Argentina: President Milei calls on the political class to subscribe to a “new founding pact”


Argentine President Javier Milei pleaded on Friday for a “new founding pact of the Argentine Republic” in order to overcome the political and economic crisis in the country.

By opening for the first time in his mandate the 142 legislative year of the Argentine Congress, Milei invited the governors of the 24 provinces of the country, with whom he maintains tense relations, as well as all political leaders, to conclude this new Pact next May 25, a pivotal date in the history of the country which marked the start of the war of independence from Spanish colonization in 1810.

The pact proposed by the Head of State is made up of ten points which summarize his approach in the conduct of the country’s affairs since his inauguration on December 10.

It is particularly about the inviolability of private property, and the fiscal balance which is “non-negotiable” for him.

The head of state also proposes reducing public spending to “historic levels, or around 25% of gross domestic product” and carrying out tax reform to reduce the tax pressure on Argentines and promote trade.

Among the points to be included in this Pact are the discussion again of the rules for the distribution of tax revenues between the provinces, the modernization of labor legislation and the reform of the pension system.

Milei wants the future pact to finally include structural political reform and an opening to international trade, so that “Argentina once again becomes a player acting on world markets”.

The Head of State, however, conditioned the signing of this Pact by the approval of a package of laws submitted to Congress for examination, a first version of which had already been rejected by the deputies.

In this first speech on the state of the nation, Milei made a long reminder of the “disastrous” economic situation that he inherited from his predecessor, particularly in terms of security, inflation, poverty and “l ‘orgy of public spending’.

He castigated the leaders of the former center-left majority who left, according to him, “a national state bankrupt and incapable of fulfilling its basic functions”.

Milei detailed the measures adopted by his government to reduce public spending by 5% of GDP from the first month of his mandate, particularly recalling the reduction in the number of ministries, the closure of certain public bodies and the suspension of construction works. infrastructure among others.

He finally warned his detractors that if they reject his conditions, he is ready for confrontation to achieve his objectives “whatever the political price to pay”.

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