Ministry of Monetary Reform and Transformation: What does Millet want after key laws are approved? Javier Millet | Federico Stutzinger | Basic Law | Economy | World

“The stage of zero fiscal deficit has passed, now we are moving towards the stage of zero emissions. Now the change of the monetary system is coming,” the president said in his speech. Canal LN +after knowing the result. He even added enthusiastically that Argentina is beginning to move closer to Germany, France and Italy.

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The result announced early on Friday (28th) has been estimated as a favorable result because it is a limited package of economic reforms compared to the initial version. The Senate proposed some amendments and the House of Representatives passed it with 148 votes in favor, 107 votes against, and 2 abstentions.

As a result, Javier Mile will have one-year legislative powers, large-scale investment incentives, more flexible labor laws and authorization to privatize more than a dozen listed companies.

“The national government approved the first law on a free and prosperous state chosen by Argentines,” the presidential statement said.

For international analyst Jorge Negri, this is the first political victory of the Javier Milley government.

“We are talking about a party with about 10% of the seats in parliament that, even though it had to make a lot of concessions, was able to approve very ambitious legislation in just six months. That is, it is a more limited norm.”,clarify trading Professor at the University of Torcuato di Terra.

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Does this mean a change between the government and the opposition?

For Argentine political scientist Alexandra Morales, this does not necessarily mean “a conciliatory narrative, a political narrative different from the one used so far.”

“I think the issue of negotiations and political agreements remains one of the greatest weaknesses of this president, but understanding how important it is to be able to implement an agreement and to be able to have a majority for the Basic Law, he did so, and it was a revision within his own cabinet.”A political scientist and analyst from the Network of Innocence Women told the newspaper.

In this case, he noted that it was Minister Guillermo Franco who led the agreements and had more political experience.

Phase 2: Monetary change?

“The change in the monetary system is coming now”Milei pointed out in an interview with LN+. What does this change mean? It is worth remembering that, as of May, the Argentine economy is in recession, with an inflation rate of 280% per year, according to AFP. In addition, GDP plummeted by 5.1% in the first quarter of this year, and more than half of the population fell into poverty.

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For two analysts consulted by this newspaper, Mire’s statement still lacks details. The “Basic Law” package still needs to be monitored to understand the next steps.

Negri said it would be a change that would not be as drastic as planned. “I believe the government will work to make capital flows more flexible and perhaps eliminate multiple exchange rates, but all the details are not yet clear. “One of the hallmarks of the government in this new monetary system will be flexibility in currency competition, not the idea of ​​dollarization.”explain.

The idea of ​​currency change also goes hand in hand with Phase 2, Milley announced.

“Fiscal consolidation is ongoing, and the zero deficit phase is over. Now we are entering the zero deficit phase. Changes in the monetary system are coming. “Our goal is that there will be no larger changes in the broad monetary base.”the president announced to the Argentine media.

Morales pointed out that this is where Federico Stutzinger’s name came up and all he had to do was “Implement all provisions approved by the Basic Law.”

New Ministries and Stutsinger

After the approval of the Basic Law, the Argentine president announced the creation of another ministry. Although the name has not yet been determined, the head of state said in an interview that it will be a “ministry responsible for implementing reforms.”

Later, EFE reported that presidential spokesman Manuel Adoni said the name of the new ministry had not yet been decided. He added that he would be “in charge of accelerating and implementing everything related to deregulation and bureaucratic clean-up.”

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However, if it were a ministry, for Morales it would be “somewhat contradictory”. President Milley himself campaigned against the creation of multiple ministries and created the Ministry of Human Capital, bringing together the Ministry of Education into one ministry; the Ministry of Social Development; the Ministry of Labor, Employment and Social Security; and the Ministry of Women, Gender and Diversity.

“We do not have to forget the ideological basis of Javier Milè, he does not believe in the state, he even believes in its elimination, that is why it is somewhat contradictory, so we have to see if the announcements he made really seek to become more media,” the political scientist stressed.

It has been confirmed that the person who will head the office will be Federico Sturzenegger, former president of the Central Bank of Argentina during the Mauricio Macri government (2015-2019) (2015-2018), who also played a central role in the design of the economic reform package promoted by Mire.

“He is a person who is very committed to deregulation, that is, trying to eliminate the whole web of rules and clauses that regulate the economy. Argentina is a very regulated, very closed economy, filled with a lot of equipment. With this, I will have a portfolio that is clearly oriented towards debureaucratization and deregulation of the economy.” Comment by Jorge Negri.

Now, the next steps that the Argentine President must take are to promulgate the basic laws and regulations and implement them.