What is Javier Milei’s ‘Bases Law’: there will be four big changes in Argentina

The one known as ‘Bases law’ It was approved this Thursday in the Argentine Senate after a tie with 36 votes against and 36 in favor, which was broken by Vice President Victoria Villarruel and her vote in favor of the measure.

This initiative takes almost half a year of complex parliamentary process and, in total, added 29 modifications. With several twists and turns, the initiative was approved in the Chamber of Deputies at the end of April, with 142 affirmative votes, 106 against and 5 abstentions.

Now it will have to return to the Lower House for approval, since the senators introduced some changes, but it is assumed that Congress will turn it into law.

Controversial measures linked to privatization

The Law Bases and Starting Points for the Freedom of Argentines is a reduced version of the so-called “omnibus law” that the Milei government presented to Congress at the beginning of the year.

The initiative allows the reform of the State, enables privatize several companies, involves changes in the Labor legislation and retirement and includes incentives for the energy and hydrocarbon sector and for large investments.

  • delegated powers: The ‘Bases Law’ declares a public emergency in administrative, economic, financial and energy matters for a period of one year, giving the Executive delegated powers in those matters. This will allow Milei to have, until mid-2025, powers that normally correspond to the Legislative Branch.
  • He Large Investment Incentive Regime: The RIGI provides tax, customs and exchange benefits for 30 years, in addition to regulatory stability and protection against State abuses, for projects that exceed US$200 million, in order to encourage large investments, both national and foreign, in the long term. term. It is aimed at sectors considered strategic for the development of the country, such as energyagriculture, mining (including lithium extraction) and infrastructure.
  • Privatization of several companies: Of the nearly 40 companies that were “subject to privatization” in the initial proposal, only two, Intercargo, which provides airport services to airlines, and Energía Argentina SA (Enarsa), in charge of the exploration and exploitation of Hydrocarbon deposits and fuel transportation and storage may be privatized.

  • Labour reform: The standard offers benefits for employers who regularize their workers but, at the same time, eliminates sanctions against “informal” work, removing the special compensation that employees who are not correctly registered today receive. According to the government, this flexibility will lead more companies to hire staff, since, currently, many entrepreneurs are afraid of taking on new employees due to the possibility of facing a labor lawsuit that can lead an SME to bankruptcy.

The legislative package is strongly rejected by some sectors of the political opposition, the union movement and social organizations, which this Wednesday mobilized to Congress, in whose surroundings several violent episodes were recorded due to clashes between protesters who tore down fences and threw stones and sticks at the security forces, and they responded with tear gas and water cannons.

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