–“Look, Tato, the reality is that nothing. If there’s one thing I learned from the 1990 experience, it’s that I can’t promise anyone anything at all. And then, Tato, I came to eat noodles and not to chew glass..
It was the last day of October 1991 and Menem had two commitments to complete that day: sign a decree of necessity and urgency that liberalized the economy and fulfill the invitation to the penultimate Tato Bores program (The legend continuesChannel 13) to participate in the last block which ended with a table eating tagliatelle.
“Borges said that we Peronists were incorrigible. You too must be a Peronist because you too are incorrigible, Tato”he said before talking about deregulation and the DNU.
The program was recorded at noon. Menem remained in the studio until three in the afternoon and from there went to the Casa Rosada, where Domingo Cavallo, his Minister of Economy, was waiting for him and a speech to proceed with the elimination of the procedures, bodies and all bureaucracy of the State of a service and without going through Congress.
Menem was expanded. He had won the legislative elections just two months ago, even though Cavallo and the Convertibility Plan which stabilized the economy since April had a lot to do with it: he brought inflation from 27% in February to 1.4% in October and closing with 0.6% in December. A year earlier, in 1990, Menem had a rate of 95.5% in one month. Now, with stable pockets, the Argentines have received the second phase of the Menem plan. A reverse sequence to that of Javier Milei in 2023 (first deregulate, then stabilize?).
Cavallo prepared the decree together with a group of economists immediately after the 1991 elections. Juan Schiaretti, Carlos Sánchez, Jorge Ingaramo, Pablo Rojo, Carlos Kessman, Héctor Domeniconi and Luis Obeid. Present for the final review were his deputy Juan José Llach, his legal and technical secretary, Tomás Liendo, and the president of the CNV, Martín Redrado.
Other cabinet members also spoke.
“This will bring lawsuits against the state, Mingo,” warned Justice Minister Carlos Arslanian. “And political impact,” added José Luis Manzano, Minister of the Interior.
“It does not matter, Economic regulation must be dealt a definitive blow”said Schiaretti, next to Mingo.
For Cavallo it was necessary to cool down some clashes he had that year with Menem and which had generated rumors about the sustainability of the Convertibility. Deregulation would eventually seal those cracks even if they would then open up as cracks between the President and his minister.
The measures came out by decree.
He was authorized to negotiate salaries for companies, to market medicines in supermarkets, to eliminate the fixing of the price of bread and commissions in real estate agencies.
“The right criticizes the form and the left criticizes everything,” Clarín headlined.
“Deregulation is necessary but it should not have been done by decree,” said Federico Clérici, president of UCEDE, the main right-wing party of the time – now PRO. “The First World does not only look at the freedom of markets, but also at political and legal stability”.
Likewise, leaders who could be described as having a centre-right economic vision had a similar vision with the deregulation of the DNU and Menem.
“The decree is like the demolition of a building”, said Rodolfo Terragno, “demolition is not bad because to build you have to destroy, but you have to know what you want to do now and who the architects will be”.
“We all know that a decree does not repeal a law. We must deeply deregulate and defend competition to lower Argentine costs. Coups are not enough,” said UCR MP Enrique Olivera.
“Some deregulation measures respond to the need to decentralize and eliminate bureaucratic obstacles,” said the governor of Mendoza, José Octavio Bordón. But there are monopolistic sectors, such as the airline industry, that must remain regulated. A flight from Buenos Aires to Mendoza costs $300, almost $200 more than the international price.
“Menem thus realizes the dreams of the coup plotters of ’76 and of the financial oligarchy,” declared the general secretary of the Communist Party, Patricio Echegaray.
Cavallo immediately became angry.
“If every legislator put their hand on their heart and told the truth, could Congress have adopted a law with the simultaneity and timeliness of President Menem’s decree? “There will be more investment and more jobs, although in some sectors the reaction may be quicker than in others.” The decree affected 10,000 workers of closed organizations and entities. The majority would be transferred to AFIP, Customs and ANSES.
Source: Clarin
