the tourism sector.

-Digitization of DMV procedures.

 

[Nasdaq]

Just an update to this thread. There were many major updates (30 of them) and changes there were announced today by President Milei and his administration. You can see the source here at this link. You can use Google Translate or Use the Chrome browser and just instantly translate to English:

El decreto completo: las 30 medidas que anunció Javier Milei en cadena nacional

Derogación de la ley de Alquileres, Tierras, Abastecimiento, Promoción Industrial y Comercial; transformación de empresas el Estado en sociedades anónimas para su posterior privatización

www.lanacion.com.ar

-Revocation of the Rental Law, as suggested by Ambito, entails the elimination of stipulations such as fixed 2-year contracts, the option for dollarization or other currencies, indexation based on various scales, a two-month deposit (refundable after 60 days), flexibility in choosing any form of guarantee, and the transfer of responsibility for both routine and extraordinary expenses to tenants. Additionally, the requirement for an email address for communication purposes is no longer mandatory.

-Abolishment of the Supply Law, which previously established ceiling prices for essential commodities and imposed penalties on businesses for any instances of abuse.

-Elimination of the Gondola Law, which previously governed the presentation of products in both physical stores and online platforms, specifically applied to categories like food, beverages, cleaning products, and perfumery.

-Repeal of the National Purchase Law, which previously provided advantages to domestic micro and small-to-medium-sized enterprises (SMEs) during tender processes.

-Abolition of the Price Observatory, an entity responsible for monitoring and recording prices within Argentina.

-Repeal of the Industrial and Commercial Promotion Law, which encouraged the growth of the domestic Argentine industry through fiscal and financial incentives like tax reductions, tax credits, and subsidies.

-Revocation of laws designed to prevent the privatization of state-owned companies.

-Abandonment of the State Companies Regime.

-Transformation of all state-owned enterprises into public limited companies with the intention of subsequent privatization.

-"Modernization" of the labor regime, a euphemism for changes such as extending the trial period from 3 to 8 months, providing employers with increased flexibility in terminating employment with limited recourse for employees.

-Reform of the Customs Code and the removal of export prohibitions.

-Repeal of the Land Law.

-Abolition of the Fire Law (with some uncertainty).

-Repeal of legislation governing sugar mill production.

-Liberalization of laws pertaining to wine production.

-Abolition of the Mining Trading System and the Mining Information Bank.

-Granting authorization for the government to sell some or all of its shares in Aerolineas Argentinas.

-Adoption of an Open Skies Policy.

-Modification of the Civil and Commercial Code to ensure that contracts in foreign currency must be settled in the same currency.

-Modification of the regulatory framework for Prepaid Medicine and Social Works, potentially allowing for an increase in monthly fees without requiring approval from the Ministry of Health.

-Incorporation of Prepaid Medicine companies into the Social Work regime, enabling them to cater to both markets and allowing for flexibility in employer contributions to any chosen provider.

-Reinstatement of Electronic Prescriptions.

-Modifications to the regime of pharmaceutical companies to stimulate competition.

-Amendment of corporate law to facilitate the transformation of Soccer Clubs into public limited companies.

-Deregulation of satellite internet services, facilitating the operation of companies like Starlink.

-Deregulation of the tourism sector.

-Digitization of DMV procedures.

Wow! Thanks. Great update! Much needed changes! This is going to feel like a whole new Argentina. I'm sure all of these things will cause more pain first which is natural after revolutionary changes. To fix a broken country you have to do a LOT of changes and these look like the changes Argentina needs.

I'm seeing more interest finally in Argentina from other countries. It will get worse before it gets better but these were much needed!

 

[Hornie Todongs]

Thank you @Billy Goat! You the GOAT! Ha.

Seriously though if anyone wants to dumpster dive into the details you can see the full Document here:

DNU 70-2023

República Argentina - Poder Ejecutivo Nacional 1983/2023 - 40 AÑOS DE DEMOCRACIA Decreto de Necesidad y Urgencia Número: Referencia: Decreto de Necesidad y Urgencia – Bases para la Reconstrucción de la Economía Argentina VISTO y CONSIDERANDO: Que la REPÚBLICA ARGENTINA se encuentra atrav...

docs.google.com

 

[Bobbie Burgers]

I have a friend's brother's cousin's neighbor's uncle that is coming from the USA and buying up lots of productive farm land in Argentina after Milei's DNU repealed the rule that restricts the sale of files to foreigners.

