State restructuring project
Milei pushes a legislative package through parliament
February 3, 2024, 3:55 a.m
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Argentina’s new President Javier Milei wants to radically slim down the state. This causes protests on the streets, and the ultra-liberals have to negotiate hard in parliament. But now his legislative package clears an important hurdle.
After a three-day marathon session and around 30 hours of debate, the Argentine Chamber of Deputies approved in principle an extensive legislative package from the ultra-liberal government of President Javier Milei. 144 parliamentarians voted for the initiative, 109 against. The package with around 300 laws provides, among other things, for the transfer of part of the legislative powers to the government for two years, the privatization of numerous state-owned companies and changes to tax and electoral law.
After the package has been approved in principle, the debate on the individual laws will begin next week. The Senate also still has to approve the project. On the sidelines of the parliamentary debate, there have been protests and clashes between demonstrators and the police in recent days.
Success for Milei
The vote is already a success for Milei, who does not have his own majority in Congress. He has had to negotiate hard in recent weeks to get MPs from other parties on board for his project. “History will remember with respect those who understood the historical context and decided to end the privileges of caste and do something for the people who were plunged into poverty and hunger by the political class for years,” said a statement from the presidential office.
After taking office in December, the economist Milei prescribed a radical treatment for the country, which had been badly hit economically. He wants to cut numerous subsidies, introduce the US dollar and abolish the central bank. Argentina is in a serious economic crisis. The inflation rate is over 200 percent, and around 40 percent of people in the once wealthy country live below the poverty line.
South America’s second largest economy suffers from a bloated state apparatus, low industrial productivity and a large shadow economy that deprives the state of a lot of tax revenue. The national currency, the peso, continues to lose value against the US dollar and the mountain of debt is constantly growing.