The reform of the Argentine state planned by President Javier Milei is already starting to have an impact. The mega-decree imposed by the far right, with more than 300 exceptions and regulatory changes, came into force this Friday, eight days after its publication in the Official Gazette. But the measure still must overcome obstacles in Congress, where it must be approved, and in the judiciary, where it includes thirty protections that call into question its constitutionality. A third firewall is on the streets: the economic crisis is serious and the social climate is simmering.
Milei's Emergency and Urgent Decree (DNU) repeals laws without parliamentary discussion, eliminates government regulations, allows the privatization of public companies, opens the door to dollar operations and provides the impetus to make the labor market and the insurance system more flexible. Health, among a hundred other measures. The mechanism is intended to allow the executive branch to dictate or amend laws in the event of an urgent matter that cannot wait for debate in Congress. However, there is consensus among constitutional lawyers that this is not the case with the decree signed by Milei, and they denounce the president's usurpation of legislative powers.
A bicameral commission of eight senators and eight representatives in Congress will analyze whether the “necessity” and “urgency” of the measure are justified. The commission continues to operate during the summer recess of Congress. If the decree is approved by the bicameral commission, it is submitted to the plenary session of each chamber, which must accept or reject the regulation in its entirety by an absolute majority of members. If only one of the chambers approves it – or if it is not discussed – the decree is considered valid. A negative vote by both would mean a rejection.
Milei's party, La Libertad Avanza, has no majorities in Congress – it has only 38 of 257 deputies and seven of 72 senators – but enjoys the support of some lawmakers, such as those reporting to former conservative President Mauricio Macri. Other sectors show more ambiguity, such as the Radical Civic Union, which assures that the country “needs a change” but that it must occur “respecting established forms”. On the other hand, Peronism, now in opposition, expressed a total rejection of the text, as did the Left.
However, debate in plenary sessions will have to wait until March 1, when regular sessions begin. While this is happening, the mega-decree is being challenged in court through thirty legal actions, as reported by the Télam news agency. The courts received unconstitutional applications that many lawyers consider to be justified. Not everyone is against the proposed changes, but many believe the forms conflict with the Constitution. However, as of this Friday afternoon (local time), the judiciary had not agreed to a suspension.
The decree is also facing resistance on the streets, where unions say they have managed to rally more than 20,000 people against a measure they consider “illegal” and “unconstitutional.” However, the mobilizations against the DNU began spontaneously after the announcement Milei made on the national network days earlier. That same night, the rejection of outraged neighbors could be heard from balconies in various parts of the country, and hundreds of them marched to the doors of Congress in Buenos Aires to defend rights fought for over decades.
Among the more than 300 points that the DNU prescribes without discussion, laws are amended or repealed that forced companies to guarantee internal food supplies, favored industrial development in disadvantaged areas, regulated increases for tenants, and prevented the privatization of public companies or put up barriers to imports and exports. The package also changes the healthcare system, allowing private health insurance companies to freely set their prices, and deregulates the labor market: it restricts the right to strike, removes sanctions for irregular contracts, allows working days of up to 12 hours a day or allows changes in remuneration. In addition, the regulation stipulates that foreigners are not subject to any restrictions when purchasing land and operations can be carried out freely in dollars.
In less than 20 days, Milei has pushed forward measures that show signs of an authoritarian tendency and social discontent has grown. The mega-decree, which amends or repeals more than 360 laws without parliamentary discussion, is joined by a decalogue of economic measures providing for strong adjustment, a protocol against street protests, the dismissal of 5,000 state employees hired by decree last year, and a Project of law that declares the country a “public emergency” and with which the right-wing extremists want to expand their power. The initiative presented this Wednesday includes 664 articles dealing with different issues ranging from reforming the political system to controlling social protests and authorizing the resale of tickets to sporting events. Due to this latest decision, the unions called for a strike on January 24th.
The government is confident that the measures it is promoting will succeed, relying on the support the polls gave it in November, when it won 56% of the vote in the second round against Peronist Sergio Massa. Milei assured that he would hold a non-binding popular consultation if the DNU is not approved by Congress. Additionally, he accused “some” lawmakers of being corrupt for trying to debate the gigantic reform he introduced. “Explain to me why Congress is against something that is good for people,” he asked. With the support he has received, he hopes to silence any dissent.
Apply foreign policy
This Friday, Milei advanced another of his planned changes for Argentina, making a turnaround in foreign policy. The country has officially declared that it will not participate in the BRICS, the economic alliance of Brazil, Russia, India, China and South Africa that Argentina joined in August. The Milei government has assured that it has sent letters to the bloc's countries to say that it “does not consider it opportune in this case” to participate in this area. “We are facing a change in official international policy that justifies entering into a much deeper analysis process than that carried out with the previous administration,” said presidential spokesman Manuel Adorni.
The South American country was added to the group from January 1, 2024, along with Egypt, Ethiopia, Saudi Arabia, Iran and the United Arab Emirates. When the news broke, the former president emphasized that the government of the Peronist Alberto Fernández in power emphasized the “unique importance” of the group as a “geopolitical and financial reference” and recalled that this bloc accounts for 30% of its exports.
Milei, on the other hand, warned that if he reached the Casa Rosada, he would withdraw Argentina from the BRICS countries. The right-wing extremist defended during the election campaign that his government would not ally with countries he sees as “communist,” even though the bloc's economies include Argentina's two main trading partners, Brazil and China. However, the right-wing extremist defends his closeness to the United States, Israel and “the free world” in general.
Since taking power, however, the president has sought to improve relations with some of the countries he previously attacked. After his victory, he put the grievances against Lula Da Silva behind him and invited the Brazilian president to his inauguration, but he declined. Days later, Milei received a Chinese delegation at Casa Rosada and sent a letter to the Asian giant's president, Xi Jinping, one of the South American country's lenders in recent years, warning him that it was “a serious mistake.” would act “break off relationships.