Just days after taking office, and on the eve of a public holiday, Milais introduced a DNU (‘necessary and urgent’) decree to ease some of the rules governing the country’s economy as annual inflation reached 160%. .
In midweek, Argentina’s far-right liberal president Javier Millay announced the country’s first major decree changing or completely abolishing 366 economic regulations.
No previous leader, including democratically elected presidents and dictators, has attempted to dismantle the system on such a large scale.
It’s also what Mr. Millay promised during his campaign, brandishing a live chainsaw, to symbolize his efforts to cut public spending and address Argentina’s triple-digit inflation after decades of fiscal mismanagement. It is also the fact itself.
Under Argentine law, Congress still has the power to abolish Millay’s program, but many are concerned that his decision to deregulate it will make matters worse in the South American country of 45.8 million people. people are concerned.
What does Millais’s edict seek to change?
10 days after taking office, on the eve of the holidays, Millay With annual inflation reaching 160%, it introduced a DNU (‘necessary and urgent’) decree to ease some of the rules governing the country’s economy.
One big change would be the removal of all rules between tenants and landlords, including laws that cap rent increases.
In recent years, landlords have increasingly priced their properties in U.S. dollars to avoid soaring inflation that would leave them unable to keep up with rental income. This is a nightmare for renters in countries where access to dollars is tightly controlled. Deregulation makes it legal to charge rent in dollars.
Millais also relaxed labor laws, extending the trial period for new employees from three months to eight months. Compensation laws for dismissal without cause have been amended to favor companies, and he plans to renegotiate collective agreements that have been in place since 1975.
He also said export restrictions would be lifted and the internet market would be liberalized.
Mr Milay has also waived rules that prevent the privatization of state-owned companies, and has already set his sights on national airline Argentinas Airlines and oil company YPF, while Elon had intended to take over the country’s satellite system ARSAT. – Named Musk’s Starlink.
He also moved to limit the constitutional right to strike.
He also moved to end all subsidies for public transport, which could result in an immediate 10-fold increase in ticket prices in one of the world’s most urbanized countries. be.
Protesters suffer from ‘Stockholm syndrome’
Millais, an outsider whose rise to the top shocked the nation, blames the previous government’s interventionism and protectionism for choking the economy.
Before the decree was announced, the new government had already announced that it would devalue the Argentine peso by more than 50% and slash generous state subsidies for fuel and transportation starting in January.
“The goal is to begin the path to rebuilding the country, to restore freedom and autonomy to individuals, and to begin dismantling the vast regulations that have halted, inhibited and inhibited economic growth,” Milley said. Ta.
“There may be people who are suffering from Stockholm syndrome. They are addicted to a model that makes them poor,” he said of those protesting his measures.
Opposition parties, recently ousted from the government, have criticized Millais’s decree and see it as a way to circumvent a lack of a parliamentary majority.
Milley’s Libertad Avanza party, which is two years old, has won only 40 of 257 seats in the lower house and 7 of 72 seats in the upper house.
advertisement“This is not the way to go. Submit the reforms as a bill. Don’t be afraid of democratic debate,” said German Martínez, head of the Peronist coalition Fatherland Union.
Constitutional lawyer Emiliano Vitagliani told AFP that the country’s highest law states that “in principle, laws cannot be amended by statute and the president cannot replace parliament.” Told.
Political scientist Lara Goibul said the decision “oversteps all boundaries and mandates many issues that require parliamentary and local political consensus.”
Vitalini said the ordinance could be overturned if rejected by both chambers of Congress. Otherwise, it will take effect on December 29th.
Constitutional lawyer Alejandro Calio wrote in a column in Argentina’s La Nación newspaper: “The president is making very big bets, and his success depends on getting the support of the legislature; It was unknown until now.”
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