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What Cristina Kirchner said about the DNU and the Omnibus Law: the main definitions - infobae
Source:
www.infobae.com
February 14, 2024
The former president considered that both instruments, promoted by the Government of Javier Milei, constitute "a package of modifications to the Argentine legal system tailored to the main business groups." In addition, she pointed out against the economic plan of the head of state
Cristina Kirchner published an extensive document this Wednesday.
Through an extensive 36-page document published this Wednesday on her social networks, former President Cristina Kirchner referred for the first time since the change of Government to Javier Milei, whom she classified as “ a showman-economist .”
In the text, and after taking a historical tour of what the former president calls the debt crisis cycles that the country experienced, she dedicated a special section to DNU 70/2023 and the omnibus bill , which she named as instruments “which constitute a package of modifications to the Argentine legal system tailored to the main business groups” and which represent “a covert reform of the National Constitution.” In addition, she criticized dollarization and its consequences for Argentina.
In this context, Kirchner mentioned the Minister of Economy, Luis Caputo, and the presidential advisor Federico Sturzenegger , both former officials of the administration of former president Mauricio Macri, and their participation in the measures promoted by the Milei government: “The most relevant thing about The new President is that, despite having maintained as a hobbyhorse that with the “same old ones” different results could not be obtained, he produced, as soon as he was elected, an unusual recycling of characters and former officials .
“The most worrying is that of Luis Caputo, architect of the serial indebtedness of Mauricio Macri's government and the return of the IMF to Argentina, whom he appoints, nothing more and nothing less, than as Minister of Economy. Added to this is the reappearance as a star figure of Federico Sturzenegger, former president of the BCRA during the Macri government and protagonist of the “mega swap” of the foreign debt together with Domingo Cavallo in the De La Rúa government,” wrote the former head of State.
However, the representative of the Patria Institute dedicated a special paragraph to Sturzenegger: “Without having been designated as an official, he turns out to be the compiler of DNU 70/2023 and the Omnibus Law project. “Both instruments constitute a package of modifications to the Argentine legal system tailored to the main business groups and, what is even more serious, a covert reform of the National Constitution.”
“The President has the right to seek to reform the Constitution, but he cannot do so through a DNU or a law, but through the reform mechanism provided for in the National Constitution itself. It is still striking that the President wants to annul the reform that his much admired president (Carlos) Menem promoted in 1994,” Kirchner completed in the document.
Javier Milei and Federico Sturzenegger
The “ working document ” establishes three moments of the debt crisis in Argentina: the first, between 1976 and 1989; the second, between the inauguration of Carlos Menem until 2001; and the third, still in process, according to the former vice president, began in 2016, at which time she began “the third neoliberal experience in our country with external debt.” However, after these definitions, the former president considered it imprecise to describe the La Libertad Avanza government “as the fourth experience” of this type: “The characteristics of the speech and political praxis of the new president, such as that of his teams in the different areas, place the government on a plane that goes beyond the disruptive and take it to a place that Argentina has never known. This is also taking place in an extremely serious economic and social framework.”
For Kirchner, "so far, the new government has only deployed a fierce adjustment program that acts as a true destabilization plan and that not only feeds back the inflationary spiral, placing society on the brink of shock, but will also irremediably cause the increase in unemployment and social desperation in a kind of planned chaos. It is more than evident that in the President's head the only stabilization plan is dollarization. The measures adopted in another theoretical framework are not explained.”
Likewise, in the text, the former head of state maintained that "Milei's master plan does not differ much from that carried out by the civil-military dictatorship in terms of the indiscriminate opening of the economy and de facto labor deregulation, nor from the of the privatizations of the '90s.
In this context, he compared the aforementioned economic plans and described: “If the dictatorship's plan was for indiscriminate opening and Menem's for privatization of public companies, Milei's adds the foreignization of land and natural resources through of two figures: the Large Investment Incentive Regime (RIGI) contemplated in the “Omnibus” bill and the repeal of the Land Law imposed by DNU 70/2023.
“ If DNU 70/2023 remains in force and if the RIGI included in the “Omnibus” bill is approved, Argentina would enter helplessly into a process of irreversible foreignization in a 21st century that will be characterized by the dispute over ownership over the land, water and natural resources ,” he added.
“When in the electoral campaign it was suggested to him that he did not have enough dollars for it, he answered that he was going to obtain financing from the Investment Funds. Milei became president but the financing did not appear. The one who did appear as his Minister of Economy was the 'Messi' of finance, Luis Caputo, a serial debtor in the government of Mauricio Macri and together with him, in the Omnibus Law Project, three fundamental reforms," he expressed.
