From Zero Deficit to Zero Emission: Milei’s Political Victory Amidst Reforms and Debate in Argentina

The Argentine president has announced that the country is transitioning from zero fiscal deficit to zero emission, comparing it to Germany, France, and Italy. This shift is seen as a political victory for Milei’s government despite having a small percentage of seats in Parliament.

The Senate approved a package of economic reforms with modifications, granting legislative powers to Javier Milei for a year and allowing for incentives for investments and privatization of public companies. The “Law of Bases” contains 238 articles and interventions in 11 areas of the Executive, aiming to stimulate investments and remove tax issues. A new ministry will be created to implement reforms, with Federico Sturzenegger leading the office.

Milei aims to maintain the broad monetary base unchanged while moving towards a zero-emission stage. While the specifics of the change in the monetary regime are yet to be defined, Milei’s government is focused on deregulation and economic reform. The president’s announcements have stirred debate among analysts, raising questions about the ideological consistency of the proposed reforms and the role of the new ministry.