Decided on maximising austerity as much as possible, President Javier Milei has ordered a review of provincial debts to the national government. On this basis, he is seeking to collect as soon as possible or to start cutting back on the outlay of federal revenue-sharing funds, thus leading to a point of no return where each governor has to look for a solution individually.
The national government’s strategy is clear although the results still remain to be seen.
In the course of this week the conflict which seemed limited to Chubut has escalated to other jurisdictions. Milei’s advance against the province governed by PRO’s Ignacio Torres has stirred things up among the governors – now they consider that in this confrontation there are no longer enemies or allies among them.
"We’re all left dizzy by decisions which could bankrupt many. If from one day to the next they slash 15 billion (pesos) like they did to Chubut or 40 billion as they did to Buenos Aires Province, we’ve no idea whose turn it might be tomorrow," analysed a northern Peronist governor in dialogue with Perfil, adding: "We’re at the mercy of a decree whether or not we can pay salaries this week."
10 provinces with biggest debts
According to the Monday edition of La Nación newspaper, the government is taking aim at 10 other provinces with similar debts totalling 392.104 billion pesos. Of that total, Chubut owes 119 billion, Tucumán 72 billion, Chaco 63 billion and Salta 55 billion.
The provinces of Santa Cruz, Formosa, Entre Ríos and Catamarca, governed by different parties, follow on that list with debts of 11-22 billion pesos while Tierra del Fuego, Misiones and Jujuy have 11-digit liabilities.
Buenos Aires Province Governor Axel Kicillof gave a press conference on Monday to explain his legal strategy to halt the cuts ordered by the DNU emergency decree signed by Economy Minister Luis Caputo, among others. On Tuesday morning Tierra del Fuego Governor Gustavo Melella anticipated that he would interrupt oil production “for a day.”
“We’ll be paralysing oil production for a day. What we’re asking of the national government is to sit down urgently with the governor of Chubut to try and resolve the situation,” explained Melella to the Télam state news agency.
Dispute moves to Congress
In the midst of this tussle the southern governors went to the Senate on Tuesday afternoon in search of opposition support for "revenge" since the emergency decrees published by the national government may be halted in Congress.
"A week ago I would have told you what was going to happen but today, Tuesday, I cannot. Ask me again on Thursday," was the response of a key Radical senator.
On February 23 the Bicameral Commission for Processing Legislation was formed to deal with this issue. Senate head Victoria Villarruel was requested to call the session by legislators as far removed from Kirchnerism as Carlos Mauricio Espínola (Corrientes), Edgardo Kueider (Entre Ríos), Carlos Arce (Misiones), Sonia Rojas Decut (Misiones), Mónica Silva (Río Negro), José María Carambia (Santa Cruz), Natalia Gadano (Santa Cruz), Daniel Blanco (Tierra del Fuego) and Alejandra Vigo (Córdoba).
"We are not going to negotiate with those responsible for the imbalances. Everybody wants ordered accounts but nobody wants to pay the cost. Now they’ll have to show their faces," summed up a Casa Rosada official who is aware of the collapse of negotiations.
Comments