According to Kirchner, these reforms open the door to excessive and unlimited indebtedness by the National Executive Branch, allowing the restructuring of the external debt without the obligation to improve conditions for the country. In addition, he denounced the possibility of liquidating the ANSES Guarantee and Sustainability Fund and privatizing State assets, all without the effective control of Congress.
In relation to Milei's counterproposal, Kirchner warned about its risks, arguing that dollarization and the increase in sovereign debt in foreign currency would lead to an irreversible deterioration of the national economy, affecting key sectors such as agriculture and automobiles. “If these reforms are approved, more than a legal authorization, Congress would be granting a patent of marque to the President and his Minister of Economy,” he said.
“Meanwhile, Milei also deploys another alternative to dollarize. It is liquefying the remunerated liabilities of the BCRA and the Monetary Base via inflation and hopes that the brutal recession it is causing will interrupt the inflationary inertia and even allow it to carry out a new devaluation prior to the harvest without the pass through prices being equivalent in terms percentages; Just as it happened in 2002 when the fall of convertibility meant a devaluation of more than 300% and inflation was only 41% annually, given the context of recession and fall in the level of employment that led to unemployment the following year. of 25%. This would allow him to rescue the entire Monetary Base that is increasingly liquefied with the dollars from the harvest that will enter from the month of March and, if he has not yet obtained enough dollars with the powers that Congress would grant him if the law were approved 'Omnibus', the President, despite saying that he would never affect private property, could issue a bond in dollars on the remunerated liabilities of the BCRA, also increasingly liquefied, thus giving rise to a third appropriation of Argentines' savings as the outcome. of this third debt crisis. It is not idle to point out that for the first time in history the BCRA delivered bonds - Bopreal - in a currency that it does not issue - dollars - for the debt in pesos with importers,” the former president defined in another paragraph.
Finally, he wrote: “The dollarization of the Argentine economy will imply the definitive closure of the possibility of developing our country with social inclusion. The country is not going to have more dollars. On the contrary, we are going to have fewer dollars because we are going to affect the competitiveness of most of the productive sectors that generate foreign currency.”
Source:
Qué dijo Cristina Kirchner sobre el DNU y la Ley Ómnibus: las principales definiciones
La expresidenta consideró que ambos instrumentos, impulsados por el Gobierno de Javier Milei, constituyen “un paquete de modificaciones del sistema legal argentino a medida de los principales grupos empresarios”. Además, apuntó contra el plan económico del jefe de Estado
www.infobae.com
February 14, 2024
The former president considered that both instruments, promoted by the Government of Javier Milei, constitute "a package of modifications to the Argentine legal system tailored to the main business groups." In addition, she pointed out against the economic plan of the head of state
Cristina Kirchner published an extensive document this Wednesday.
Through an extensive 36-page document published this Wednesday on her social networks, former President Cristina Kirchner referred for the first time since the change of Government to Javier Milei, whom she classified as “ a showman-economist .”
In the text, and after taking a historical tour of what the former president calls the debt crisis cycles that the country experienced, she dedicated a special section to DNU 70/2023 and the omnibus bill , which she named as instruments “which constitute a package of modifications to the Argentine legal system tailored to the main business groups” and which represent “a covert reform of the National Constitution.” In addition, she criticized dollarization and its consequences for Argentina.
In this context, Kirchner mentioned the Minister of Economy, Luis Caputo, and the presidential advisor Federico Sturzenegger , both former officials of the administration of former president Mauricio Macri, and their participation in the measures promoted by the Milei government: “The most relevant thing about The new President is that, despite having maintained as a hobbyhorse that with the “same old ones” different results could not be obtained, he produced, as soon as he was elected, an unusual recycling of characters and former officials .
“The most worrying is that of Luis Caputo, architect of the serial indebtedness of Mauricio Macri's government and the return of the IMF to Argentina, whom he appoints, nothing more and nothing less, than as Minister of Economy. Added to this is the reappearance as a star figure of Federico Sturzenegger, former president of the BCRA during the Macri government and protagonist of the “mega swap” of the foreign debt together with Domingo Cavallo in the De La Rúa government,” wrote the former head of State.
However, the representative of the Patria Institute dedicated a special paragraph to Sturzenegger: “Without having been designated as an official, he turns out to be the compiler of DNU 70/2023 and the Omnibus Law project. “Both instruments constitute a package of modifications to the Argentine legal system tailored to the main business groups and, what is even more serious, a covert reform of the National Constitution.”
“The President has the right to seek to reform the Constitution, but he cannot do so through a DNU or a law, but through the reform mechanism provided for in the National Constitution itself. It is still striking that the President wants to annul the reform that his much admired president (Carlos) Menem promoted in 1994,” Kirchner completed in the document.
