The obstacles that Milei may face with the mega-decree that deregulates the economy

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Amid criticism, the new president presented a Decree of Necessity and Urgency (DNU) with dozens of measures to deregulate the Argentine economy. President of Argentina, Javier Milei, speaks about conflicts Reproduction/Casa Rosada The new economic measures announced by Javier Milei generated a climate of tension in Argentina, leading to protests in several neighborhoods of Buenos Aires. But, in addition, the new president must still encounter other obstacles in Congress and the courts for its effective implementation. Labor reform, privatizations, rents: the main points of Milei’s decree Milei defended the more than 300 measures of the controversial Necessity and Urgency Decree (DNU) which aims to deregulate the economy that has suffered strong State intervention in the last two decades. His objective is to boost the country’s exports. “We detected, among laws and other regulations that hinder the functioning of the economy and a free society, almost 380 thousand regulations. We want to dismantle this impeding machine,” said the president. Milei is an ultra-liberal economist and took power 12 days ago after obtaining electoral support of almost 56%. He seeks to move forward as quickly as possible with his reforms to reverse the crisis in the second largest economy in South America. The president admitted that the set of measures contains unfriendly elements, but stated that it favors “lowering inflation, improving the economy ” and makes Argentines “have a better job and quality of life”, he said. Protests Hundreds of Banco de la Nación Argentina employees protested against a possible privatization due to the suppression of an article in a law that prevented the sale of the country’s main state-owned financial entity. Protesters gave a symbolic hug to the bank building. Milei’s decree also revoked the rule that prevents the privatization of public companies promoted by populist governments of the last two decades. After the president announced much of the content of the decree on Wednesday night (20), dozens of people banged pots in several neighborhoods of Buenos Aires in rejection. Hours before the presidential announcement, thousands of people called by left-wing political and social organizations protested against the government’s measures last week aimed at reducing the fiscal deficit and combating inflation of almost 161% per year. Milei stated that the citizens who held protests are “embraced and in love with the model that impoverishes them.” Former Argentine president Alberto Fernandez used his social networks in the early hours of Thursday (21) to criticize the Decree of Necessity and Urgency (DNU). “Our country is witnessing an event of extreme institutional gravity never seen before. The Executive Branch, in an act of clear abuse of power, advanced on the exclusive powers of the Legislative Branch”, writes Fernandez. Challenges in Congress and Justice Despite being issued by the Executive Branch, the decree must be sent to Congress by the government within 10 days so that it can be processed by a commission that must issue a decision in favor or against. Whatever the result of Parliament, the decree must be debated by the plenary of both chambers. The package of measures can be approved with the support of a single legislative chamber and, if Parliament does not take a decision, it remains in force. It is not known how long this process – which requires the president to call extraordinary sessions of Congress – would last. Meanwhile, the decree would come into force. Opposition parties and unions have announced that they will not stand idly by the president’s orthodox plans. The Peronist Union for the Fatherland bloc in the Chamber of Deputies, where it is the first minority, stated that the Decree of Necessity and Urgency (DNU) “is a brutal subjugation of the powers of Congress” and “Milei takes the Constitution by storm”. “In the face of the complicit silence of some, our bloc will defend democracy, the division of powers and the republic”, asked the legislators. “We will demand that the Bicameral DNU Treatment Commission meet and extraordinary meetings be called. It must be rejected by Congress urgently”, said the deputies. The package of measures could also face strong rejection at the judicial level. The General Confederation of Labor, the main trade union federation, announced that it will appear in court in the next few hours to allege the total unconstitutionality of the DNU and will meet to define the call for a massive mobilization in repudiation of the labor reform it contemplates. The trade union central denounced that the decree restricts the exercise of the right to strike by establishing the requirement for a minimum coverage of 75% in essential services, which include health and education. READ ALSO: Milei tests authority in the new government’s first street protest Milei government says it will cut social benefits for protesters in Argentina Milei’s controversial anti-protest package that threatens to arrest protesters in Argentina New economic measures announced by Milei generate controversy New economic measures announced by Milei generate controversy

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