The national government, through officials from the Deregulation Secretariat, confirmed that it is working on sending to Congress a «Bases Law II»a new and ambitious package of measures aimed at promoting the structural reforms that, according to the ruling party, the country needs to pave the way for investments.
The announcement was made by Alejandro CacaceSecretary of Deregulation and Federico Sturzenegger’s number two, during his attendance at the Budget and Finance Commission of the Chamber of Deputies. Cacace announced that the project will seek to reincorporate a large part of the points that were excluded from the first Base Law (whose original text had 664 articles and was reduced to 238 for approval) and add the reforms that emerge from the May Pactan agreement that the Government signed with 18 governors.
The legislative package would be sent to Congress next December 15once the legislative change resulting from the recent elections is completed.
Axes of the new mega-law
Among the key points that will make up this second «Bases Law», the following stand out:
- Modern Labor Reform: One of the great priorities of the Executive.
- Pension Reform: A significant change in the retirement system.
- Tax Reform and Rediscussion of Co-Participation: Fundamental aspects for fiscal balance.
- Exploitation of Natural Resources: Rules to encourage investment in the sector.
- New “Leaf Litter Law”: Aimed at repealing regulations considered obsolete.
Added to these are other axes of the founding decalogue of the May Pact, such as the inviolability of private property, non-negotiable fiscal balance, the reduction of public spending until reaching 25% of GDP, and modern initial, primary and secondary education.
Cuts and Lack of Compliance
In parallel with the announcement of the Bases Law II, other officials, such as the Secretary of State Transformation, Maximiliano Fariña, highlighted the intense process of cutting public spending. Fariña detailed the elimination of more than 400 areas of the State and the dismissal of 54,000 public workers, which generated savings of 18,000 million.
However, the legislative move occurs in a context of strong tension with the opposition and the institutional system. The Government was questioned for non-compliance with laws sanctioned by Congress, such as University Financing, the Disability Emergency and the Pediatric Emergency, vetoed by the Executive and insisted on by both chambers.
The success of the new initiative will depend, once again, on the negotiating capacity of the ruling party, which must seek agreements with the governors and the dialogue blocs, since it still does not have the necessary majority to guarantee the approval of this ambitious and controversial reform plan.
