Miles enacted his first law to destroy the Argentine state

Persistent fog mixed with the weather outside the Argentine Congress while senators debated the Bases Law, which proposes to change the economic structure towards an ultra-liberal regime. As the debate, which began at 10 a.m., progressed, the fog mixed with tear gas. Thousands of people demonstrated against a project that dismantles the state, makes employment precarious and gives huge advantages to foreign companies, while incidents and police repression occurred. At least 30 people were arrested and dozens were injured. At 11 p.m. local time, Javier Mieli’s government approved the first law in six months of government, very tough.

The slogans did not stop throughout the day outside the National Congress, despite the orders of Security Minister Patricia Bullrich. “Workers’ unity, and those who do not like it are doomed, they are doomed”, “It is not for sale, the country is not for sale”, were repeated with the sound of drums and pots, from the mouths of activists from social organizations, unions, human rights organizations and leftist and Peronist political groups, as well as ordinary citizens. Inside the venue, after 13 hours of debate, 36 liberal, PRO and radical senators voted in favour and 36 against, among them 33 Peronist legislators (from Unión por la Patria), the radical Martín Lousteau and two members of Por Santa Croce. Vice President Victoria Villarruel, as president of the upper house, tipped the balance with her vote for the approval of the base law. With this rule, Miley will have extraordinary delegated powers in administrative, economic, financial and energy matters.

Security forces enforced anti-picket protocols with water cannon, rubber bullets and tear gas. Representatives of the Unión por la Patria (Peronism) were injured. A group of protesters threw stones and Molotov cocktails. Police quickly responded with repression. The far-right president has accused the protagonists of the riots of being “terrorists” who “tried to stage a coup” and awaits the vote to leave for Italy for the G7 summit.

The liberal government had to make concessions with the megaproject to guarantee its approval. Its pillars remained, but it had to return with a list of companies to be privatized, excluding Aerolíneas Argentinas, Radio y Televisión Argentina and Correo Argentinos. In this way, only Enarsa and Intercargo would remain, while the concessionaires were Ayessa, Belgrano Cargas, Corredores Viales and Sociedad Operadora Ferroviaria.

RIGI was questioned

The articles that have been most opposed include those related to the Incentive Regime for Large Investments (RIGI). This system grants preferential treatment to goods imported by large foreign companies that are beneficiaries of the RIGI, for which they invest a minimum of 200 million dollars in primary activities. They will be able to enter any capital goods, spare parts or inputs without any tariffs in the initial investment phase and for the next 30 years. Thus, the national industry is in losses.

Fernando Mora, director of macroeconomic analysis at think tank Suramericana Vision, told elDiario.es that “RIGI aims to lure foreign companies, since they will be able to capture all the export dollars, exactly when the country needs to recover the dollars. So it’s problematic. In Argentina we compensate for the lower royalties of the provinces with the export right, with RIGI the tax on the right to export copper, lithium, gold or gas will be zero. And the income tax will fall by a whopping 25%. So, this regime leaves no dollars and collects few taxes.”

In the last minute of the debate, the ruling party gave notice of an amendment to the RIGI by indicating that cuts were being made in the following sectors: mining, energy, technology, agroforestry and infrastructure.

Extractivism must be accompanied by development, says Morra. “If we carried out extraction, but also collected taxes, did infrastructure work and had a foot on the ladder of development, it would be different. But with the Aadhaar law we are not going to collect taxes or do public works, so we exploit resources and do not develop. The expert concludes: “It is wrong to promote investment in a system that does nothing for scientific and technological development and that neglects key sectors such as health and education. “A combination of markets, infrastructure and human capital is essential.”

“Extractionism and Prioritization”

For Myriam Bregman, deputy of the Left Front and Workers-Unity, RIGI represents the plunder of resources. Her party, which has five legislators, is strongly opposed. Outside Congress, Bregman explained her concern to elDiario.es. “In the global division of labor, Argentina is being assigned the space of extractivism, of low wages, of plunder, because this law changes the conditions of our country in a structural way with RIGI, which is a mechanism of free giving that they call investment and rein in what I call plunder. They are not going to leave a single peso in our country, even with a clause that stipulates that when a natural asset is scarce, a company, for example, a lithium extractor, is prioritized and not the community that is closer to the use of that common property. “They turn Argentina into a smooth and leveled field for extractivism and the prioritization of the economy.”

The former presidential candidate said a very memorable phrase to his opponent Miley during an election debate: “More than a lion, he’s a cute kitten of economic power.” The libertarian president describes himself as the king of the jungle.

Labor reforms

Bregman points to the labor reform, part of the Aadhaar law. “They change the labor laws so that wages are very low and workers cannot complain even in cases of discrimination. The radicals never said in the election campaign that women work for ten days before giving birth, or that if you are a public employee they can fire you if you are pregnant. That is, they say certain things in the campaign and then do the opposite for personal gain.”

The labor reform seeks to make key aspects more flexible such as the possibility of replacing compensation with a severance fund, which will be deducted from the monthly salary, extending the trial period to six or 12 months and the exemption from fines for employers if your workers are not registered. In addition, the figure of the independent worker emerges, with the possibility of having up to five workers under the monotax modality, thereby terminating the employment relationship.

“This law does not benefit Argentine workers, on the contrary, it benefits big business. It’s a shame what they are doing to the country, they are selling Argentina. It’s sad. There are so many people who have nothing to eat. Young boys who have no future,” retiree Elsa Lajarte, holding a saucepan, said in outrage before Congress. “Senators raised their salaries when the people needed it.”

The sign carried upstairs by Maria Ines Bonfante synthesizes the sentiment of the street. “Collaborationist senators and representatives: they know they are handing over territories, they know they are destroying national industry. “They know they are handing over sovereignty, that they are going to prey on our natural resources.”