It's going to be awesome to have American farmer neighbors now! Like, capitalism without any rules has totally been a huge hit worldwide for things like hospitals, public transport, infrastructure, water, electricity, and gas. I totally think Argentina is gonna rock it too!

Ley de Tierras: el DNU de Milei derogó la norma que restringe la venta de campos a extranjeros

La normativa vigente establece que los no residentes sólo pueden adquirir hasta el 15% de los terrenos productivos y hasta un máximo de 1.000 hectáreas por persona u empresa

www.infobae.com

 

[Avocado]

Wow! Thanks. Great update! Much needed changes! This is going to feel like a whole new Argentina. I'm sure all of these things will cause more pain first which is natural after revolutionary changes. To fix a broken country you have to do a LOT of changes and these look like the changes Argentina needs.

I'm seeing more interest finally in Argentina from other countries. It will get worse before it gets better but these were much needed!

You expats won't have fun watching "Rome burn down". You get to watch a history lesson in real time watching Milei destroy a wonderful country. Sure Argentina had its problems but we got by and people still could go to their jobs and have food on the table. You will see that change soon.

 

[Betsy Ross]

You expats won't have fun watching "Rome burn down". You get to watch a history lesson in real time watching Milei destroy a wonderful country. Sure Argentina had its problems but we got by and people still could go to their jobs and have food on the table. You will see that change soon.

Where were you when "Rome was burning" the past several years. This fire has been going on for quite some time. People have been hungry and have had no money for quite a while now. This isn't anything new. Do you think this "fire" would be out if Massa was President now? @Avocado you seem like an intelligent woman but you are digging your head in the sand. These problems in Argentina are painful and what Milei is trying to do is put the fire out for good. It will take more than a few days and it WILL get painful. Much more painful.

 

[Bill]

You expats won't have fun watching "Rome burn down". You get to watch a history lesson in real time watching Milei destroy a wonderful country. Sure Argentina had its problems but we got by and people still could go to their jobs and have food on the table. You will see that change soon.

This country has been on a downward death spiral since Peron took over.

Argentina's Century-Long Decline

How and why Argentina went from being one of the richest countries to where we are now (and how stats do not always tell the whole story).

www.bowtiedmara.io

Lots of people are going to actually work for a living now. Milei is getting rid of a lot of fake employees and people that got a salary but never had to go anywhere. I know a few people like this. One of my 3rd wife's ex-husband had a job with the State and he didn't go in for 8 years and collected a full salary. He worked for a union I believe in the trucking industry. Some of these unions are like the Mafia. Sure they aren't going to be thrilled about actually having to find a real job. So be it!

 

[StatusNomadicus]

buying up lots of productive farm land

bobbie boy, i just found @BowTiedMara's posts on this, and i'm reading them meow!

1. https://www.bowtiedmara.io/p/farmla...ntina?r=n12x&utm_medium=ios&utm_campaign=post

2. https://www.bowtiedmara.io/p/buying-property-in-argentina-part-e23

this is my dream, to have some land for horses and crops and fruit trees/permaculture, with aquaponics and solar off-the-grid. does your friend's-dog's-cousin's-llama's-mama have any sites or ways i can read about it, or network with them?

 

[Aussieland]

bobbie boy, i just found @BowTiedMara's posts on this, and i'm reading them meow!

1. https://www.bowtiedmara.io/p/farmla...ntina?r=n12x&utm_medium=ios&utm_campaign=post

2. https://www.bowtiedmara.io/p/buying-property-in-argentina-part-e23

this is my dream, to have some land for horses and crops and fruit trees/permaculture, with aquaponics and solar off-the-grid. does your friend's-dog's-cousin's-llama's-mama have any sites or ways i can read about it, or network with them?

I like @bowtiedmara's content. He seems to know Argentina well. @earlyretirement commented in a post how he had dinner with him a few weeks ago and liked him. He has some of the best content on Tik Tok.

