President Javier Milei and his sister Karina Milei gathered legislators from La Libertad Avanza at the Casa Rosada to set the legislative agenda. The priority is political reform, which includes the elimination or suspension of the PASO, the Cold Zone regime, changes to Tax Innocence, and a future reform of the Central Bank’s Organic Charter. The government bets that eliminating open primaries will divide the opposition and pave the way for other initiatives.
Hours later, Chief of Staff Diego Santilli and libertarian senators met with allied blocs to prepare for the reactivation of activity in the upper house. The ruling party seeks to convene a session after the parliamentary labor meeting scheduled for July 8. Among the projects under discussion are also the Inviolability of Private Property law and electoral reform, although several initiatives remain conditioned by the lack of agreements with dialoguing sectors.
Milei announced that he will seek to modify the Central Bank’s organic charter, a demand from the International Monetary Fund in the latest review of the economic program, published on May 8. If he moves forward on this line, the president will abandon his incendiary intentions toward the monetary authority and will be tasked with restoring the spirit it had in 1992, at the dawn of the Washington Consensus in the country. The measure raises fears in the market, which already suspects that the Central Bank intervened to contain the rise of the dollar.
Meanwhile, disapproval of Milei’s management reached its highest point since he arrived at the Casa Rosada, according to a survey by Management & Fit. The President’s image is in a critical situation, and the electorate is beginning to seek change, putting at risk his intention to seek a second term and a runoff. The consolidation of a more individualistic outlook, rejection of the state and traditional political leadership are marked by profound transformations in the world of work. The challenge for the opposition identified with Peronism is to capitalize on that discontent.
On another front, the libertarian deputy filed a complaint over the heckling she suffered on Flag Day by a woman she characterized as a «feminist Peronist militant.» She seeks to impose a restraining order and other penalties.
Santilli’s swearing-in as Chief of Staff brought together thirteen provincial governors who are betting on opening a stage of greater dialogue with the Casa Rosada. But the debut came with bad news: in June, co-participation and automatic transfers fell again. Additionally, the government omitted presenting economic projections after a first semester of deterioration in inflation and activity. Under-execution and a drop in spending in key areas were also revealed.
The dollar started the second half of the year with a clear upward trend and strong demand that was controlled with specific operations that the market suspects were carried out by the BCRA. Tax revenues grew 23.7% in nominal terms but fell below inflation and registered a drop of nearly 7% in real terms. The reduction of export withholdings, the slowdown in imports, and changes in Income Tax maturities explained the result.
In terms of infrastructure, the Pampa and South-Atlantic-Access South sections are no longer under the control of the state company Corredores Viales and pass into the hands of private companies. Amid the transition, workers at toll booths fear losing their jobs.
Para mí Milei al fin se avivó: las PASO son un curro de la casta y el BCRA una fábrica de pobres. Me parece que cambiar la Carta Orgánica es el primer paso para dolarizar ya. Los zurdos lloran, pero nosotros la estamos remando. ¡Chau chorros!
che pero para mi esto huele a entregada total milei y el fmi quieren liquidar el banco central para que los bancos privados nos afanen hasta el sueldo y encima sacan las paso para que no votemos a los candidatos de verdad basta de ajuste para los ricos viva la patria carajo