President Javier Milei’s new sweeping ‘Ley Omnibus’ bill has been sent to Congress – but what’s in it?
The lengthy bill, which spans 351 pages, contains 664 articles which propose additional state reforms and further economic deregulation than established in the president’s recent Decree of Urgency and Necessity.
In addition to laying the ground for privatisations, it features a two-year emergency declaration granting the president extra powers and economic, tax and contractual changes, among other topics.
The bill will be dealt with during special sessions of Congress called by Milei last week, which began on December 26 and run until January 31. The president’s La Libertad Avanza party intends to take it to the Chamber of Deputies for a vote on January 25, according to government sources,
The bill is called the "Ley de Bases y Puntos de Partida para La Libertad de los Argentinos" (“Law of Bases and Starting Points for the Liberty of Argentines”) and was delivered to Congress on Wednesday by Interior minister, Guillermo Francos, who handed it over to the president of the lower house Chamber of Deputies, Martín Menem.
What’s in Milei’s mega-bill?
The text proposes sweeping electoral reform, tax changes, a ‘blanqueo’ tax whitewash and harsher limits on protests and demonstrations. These issues were not part of Milei’s urgent decree as the topics they touch must go through Congress.
The initial point of the long text declares a “public emergency in economic, financial, fiscal, social security, security, defence, tariff, energy, health, administrative and social matters until December 31, 2025,” which may be extended unilaterally “by the Executive Branch for up to two years.”
“It shall be delegated to the Executive Branch the powers listed herein and as per Article 76 of the Constitution. The regulations issued while exercising this delegation shall be permanent, except when the nature of the measure determines their temporary nature, which must be expressly stated,” the bill reads.
That means, if the emergency declaration is approved, Milei would have the power to legislate, something expressly prohibited by the Constitution under Section 76, which reads: “The legislative powers shall not be delegated to the Executive Branch save for issues concerning administration and public emergency, with a specified term for their exercise and according to the delegating conditions established by Congress.”
The text sent to the lower house Chamber of Deputies on Wednesday also calls for the repeal of the PASO primaries and the implementation of a single paper ballot. The transfer of National Courts to Buenos Aires City is also sought, declaring a public emergency until December 31, 2025 and enabling the Executive Branch to privatise state-run companies.
It also modifies the make-up Anti-Corruption Office, the composition of the Chamber of Deputies and introduces changes to the financing of political parties.
“In the spirit of restoring economic and social order based on the liberal doctrine reflected in the 1853 Constitution, we hereby present to the Honourable Congress the bill attached hereto and state our firm willingness to begin, with immediate effect and the proper instruments, the fight against the adverse factors attacking Argentines’ freedom; preventing the correct operation of the market economy and causing the impoverishment of the Nation,” read a message on the X social network posted from the President’s Office.
In that vein, it continues: “We promote these reforms on behalf of the 1810 May Revolution and in defence of the life, liberty and property of Argentines.”
In the first article of his omnibus bill, Milei’s establishes that its purpose is “to promote private initiative, as well as the development of industry and trade, by means of a legal system which ensures the benefits of freedom for all inhabitants of the Nation and limits any unnecessary state intervention to protect constitutional rights.”
The bill amends a score of laws and among them it proposes the suspension of the pension mobility approved in 2020, thus empowering the Executive Branch to establish an automatic adjustment to services “taking into account the criteria of equity and economic sustainability.”
Key points
Key points of the mega-bill containing 664 articles:
– Declaration of Public Emergency. Article 3: “A public emergency in economic, financial, fiscal, social security, security, defence, tariff, energy, health, administrative and social matters is hereby declared until December 31, 2025.” It also delegates to the Executive Branch the legislative powers prescribed under Section 76 of the Constitution.
– Privatisation of Public Companies: Aerolíneas Argentinas, YPF, Correo Argentino and AySA are some of the 41 state-run companies the Executive Branch plans to sell-off into private hands.
– Mobility of Services. Article 106: “The application of Article 32 of Law 24,241, as amended, is hereby suspended. The Executive Branch has the power to establish an automatic formula to adjust the services listed in Article 17 a), b), c), d), e) and f) of Law 24,241, taking into account the criteria of equity and economic sustainability … Until an automatic formula is established, the Executive Branch may make periodic adjustments that prioritise lower-income beneficiaries.”
– Asset Regularisation Regime. Article 130: “residents and non-residents alike may adhere hereto.” This essentially means a ‘blanqueo,’ or capital whitewashing for Argentine citizens, whether or not they reside in the country.
– Personal Property Tax. Article 166: “The Special Income System for the Personal Property Tax is hereby created for all tax periods up to its expiration date, i.e. December 31, 2027. ARTICLE 167. Scope. Individuals and undivided estates with tax residence in Argentina in the terms of articles 116 to 123 of the Income Tax Act, as ordered in 2019 and amended, may choose to adhere to the Special Income System”.
– PASO primaries. Article 451: repeal of the PASO primaries.
– Ratification of Urgent Decree 70/23: this is the controversial Urgent Decree announced by President Milei last week.
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