 

[Vince]

I put that

Thank you @Billy Goat! You the GOAT! Ha.

Seriously though if anyone wants to dumpster dive into the details you can see the full Document here:

DNU 70-2023

República Argentina - Poder Ejecutivo Nacional 1983/2023 - 40 AÑOS DE DEMOCRACIA Decreto de Necesidad y Urgencia Número: Referencia: Decreto de Necesidad y Urgencia – Bases para la Reconstrucción de la Economía Argentina VISTO y CONSIDERANDO: Que la REPÚBLICA ARGENTINA se encuentra atrav...

docs.google.com

I read this with Google Chrome and translated to English. I read as part of this decree, the rental law will be repealed tomorrow. So no more of that crazy Rental Law in pesos and locked in for 3 years. Does this mean more long term rentals will be available now? What exactly happens now that it's repealed? What does this really mean?

 

[Wally]

I put that

I read this with Google Chrome and translated to English. I read as part of this decree, the rental law will be repealed tomorrow. So no more of that crazy Rental Law in pesos and locked in for 3 years. Does this mean more long term rentals will be available now? What exactly happens now that it's repealed? What does this really mean?

I did the same thing with translating it. I can't believe how quickly Milei and team are tackling things. Amazing. I would think this would help with the issue of owners not wanting to rent out their units and rather keep them empty. I read yesterday there are 250,000+ empty apartments. Almost everything in Argentina is just short-term airbnb type rentals. There isn't any sort of legal guarantee for tenants to stay there like a regular long term contract. The old rental law made it illegal to do a contract in any currency except Argentine pesos which NO owners wanted to do as it's a dogshit currency. Because of that the entire market disappeared. Milei seems to be saying owners can price in whatever the hell they want.

I would think once owners realize they can legally charge USD they will start renting again. The question is will the locals have USD to pay?

 

[RN in BA]

I did the same thing with translating it. I can't believe how quickly Milei and team are tackling things. Amazing. I would think this would help with the issue of owners not wanting to rent out their units and rather keep them empty. I read yesterday there are 250,000+ empty apartments. Almost everything in Argentina is just short-term airbnb type rentals. There isn't any sort of legal guarantee for tenants to stay there like a regular long term contract. The old rental law made it illegal to do a contract in any currency except Argentine pesos which NO owners wanted to do as it's a dogshit currency. Because of that the entire market disappeared. Milei seems to be saying owners can price in whatever the hell they want.

I would think once owners realize they can legally charge USD they will start renting again. The question is will the locals have USD to pay?

So does this mean the rental contracts can be in US dollars legally? It seems like almost all were anyway. I haven't come across ANY rentals in pesos at all. Even on my Airbnb when I book direct they don't want pesos at the blue rate. They want me to buy US dollars and pay them in US dollars. A big pain and adds on extra fees.

 

[Under the Radar]

So does this mean the rental contracts can be in US dollars legally? It seems like almost all were anyway. I haven't come across ANY rentals in pesos at all. Even on my Airbnb when I book direct they don't want pesos at the blue rate. They want me to buy US dollars and pay them in US dollars. A big pain and adds on extra fees.

The crux of the matter lies in the agreement of parties to a contract or transaction denominated in dollars. In such instances, the obligation to fulfill the contractual obligation resides in dollars rather than the local currency. To illustrate, in the event of a dispute arising from a contract denominated in dollars that escalates to legal proceedings or debt collection, the courts would be compelled to "pesofy" the debt or amount in question, inevitably disadvantaging the seller.

Moreover, parties now possess the liberty to stipulate rental contracts in any currency of their choosing, with variable amounts, durations, and adjustments. Once a contract is executed, it attains full validity and enforceability as per the mutually agreed terms between the contracting parties. Essentially, this legal framework formalizes prevailing practices in the informal rental market, mitigating legal vulnerabilities encountered by owners engaged in informal rental arrangements and concurrently reducing economic risks for formally established lessors.

Ideally, this legislative development is anticipated to catalyze a downward trend in rental prices, a consequence of alleviating risks for property owners and fostering an expanded supply landscape.