Argentina: "Basic Law" approved for economic reforms under Milei's presidency

After six months of intense debates and negotiations, the Argentine Congress finally approved the long-awaited "Basic Law", a package of economic reforms that will mark a before and after in President Javier Milei's administration. This milestone represented a political victory for the government, which managed to push through ambitious legislation despite having a minority representation in parliament. The implementation of this law will grant President Milei legislative powers for one year and includes incentives for large investments, the flexibilization of labor laws, and authorization to privatize state-owned companies, among other measures. According to a statement from the presidency, this is a crucial step towards building a "free and prosperous" country, in line with Milei's vision. One of the most notable aspects of this new phase is the upcoming change in the monetary regime. Javier Milei has expressed his enthusiasm for this transformation, alluding to the possibility of aligning Argentina with European powers such as Germany, France, and Italy. However, the specifics of this change have not yet been detailed, and it is expected that they will be defined in the upcoming stages of the law's implementation. For international analyst Jorge Negri, this monetary change could imply a relaxation of capital flows and the simplification of exchange rates, but more precise regulations are still needed to fully understand its implications. In a context of economic recession, high inflation, and widespread poverty in Argentina, the effectiveness of these measures will be crucial for the reactivation and stabilization of the economy. Although the approval of the Basic Law represents a significant achievement for Milei's government, it also raises questions about its capacity for dialogue and negotiation with the opposition. Argentine political scientist Alexandra Morales points out that while the necessary consensus was reached to pass the law, challenges remain in terms of building a reconciliatory and sustainable political narrative over time. One of President Milei's most recent announcements has been the creation of a new ministry responsible for carrying out the reforms promoted by his government. Although the name and specific functions of this ministry have not yet been defined, it is expected to play a key role in implementing the measures outlined in the Basic Law. The appointment of Federico Sturzenegger, former president of the Central Bank of Argentina during Mauricio Macri's government, as the head of this new ministry has sparked various reactions. Sturzenegger, known for his commitment to deregulation and simplification of the economy, could be a key player in executing the reforms proposed by Milei. In summary, the approval of the Basic Law marks a milestone in President Milei's administration and opens the door to significant economic transformations in Argentina. However, the success of these reforms will largely depend on their effective implementation and the government's ability to build consensus and implement policies that promote the country's growth and sustainable development.