Milei’s plans stall in Congress due to rejection by sectors from culture to agriculture

The president of Argentina, Javier Milei, and his Economy Minister, Luis Caputo, stated this week that if the packages they sent to Congress are not approved, the adjustment will be “even worse”. Milei made the statement during one of her daily ministerial meetings. Caputo, in turn, expressed it on his social networks. “The zero deficit is non-negotiable. And if the economic measures proposed in the law are not approved, the adjustment will be greater, as President Milei said, and especially for the provinces”, wrote Caputo on X (formerly Twitter).

The package has collected rejections. At exhibitions, in committees, in the Chamber, film directors and producers, as well as human rights and agribusiness entities had five minutes to argue their concerns and their antagonism to the bus law (Omnibus Law, so called due to the large number of articles). The cultural sector pointed out against the attempt to “empty” cinema, theater and the arts in general. Agricultural producers, with the support of several governors and parliamentarians, declared that they were against the government’s intention to increase taxes on exports of wheat, corn and soy derivatives, in addition to determining the collection of tariffs for those who have been exempt until now. – ‘regional economies’, such as lemons and wines, for example. The sugar sector is also dissatisfied. He understands that the government’s project to end the tariff barriers that have existed since the 1990s to protect this production will end up “benefiting the entry of Brazilian sugar”, say producers in the province of Tucumán, the epicenter of the sector in the country.

The situation is not easy for Milei. Agriculture, culture and science, among others, criticize his intention to count on approval from Congress (‘special powers’ is the name) to govern for two years, renewable for another two, without having to send his measures to parliament. The government argues that Argentina is in an emergency situation – the highest inflation in the world, according to the Bloomberg news agency, a shortage of dollars at the Central Bank and rising poverty. But the legacy received from Kirchnerism has not been a sufficient argument for the different branches of the Argentine economy and society to support the Milei government’s broad packages – in addition to the Bus Law, stalled in the Chamber, the opposition seeks to put a brake on the decree (Decree of Necessity and Urgency – DNU). Together, the law and the DNU totaled more than a thousand articles. The government retreated by more than 100, giving up, for example, on privatizing the oil company YPF. But his gestures and projects sent to Congress do not garner support. This Friday (26), the news was the departure of the Minister of Infrastructure and the growing power of Luis Caputo. According to surveys, Milei maintains popular support similar to the votes he received in the second round of the presidential election (almost 56%). Those who do not support him carried out or supported the 12-hour partial strike with a large protest near Congress. The new government’s political flexibility is being tested.