In a major announcement on the LN+ channel, President Milei declared that Argentina is set to transition from zero fiscal deficit to zero emission, drawing comparisons with Germany, France, and Italy. The Senate has approved a package of economic reforms with modifications, granting legislative powers to Milei for a year and allowing for incentives for investments and privatization of public companies.
This political victory for Milei’s government is seen as a small percentage of seats in Parliament. While details about the change in the monetary regime are still unclear, it is anticipated that it will occur. Milei aims to maintain the broad monetary base unchanged while moving towards a zero-emission stage.
The “Law of Bases” contains 238 articles and interventions in 11 areas of the Executive, aiming to stimulate investments and remove tax issues. A new ministry will be created to implement reforms, with Federico Sturzenegger leading the office. The next steps include promulgation, regulation, and implementation of the Basic Law.
The specifics of the change in the monetary regime are yet to be defined. However, Milei’s government is focused on deregulation and economic reform. The president’s announcements have stirred debate among analysts who raise questions about ideological consistency of proposed reforms and role of new ministry.
International analyst Jorge Negri views this move as political victory for Milei despite having a small percentage of seats in Parliament. He believes that change in monetary regime is anticipated but details are still unclear.
Overall, President Milei’s government continues its focus on economic reform through deregulation and transition from zero fiscal deficit to zero emission stage while creating new ministry for implementation.
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