The president recently announced on LN+ channel that Argentina is taking a significant step towards zero emissions after achieving zero fiscal deficit. This decision, which was made in the early hours of Friday, included legislative powers for Javier Milei, incentives for large investments, relaxation of labor laws, and authorization for privatization of public companies. This marks the first political victory for Milei’s government despite only holding approximately 10% of the seats in Parliament.
According to international analyst Jorge Negri, this outcome signifies a significant shift in the government’s approach towards a free and prosperous country. The approval of the Base Law package represents a move towards a more open and competitive economy. The change in monetary regime, highlighted by Milei, signifies a new direction for Argentina’s economy which has been plagued by recession, high inflation, and widespread poverty.
The Base Law package contains 238 articles and proposes several reforms in different areas of the Executive. Incentives for investments, tax reductions, and privatization of state companies are among the changes proposed. The creation of a new ministry aimed at accelerating and implementing reforms is also part of the government’s plans. Federico Sturzenegger, a former president of the Central Bank of Argentina will lead this office and oversee the economic reform package.
While details of the new monetary regime are yet to be clarified experts believe it will involve flexibilization of capital flows and potential removal of multiple exchange rates. The government’s focus on currency competition and deregulation signals a shift towards a more open and competitive economy. Additionally, the government will be tasked with promulgation regulation and implementation of the Base Law marking a new phase in Argentina’s economic policy.
This move represents an important milestone in Milei’s government’s efforts to transform Argentina into an attractive destination for investment while addressing longstanding issues like poverty and inequality.
