Tuesday, April 16, 2024

ARGENTINA | 14-03-2024 16:54

Milei government circulates new text of omnibus bill to governors

Government circulates new text of sweeping reform bill – now slashed by half to 269 articles – to provincial leaders in bid to win support before it heads to Congress.

After the failure of the original bill in the Chamber of Deputies and progressing in talks with governors, the Government has started handing out the new text of the Omnibus Law, which will be introduced in Congress in the next few days.

As had already been disclosed, it is a new, shorter version of the initiative: it has 269 articles, unlike the 664 of the original text.

The draft has already been sent to governors, after the perfect attendance achieved in the meeting at Casa Rosada last Friday.

The first few articles establish the declaration of a “public emergency in administrative, economic, financial and energy mattters for one year”, during which President Milei would have special powers.

The package of private companies to be privatised includes Aerolíneas Argentinas, Energía Argentina (Enarsa) and Radio y Televisión Argentina, whereas AySA, Correo Oficial, Belgrano Cargas, SOFSE (the operator of metropolitan trains), Corredores Viales and Yacimientos Carboníferos de Río Turbio are catalogued within the “privatisation/concession” option.

On the other hand, Nucleoeléctrica Argentina, Banco Nación and all companies in the Grupo Nación and Empresa Argentina de Soluciones Satelitales (ArSat) “may only be privatised partly, and the State shall keep its majority interest in the capital or corporate decision-making”.

At this point, the Government underlines that the privatisation process “must be developed in accordance with the principles of transparency, competition, maximum competitiveness, open government, maximum publicity and dissemination”.

There are several changes introduced by the Employment Contract Law, such as establishing the mandatory nature of the “discount of the proportional portion of pension contributions for the days when the employee has chosen to exercise their right to strike”, something which will worsen the conflict with unions. 

Separately, the Casa Rosada sent to governos the “Fiscal Measures Bill” with the creation of the Exceptional Tax, Customs and Social Security Obligation Regularisation Regime; the Asset Regularisation Regime; the modification of the Personal Assets Tax and Internal Taxes.

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