The government of Javier Milei accelerates these days the process tending to the economic deregulation and transformation of the State. Although the main objective of approving the law Bases The agreement was met in Congress, but implementation still requires the adoption of numerous measures. Technicians are working against the clock to have the necessary tools in place by August that allow the economic and political plan of the administration to be carried out Freedom Moves Forward (LLA). On the other hand, the portfolio in charge of Federico Sturzenegger is moving forward with changes to public employmentis currently one of the minister’s obsessions.
Government sources told this newspaper that they estimate that the regulation of the Government’s flagship law will be carried out during the course of this month. One of the flags is the Large Investment Incentive Scheme (RIGI)which is a key law to attract international capital. According to the presidential spokesman Manuel Adorni days ago, “Within the next three weeks, the RIGI will be regulated” and clarified that it is about “an issue that the President will follow up on personally”.
And this is a central issue for the Government. This week the decision was confirmed million-dollar investment of US$30 billion between YPF and Petronas for build a liquefied natural gas (LNG) plantan issue that pitted the President and the governor of the province of Buenos Aires against each other, Axel Kicillofsince it was initially planned to be carried out on land in Buenos Aires, but after the refusal of the libertarian and a study commissioned by an international consultancy, it was decided that the plant would be located in the area of Red Point, province of Rio Negro.
Are investments coming from RIGI?
Investments have plummeted so far in 2024, amid the economic recession, to the point that fell 68.3% year-on-year in Juneaccording to Evolution of the Foreign Exchange Market and Foreign Exchange Balance. Direct investments by non-residents in the private sector recorded net inflows through the foreign exchange market US$224 million in June 2023while in the same month of 2024 they did so only by US$71 million. Even compared to the previous month, they also marked a strong fall, since the investment was US$152 millionthat is, a 53.3% further.
In turn, the same RIGI It was the one that gave rise to another investment that had been announced during the government of Alberto Fernandezbut it could not be realized due to factors that the companies linked to the national macroeconomic and exchange environment. This is the mining company Canadian Lundin, which together with the British-Australian BHPtwo leaders in copper exploitation, will acquire the Filo del Sol binational deposit and the 50% of the Josemaria projectwhich will require a total investment of US$10 billion in the region.
Among the key chapters that remain to be regulated are also the privatization of companies who entered the law Basesled by Intercargo SAU, Enarsa, Argentine Nuclear Power Plant and the Río Turbio Coal Deposits; and those subject to privatization and/or concession as Argentine Water and Sanitation SA, Belgrano Cargo and Logistics SA, Railway Operating Company SE (SOFSE) and Road Corridors SA On this point, the former president Mauricio Macri On Thursday he asked that the process be “accelerated”.
Economic deregulation
Since his arrival at the portfolio, which was created purely and exclusively for his work in the State, Federico Sturzenegger works daily to deregulate the economy and transform the State. Since July 5, he has made several changes, among which the following stand out: commercial aviation deregulationin order to generate greater competition and the possibility of new companies in the sector being incorporated.
Also expanded the use of warrantswhich involves the tokenization of products in order to generate a greater amount of credit in the private sector at a lower rate. This involves giving a product as collateral for a loan, such as wine that companies have already produced. In the event that the loan is not repaid, the entity can seize that product.
Another of the changes that were made in recent days was the deregulation of insuranceby cancelling the request for authorization to carry out new services by insurers. That is to say, until now companies had to request authorization to launch products and now they can do so without the approval of the Superintendency of Insurance.
Changes in public employment
As to transformation of the State the eye is on the public employmentone of the obsessions of the former head of the Central. His idea is to end the “gnocchi” and shrink the state plant. To do this, it will implement three main axes: one already widely announced, which has to do with a entrance examination; another that they present as “improvements in the availability regime”which involves continuing to cover the salaries of state workers who move to the private sector; and a third that changes the secondment regime.
“The entrance exam will be objective, unlike what happened until now, to avoid political manipulation”the ministry said. Upon Federico Sturzenegger’s arrival at the ministry, this change had already been proposed, to which the general secretary of ATE, Rodolfo Aguiarhe responded harshly, stating that it started with a “nonsense”, since this “exists in the law and what is established in our Collective Labor Agreement for the National Public Administration 214/06,” said the unionist.
Regarding improvements to the availability regimefacilities are being analyzed for the private sector to hire available state personnel. To do this, they propose that employees can choose between receiving their salary for a period of up to 12 months or, if they go to work for a private company, that money is transferred to the company so that they receive that salary plus what the company itself pays them.
“When organizations merge or restructure, people who are on standby are given a salary protection during that period and are given compensation afterwards.”the minister said days ago in radio statements.
And finally, about the change in the secondment regime The aim would be to ensure that the Nation stops providing salaries to those who move to work in another jurisdiction and that, instead, it is the responsibility of the government department in which they work. Until now, according to sources from the ministry, the Government continued to pay the salary of the employee who went to work for a province, a municipality or another branch of the national State.
The legislative agenda of Federico Sturzeneggeras he already mentioned when he took office, aims to work on “obsolete laws that represent risks or obstacles to economic freedom”. Along these lines, Javier Milei himself had already announced that a “law litter” to Congresswhich he defined as “a set of regulations that hinder the functioning of the economic system.”
As if that were not enough, the minister is also moving forward with his counterpart from Human Capital, Sandra Pettovelloand the Secretary of Labor, Julio Corderoin the Regulation of the labor chapter. Without the presence of the CGTsince the union movement requested to discuss the part referring to the hiring modalities, as well as the sanctions for protests and the increase of the non-taxable minimum of Earnings.
Source: Ambito
