The Decree of Necessity and Urgency that he passed President Javier Milei contains 366 articles on 83 pages lay the foundations for a profound deregulation of economic activity.
The proposed change ends a significant number of overlapping regulations that have characterized the performance of Argentina’s economy and pricing system.
Sensitive issues for families such as drugs, which encourage competition generic drugs with brand-name remedies and with e-prescriptions, reflect the broad scope of the presidential announcement.
The repeal of the lawto rental law recently approved by Congress, it was the spearhead that President Milei chose to demonstrate closeness to the population in the face of a problem that had eliminated the supply of rental apartments.
From now on, more and more owners and tenants will be able to reach agreements both in terms of terms, updates and the currency in which they want to pay. What is agreed in dollars, for example, must be paid in dollars.
But the scope of the decree goes far beyond the case of generic drugs, something in which the former president failed. Eduardo Duhalde and, also, of the former Minister of Health Ginés Gonzales García, or in what is presented as the total deregulation of rents or the liberalization of prepaid prices of medicines. Where’s the key?
In the circle closest to the President, the contribution of Federico Sturzenegger who put the extensive work carried out for the then candidate and now Minister of Security, Patricia Bullrich, at the service of the new government.
Milei has long shown him respect by calling him a “colossus” and Sturzenegger (TV focused on him three times during the presidential message) appeared before the cameras together with the entire ministerial cabinet.
Trying to find the crux of the president’s statements, one of the technicians who worked on the preparation of the DNU focused on an article of the Civil and Commercial Code.
The core of the proposed modification is a modification of the article 958 of the Civil and Commercial Code attribute the possibility of a supplementary question.
The “supplementary” character of a norm is “that it applies in the absence of another”. In this case, and according to the philosophy of Casa Rosada, “the will of the parties is above the Code”.
In other words, a contract between the parties goes beyond the letter of the Code and this opens up a world of liberating contracts and eliminating controls.
Medicines. free rental of houses, freedom from advance payment of prices, membership of social works, authorization for businesses and workers to establish a particular compensation scheme, contributions to a prepaid pharmaceutical company without going through a ‘social work, are examples of the depth of the shock of the liberation of the contractual and price system launched by Milei.
The biggest announcement of liberalization and price competition in the last 30 years, since the approval of Carlos Menem’s convertibility.
Another particular case is the one proposed for the transformation of the share capital of Aerolíneas Argentinas.
They propose to increase employee participation in the company’s capital from 10% to 100%. Will it be feasible? Some “cacerolazo”Last night, after the presidential message, they turned on the yellow lights.
The DNU does not cover tax issues and, although it proposes the elimination of the Industrial Promotion Law and the Trade Promotion Law, it does not cover the Tierra del Fuego regime which runs on other tracks.
For the Casa Rosada, the DNU which will come into force at the moment of its publication in the Official Journal and which can only be rejected with the negative vote of both houses of Congress, will be followed by the State Reform law and another which they call “waste” which will try to eliminate some laws considered “absurd”.
The “export ban” hits the center of a sensitive part of the food basket.
In recent years, restrictions have been imposed on grain or meat exports at certain times of the year, in an attempt to contain prices and serve “the Argentine table”.
This concept does not fit into a crude presidential speech with a proposal for in-depth liberalization that comes at a moment of great sensitivity because between the mega monetary issue of the step and the total liberalization of prices, pensions and salaries were at the mercy of a heartbreaking, tremendous shock inflationary.
Source: Clarin
