Hectic hours in the business world. Owners and representatives of firms from different sectors of the economy seek to establish contact with references of Freedom Advances to know details of the plan “deregulation and reform of the State”. The great legislative bet of Javier Milei puts in check sectoral regimes such as Land of Firehe automotive and that of the knowledge economy, among others. There’s also uncertainty in the industry regarding incentive programs and fee subsidy. Those around the president-elect recognize that the assembly of the project is “dynamic” and that there are open conversations.
“A great regulatory digest,” is how an economist who had access to the more than 1,500 sheets that Federico Sturzenegger and his team wrote in recent months and made them available to the elected president. This plan drawn up by the former president of the Central Bank is the basis of the “omnibus” law that will enter Congress in the coming days and that seeks to generate profound changes in the economic, social and political order.
Phones burn. Nobody gives details, the text is kept under a dozen keys and changed several times in recent weeks, there are only a few approximations about its content. In Congress, legislators expect a “Dromi law” and prepare for a long discussion. Companies want to know what it is about and, above all, what will happen to sectoral promotion regimes.
In this group the tax benefits of the Tierra del Fuego manufacturersthe bonds of the automotive regime for the development of the auto parts and the motorcycle one. There are also bonuses for capital goods manufacturers and the knowledge economy law, which many consider a “state policy” because its first precedent dates back to 2004 and has passed through, with updates, the different governments.
As far as he could know Ambit, the initial project aims to eliminate nearly 3,000 regulations which include several of the regimes pointed out. Business sources report contacts in the last few hours that modified the initial plan, so some benefits could be reduced instead of eliminated, but there are no details on what the final impact will be.
A high source from La Libertad Avanza acknowledged in dialogue with Ambit that there were changes with respect to the original plan and that “the discussion remains open”. Although he confirmed that the predominant optics in space continue to be to end this type of programs. They assure that “with a stable macroeconomy, sectoral incentives will not be necessary.”
In any case, it is clear that the entire industrial policy will come into discussion in the coming days. Among the tools currently used are also the rate subsidies made by public banks, the Central Bank regulations that determine differential lines for productive investment or working capital, tariff schemes such as the Draw Back that reintegrates import duties and trade administration.
On this last point, last Thursday at the Argentine Industrial Union event, the future chancellor Diana Mondino He provided clarification: “The 10,200 non-automatic licenses have to disappear,” he said. The reaction of the businessmen present at the 29th edition of the Industrial Conference of the manufacturing entity was mixed. Tibia. More murmurs than applause. Many manufacturers understand that an abrupt opening to business can severely harm the health of their companies.
In the hallways of Buenos Aires Convention Center, which hosted the annual meeting of industrialists, there was a lot of talk about payments abroad. Despite criticism of the coverage provided by the Central bank, The truth is that the commercial debt grew more than US$20 billion in recent months, while the Lediv They do not fully exceed US$5 billion.
Companies are worried. Many claim that they are on the verge of running out of supplies and that they do not know when or how they will pay their suppliers. This is today the main uncertainty in the sector. In the team of Milei They prefer not to give details about the resolution of this problem.
Source: Ambito
