One might think, for now only that, that the ambitious, unprecedented and unconstitutional? reform that is proposed by the Government – on Friday the State reform will be sent to Congress – may have, at the end of the day, a peripheral objective with enormous consequences: displacing the Argentine peso from the economy.
It would not be strange to conjecture – Borges loved this verb – a kind of puzzle or, as was said in this columna dollarization in slow motion. If it were so, the possibility of banishing the Argentine peso from the contracts entered into by Argentines, from now on, would be noted in that line of action which has already been causing talk since the Minister of Economy Luis Caputo announced his first steps.
The fact is that, once it comes into effect, agreements can be reached on updates, deadlines, but also in the currency in which you want to pay. If the dollar is chosen as the reference currency, it must be paid in dollars. There will no longer be the possibility of paying in pesos at a specific exchange rate. He who subscribed dollars will receive dollars.
However, there is something more relevant going on beneath the surface. The Decree of Necessity and Urgency announced last night and its 366 articles implant in Argentina the seeds of a profound deregulation of the economy. Thought of as “anti-caste” and “liberal”, the Casa Rosada is committed to reformatting the economybut with the axis in a particular article.
The Government stopped the entire structure of the reforms – and Federico Sturzenegger was the theorist behind the proposal – in the modification of an article of the Civil and Commercial Code. Underlies the enormous skein of reforms, a key, vital, practically unprecedented transformation, referred to article 958 of the Civil and Commercial Code (CCyC), thus assigning it the possibility of a “supplementary application”.
Article 958 of the CCyC states that “The parties are free to enter into a contract and determine its content, within the limits imposed by law, public order, morality and good customs.”. That is to say, until now, contracts were mostly governed by this article. Now, with the modification, it is assumed that everything that comes from the CCYC has a “supplementary” nature that is, “which applies in the absence of another.”
As Ámbito learned, both President Milei and Sturzenegger think that, with the decree, “the will of the parties” will take precedence over what the Code proposes. In Creole, what the two parties write in a contract will be more relevant from now on than the letter of the CCyC, therefore, there will be no possible limitations and regulations. Much less on a monetary level.
Vademecum
It would be long to list here all the reforms that will take effect in eight days – until Congress decides whether to issue them – but it could be said that the new legislation, in many aspects such as medicines, electronic prescriptions, prepaid medicine or social works, the repeal of the Rental Law, the price of yerba mate remains in the area of issues that make up daily life.
The relevant definition of “prohibiting exports is prohibited” will also imply a discussion and impact on the issue of the family table, food, the basket, especially flour and meatproducts that are exported but that used to have lower prices in the country.
In terms of work It is the largest reform of the laws since 1976 and advances on all dimensions of labor relations, conflicts, individual relationships. It sets limits to exercise the right to strike, it places limits on workers for those who want to be part of a protest demonstration and greater power to the employers. It establishes what is called “minimum coverage”, another limit on protests, with an area such as education that must guarantee 75% of normal coverage and other services coverage at 50% (oil, gastronomy, food, banking, transportation). .
The calculation base for compensation is significantly reduced and the UOCRA system is enabled, voluntarily and within the collective agreements. In establishments with up to five workers, for example, they become considered “collaborators” and therefore do not have the same rights as workers (no vital and mobile minimum wage, no labor rights). There is a reproduction of working conditions like the one that many informal workers have today..
The DNU does not contemplate tax issues – it must be done by Congress – and, as said, It remains to be seen the modifications that will be presented next Friday linked to the reform of the State and in educational matters..
Source: Ambito