Javier Milei and Federico Sturzenegger
The “ working document ” establishes three moments of the debt crisis in Argentina: the first, between 1976 and 1989; the second, between the inauguration of Carlos Menem until 2001; and the third, still in process, according to the former vice president, began in 2016, at which time she began “the third neoliberal experience in our country with external debt.” However, after these definitions, the former president considered it imprecise to describe the La Libertad Avanza government “as the fourth experience” of this type: “The characteristics of the speech and political praxis of the new president, such as that of his teams in the different areas, place the government on a plane that goes beyond the disruptive and take it to a place that Argentina has never known. This is also taking place in an extremely serious economic and social framework.”
For Kirchner, "so far, the new government has only deployed a fierce adjustment program that acts as a true destabilization plan and that not only feeds back the inflationary spiral, placing society on the brink of shock, but will also irremediably cause the increase in unemployment and social desperation in a kind of planned chaos. It is more than evident that in the President's head the only stabilization plan is dollarization. The measures adopted in another theoretical framework are not explained.”
Likewise, in the text, the former head of state maintained that "Milei's master plan does not differ much from that carried out by the civil-military dictatorship in terms of the indiscriminate opening of the economy and de facto labor deregulation, nor from the of the privatizations of the '90s.
In this context, he compared the aforementioned economic plans and described: “If the dictatorship's plan was for indiscriminate opening and Menem's for privatization of public companies, Milei's adds the foreignization of land and natural resources through of two figures: the Large Investment Incentive Regime (RIGI) contemplated in the “Omnibus” bill and the repeal of the Land Law imposed by DNU 70/2023.
“ If DNU 70/2023 remains in force and if the RIGI included in the “Omnibus” bill is approved, Argentina would enter helplessly into a process of irreversible foreignization in a 21st century that will be characterized by the dispute over ownership over the land, water and natural resources ,” he added.
Kirchner pointed out against dollarization
The former president attacked the dollarization proposal promoted by Milei, which she described as “her true stabilization plan.” In the document, Kirchner denounced the consequences that this measure would have for the Argentine economy, pointing out the alleged shortcomings and risks that it would imply.“When in the electoral campaign it was suggested to him that he did not have enough dollars for it, he answered that he was going to obtain financing from the Investment Funds. Milei became president but the financing did not appear. The one who did appear as his Minister of Economy was the 'Messi' of finance, Luis Caputo, a serial debtor in the government of Mauricio Macri and together with him, in the Omnibus Law Project, three fundamental reforms," he expressed.
According to Kirchner, these reforms open the door to excessive and unlimited indebtedness by the National Executive Branch, allowing the restructuring of the external debt without the obligation to improve conditions for the country. In addition, he denounced the possibility of liquidating the ANSES Guarantee and Sustainability Fund and privatizing State assets, all without the effective control of Congress.
In relation to Milei's counterproposal, Kirchner warned about its risks, arguing that dollarization and the increase in sovereign debt in foreign currency would lead to an irreversible deterioration of the national economy, affecting key sectors such as agriculture and automobiles. “If these reforms are approved, more than a legal authorization, Congress would be granting a patent of marque to the President and his Minister of Economy,” he said.
“Meanwhile, Milei also deploys another alternative to dollarize. It is liquefying the remunerated liabilities of the BCRA and the Monetary Base via inflation and hopes that the brutal recession it is causing will interrupt the inflationary inertia and even allow it to carry out a new devaluation prior to the harvest without the pass through prices being equivalent in terms percentages; Just as it happened in 2002 when the fall of convertibility meant a devaluation of more than 300% and inflation was only 41% annually, given the context of recession and fall in the level of employment that led to unemployment the following year. of 25%. This would allow him to rescue the entire Monetary Base that is increasingly liquefied with the dollars from the harvest that will enter from the month of March and, if he has not yet obtained enough dollars with the powers that Congress would grant him if the law were approved 'Omnibus', the President, despite saying that he would never affect private property, could issue a bond in dollars on the remunerated liabilities of the BCRA, also increasingly liquefied, thus giving rise to a third appropriation of Argentines' savings as the outcome. of this third debt crisis. It is not idle to point out that for the first time in history the BCRA delivered bonds - Bopreal - in a currency that it does not issue - dollars - for the debt in pesos with importers,” the former president defined in another paragraph.
Finally, he wrote: “The dollarization of the Argentine economy will imply the definitive closure of the possibility of developing our country with social inclusion. The country is not going to have more dollars. On the contrary, we are going to have fewer dollars because we are going to affect the competitiveness of most of the productive sectors that generate foreign currency.”
