For now the numbers are not there. Not at least those that the Government expects to approve the most questioned reforms of the Omnibus Law. The ruling party managed to get the project a majority opinion, but with more dissent (34) than support (21). That is why he was forced to postpone the debate in the venue for next week. Even if President Javier Milei does not want to, he needs time to continue negotiating with the rest of the forces on key items such as the increase in withholdings, changes in retirement mobility and the delegation of extraordinary powers. In the midst of the search for agreements, the Minister of Economy, Luis Caputo, became impatient and issued a strong threat to governors and legislators: “All provincial items will be cut immediately if any of the economic articles are rejected.”
The motto “we don’t negotiate, we accept suggestions” is no longer believed by absolutely anyone. La Libertad Avanza opened a bridge of time until Tuesday of next week to discuss the modifications to the text with the provincial leaders and the allied deputies. The initial idea was to discuss the law today in the Chamber of Deputies and give it half a sanction in a marathon day. The plan could not be executed, basically, because there was no agreement on central points of the megaproject and the article-by-article debate would have led to a serious blow for the President.
The differences between the Government and the so-called “friendly” opposition were exposed in the plenary session of commissions. The majority opinion came out with dissent from the PRO, the UCR, We Make the Federal Coalition and Federal Innovation. Even radicalism voted divided and some legislators from the bloc led by Miguel Ángel Pichetto signed their own minority opinion.
The 34 dissidents of the allied legislators focused on the increase in withholdings, the pensioner update system, financing of the provinces and the privatization mechanism. These differences may jeopardize the approval of several central articles of the law, such as the adjustment to pension benefits or the increase in export duties on wheat, corn, meat, soybeans and industrial products.
The fury of “Toto”
Opposition criticism and stalled negotiations aroused Caputo’s fury. “The zero deficit is not negotiated,” he said and openly threatened the deputies and governors who refuse to approve the text without changes. “All provincial allocations will be cut immediately if any of the economic articles are rejected,” the Minister warned in a threatening tone, later clarifying that “it is not a threat.” “It is confirmation that we are going to comply with the mandate that the majority of Argentines have given us to balance the fiscal accounts to end decades of inflation and economic scourge,” he concluded.
The publication on social networks received a response from Pichetto – one of those who signed the majority opinion – who reproached Caputo for not having had the “courage” to go to present things to Congress and asked him to stop “squeezing the governors” and try to “seek agreements with provincial governments instead of threatening them. “If I have anything left over, it is courage,” Caputo responded and claimed to have “more important things” than going to Congress to defend the Omnibus Law.
The words of the head of the economic portfolio did not go down well with radicalism either. “I remind you that ministers are not voted for by the people and are at the disposal of decrees or impeachment,” warned deputy Rodrigo de Loredo to highlight that governors and legislators are elected by the people. And he stated: “The people did not vote for an adjustment to retirees or an increase in withholdings.”
comings and goings
The allied blocs agreed to sign an opinion with dissidents after the Government had incorporated a set of changes, after a meeting held by the Minister of the Interior, Guillermo Francos, and the governor of Entre Ríos, Rogelio Frigerio – on behalf of the dozen governors.
La Libertad Avanza modified the article on money laundering that established that the proceeds were going to go to the national coffers; eliminated the specific allocation and will be distributed through the federal co-participation mechanism. In addition, it was agreed that in the event that the assets of the ANSES Sustainability Guarantee Fund are liquidated, these resources will be used to settle the debts of the provincial funds.
Another agreed issue is related to the teaching partnership: the Federal Council of Education will be the one who will face the negotiations with the teaching unions. Likewise, the Federal Regional Infrastructure Trust Fund will be maintained, which aims to financially assist the provinces, the National State and the CABA; and the Provincial Development Trust Fund, which assists and finances development programs.
Opposition
The Unión por la Patria bench, for its part, obtained a minority opinion with 45 signatures rejecting the official project. The Peronist bloc was surprised by a Tucumán deputy who accompanied the ruling party. Meanwhile, the legislators of the Civic Coalition, Socialism and GEN, who make up Hacemos, also issued minority opinions, as did the left, which presented its own office against the Government’s initiative.
