Argentine President Javier Milei appeared on a national network to announce the signing of the Decree of Necessity and Urgency (DNU)which provides for a massive reform of laws and the deregulation of numerous economic regimes, “the first step to end the decadence,” as he stated.
The Argentine media refers to the document as “a megadecree” because in its 83 pages it contemplates the reform of more than 300 regulations to lay “the foundations for the reconstruction of the Argentine economy and return freedom and autonomy to individuals, getting the State off their backs.”
“Argentines today is a historic day for our country after decades of failure and impoverishment and anomalies”Milei said at the beginning of his message, which lasted about 15 minutes. The goal of this ambitious plan is to “dismantle the enormous amount of regulations that have impeded, hindered and stopped our country’s economic growth,” she proclaimed.
Subsequently, the Argentine president listed 30 of the 300 measures that this “shock stabilization plan” has. Analysts mark an enormous distance between the economic measures announced on December 12 by the head of the Treasury, Luis Caputo, and Milei’s “real plan” that was revealed this Tuesday.
“We received the worst inheritance in history”, lamented the Argentine president while making the announcement. Among the burden received from the governments of recent years, mostly Peronist, Milei cited “the consolidated deficit of 15% of GDP, the highest tax pressure in the world, the lack of reserves in the Central Bank, destroyed credit confidence , unbridled monetary issuance and the annual inflationary crisis of 15,000%.”
The leader of the new Government also complained about the “serial defrauders” who have taken 13 zeros off the peso and destroyed five other national currencies, from “two hyperinflationary crises without wars, 50% of the population below the poverty line, 10% of the indigent population and five million Argentines who cannot afford to eat.”
Milei concluded his speech by saying that “this is just the first step” and that in the coming days he will send a package of laws asking Congress for “collaboration to advance this process of change that society chose in a context of crisis that requires immediate action.”
What do the new measures affect?
The shock plan announced this Wednesday night includes the repeal of the rental law, the possibility of football clubs becoming public limited companies if they wish, and the authorization of the total or partial transfer of the share package of Argentine airlines.
The decree, sent to Congress for approval in an extraordinary session, also provides for the repeal of the supply law, which contemplates sanctions on companies in cases of shortages of certain productsas well as the repeal of the shelf law, which forces supermarkets to offer a minimum of products manufactured by small companies.
In addition, the package announced by Milei also establishes the reform of the Customs Code to “facilitate” international trade and that “it is prohibited to prohibit exports,” in the words of Milei.