Omnibus law brings changes in earnings, retirement and withholding

Amid criticism from governors and difficulty reaching a vote to approve the project, luis caputo The government announced this Friday Will withdraw the fiscal measures of the omnibus law, These are the chapters that cover the freeze, the change in the retirement formula, the two points that have generated the most resistance among legislators and governors. “This will speed up project approval time”.The Economy Minister explained the government’s reversal.

He told that there are five solutions in this chapter: “Laundering, moratorium, advance of personal assets, benefits legislation and withholding.”

Additionally, Caputo announced that another source of conflict would also be postponed: “This may also involve changing the retirement formula. This will be withdrawn.” Strictly speaking, the revision of profits was not within the omnibus legislation, but was a separate project that Javier Miley sent to Congress earlier this week, and this Friday Caputo confirmed that he would also withdraw.

According to Caputo, the amendments are intended to “facilitate the position of many legislators and governors” and to accelerate the treatment of the project in Congress, where the ruling party is expected to meet in deputies this Thursday and ultimately to do so as soon as possible. . Tuesday of the week. next.

In any case, the official stressed that this does not defeat the objective of “zero deficit”. He announced that progress could be made on Cut in money transfers to provinces, “If we want to give up income, naturally we have to reduce spending, and this includes all of us,” he stressed in an excerpt from the answers to journalists accredited in La Rosada.

In turn, the Economy Minister announced: “I have mentioned everything that has an impact on the fiscal numbers. We will evaluate the new measures and try to reach consensus on them with governors and legislators in the future. This is a There is a government that listens. Some people may find this strange, but this is what any government should do. Despite the outcry in Congress, we hear them,

Caputo began by elaborating, saying that, so far, the BASIS law, as the initiative is officially known, “has two very different chapters.” And he added: “There is an article with over 500 articles indicating structural changes in the country, regulatory changes, which will lay the foundation so that the country can develop over the next 20 years.”

“And there is a fiscal chapter, reaching zero deficit“, introduced one of the points that generated the most resistance. He immediately noted those differences.

“What we found in these conversations is that in recent weeks we had a clear consensus on what the most important part of the legislation is, these more than 500 chapters that have to be laid down. And There is some disagreement over what the economic chapter is” Caputo said in the Casa Rosada conference room.

“We don’t want this fiscal chapter to delay anything that we consider urgent and necessary and this is the change we want to show to the world, that everyone is watching,” the minister said.

He estimated that, with this modification, Time is about to go “fast”Facilitating the position of many legislators, governors who were naturally protecting the interests of their provinces.

Provincial leaders had shown their differences with the ban established in the omnibus law. It was highlighted by governors of hard Peronism, but also of dialogical Peronism, such as Martín Lariora (Córdoba) and representatives of Together for Change, such as Maximiliano Pullaro (Santa Fe) and Ignacio Torres (Chubut).

,This does not at all mean that we are going to abandon our commitment to achieving fiscal balance, zero deficit. It certainly remains,” Caputo commented this Friday. Chamber of Deputies President Martin Menem and Interior Minister Guillermo Franco listened to him from the front row.

In this regard, he said: “The goal of zero deficit will not be abandoned and what we are going to achieve by doing this is to make the most important piece of legislation easier for governors and legislators.”

He continued to explore the reasons for these last-minute changes: “Today we can take the time to develop new economic measures that are more friendly, easier to digest, for different economic actors.”

In any case, Caputo stressed that the pressure on provinces to adjust could increase. “It implies a big adjustment for everyone. Argentina is already making those adjustments today, it is a big adjustment for politics, for the nation and for the provinces. What this cut in expenses means today , It has a meaning,” the minister explained.

When Caputo was asked whether he would adjust the provinces, as he announced on social networks, the minister replied: “Deepening the adjustment will happen to everyone. Naturally, if you have a low income, To reach equilibrium you can either increase income or decrease expenditure. If we want to give up income, naturally we have to increase expenditure (In this way, It means ‘reduce expenses’), and that includes all of us, the nation and the provinces,” Caputo developed.

That statement contained failure and a warning to the governors. When he talked about “increasing expenses” he meant “decreasing expenses”. This, as both he and Miley were predicting, would lead to cuts in games and relocation to the provinces.

His presence was announced by the government an hour in advance. This also came after a week in which Miley’s management managed to get the majority opinion approved of the omnibus law. Representative And in which the Economy Minister put strong pressure on the governors to seek approval of the law next week in the Chamber – with a possible withdrawal of funds.

Regarding that confrontation with provincial leaders, Caputo clarified: “Some people interpreted it as a fight. There was no fight, how can I not understand a governor or some governors who are trying to protect the interests of their province. trying to.”