The emergency bill that the government of Javier Milei sent to the National Congress on Wednesday will affect almost all areas of Argentina’s economy, politics and society and will allow legislative powers to be delegated to the executive under the pretext of ‘a multiple emergency.
The law known as “basics and starting points for the freedom of Argentines” comes a week after the controversial decree of necessity and emergency (DNU) that the ultraliberal president sanctioned and which will come into force this Friday.
If the project is approved, legislators in Congress will allow the Executive to declare a state of public emergency in the economic, financial, fiscal, social, pensions, security, defense, tariffs, energy areas , health and social until at least December 31, 2025. The emergency can be extended for two years, which covers Milei’s entire term.
In total, the government is proposing a law that will reform, remove or add 664 legal articles.
Reform of the electoral system
Milei aims to replace the current system of election of deputies, distributed proportionally according to the D’Hont system, with a system of constituencies or single-member constituencies like that in force in the United States or the United Kingdom.
In addition, the project envisages the elimination of simultaneous and compulsory open primary elections (PASO) and the implementation of the single electoral vote.
Reforms of the Penal Code
The project also proposes a reform of the Penal Code to increase sanctions against those who “without creating a situation of common danger prevent, hinder or obstruct the normal functioning of land, maritime or air transport or public services of communication, supply of water, electricity or energetic substances”, punishable by a prison sentence of one to three and a half years.
Those who summon more than three people and organize such a “meeting or demonstration” will be sentenced to three to six years in prison.
Tougher penalties will also be imposed on those who physically attack officers.
Privatization of public enterprises
According to the bill, the government can privatize up to 41 state-owned enterprises in order to generate greater competition and economic efficiency.
Among the public companies subject to this privatization which appear in the annex to the project are: Aerolíneas Argentinas, the Banco de la Nación Argentina, the oil company YPF, the railways, the Télam press agency, the Casa de la Moneda or Nucleoeléctrica Argentina.
Ratification of the last economic DNU
The project will also protect the Decree of Necessity and Emergency (DNU) for the practical deregulation of the Argentine economy, signed on Wednesday by Milei.
Decree 70/2023 will come into force this Friday and is already facing several complaints in court and has not guaranteed the support of legislators in the chambers.
Increase in field deductions
The text of the project also provides that agricultural products which are currently not subject to export duties will be taxed at 15%, which will result in an increase in deductions applied to agricultural activity.
Changes in self-defense
In terms of security, the project expands the cases in which the figure of self-defense can be applied.
The project will defend that “whoever acts in compliance with a duty or in the legitimate exercise of his right, his authority or his position; In this case, the proportionality of the means used must always be interpreted in favor of those who act in accordance with their duty or in the legitimate exercise of their right, authority or position.
Suspension of the pension mobility law
If applied, the new rule will also include the suspension of the pension mobility law approved in 2020 and will allow the Executive to establish an automatic formula for adjusting benefits “taking into account the criteria of fairness and of economic sustainability.
Changes in the education system
Concerning education, the project proposes the creation of a final exam for students who have completed their secondary education.
For their part, public universities can charge fees to non-resident foreign students who wish to study in the South American country.
Deregulation of several sectors
If last week’s DNU began the deregulation of the Argentine economy, with the new and massive bill, the Milei government intends to deregulate other markets such as energy or sugar.
Foreign military operations
The new project would also authorize the entry of foreign military forces into Argentina.
The Executive could “authorize the entry into the country of contingents of personnel and means of the Armed Forces, belonging to other countries, for exercises, instructions or protocol activities of a combined nature”.
