Law of Bases and Starting Points for the Freedom of Argentines

The Law of Bases and Starting Points for the Freedom of Argentines is an extensive economic reform omnibus bill proposed by President Javier Milei on December 27th, 2023. It was passed in the Argentine Senate and returned to the chamber of deputies on June 12th, 2024, in a 36-36 tie broken by Vice President Victoria Villarruel.

Background

The original bill contained 664 articles, which were modified into a bill with 232 articles. Changes to the original bill included restoring an income tax that was eliminated in 2023, reducing the number of companies privatized, lowering the number of different public emergencies, and modifying a proposed retirement mobility formula.

Content

Provisions in the bill include:

Emergency

• Maintains the declaration of public emergency while limiting it to administrative, economic, financial, and energy related emergencies for a period of one year.
• Adds that the Federal Executive must inform the Federal Legislature every month about what actions the delegated powers are doing and the results of the actions in detail.

State Reform

• Grants the Federal Executive the power to modify and reorganize state departments, state-owned companies and societies, trust funds, and certain decentralized agencies.
• Totally or partially privatizes several state-owned companies, including Aerolíneas Argentinas S.A., Energía Argentina S.A., Radio y Televisión Argentina S.E., Aguas y Saneamiento Argentino S.A., Correo Oficial de la República Argentina S.A., and Corredores Viales S.A.

Contracts

• Empowers the Federal executive to renegotiate or cancel contracts for public works, construction, or provision of goods and services.
• Contracts for "privatization processes, activity promotion regimes, investment, or production stimulus programs" are excluded.

Energy

• Authorizes the Federal Executive to adapt laws related to electricity and electrical regulatory frameworks.
• Creates environmental legislation for hydrocarbon exploration and distribution.
• Creates the Federal Regulatory Authority for Gas and Electricity to replace the Federal Electricity Regulatory Authority and the Federal Gas Regulatory Authority.

Investments

• Creates the “Incentive Regime for Large Investments” that establishes and organizes "Large Investments" for the interest of the nation, its provinces, and its municipalities.
• Establishes that any national or local measure that limits or distorts what is established will be rendered null and void.

Protests

The omnibus bill was strongly opposed by many leftist political parties, labor unions, and social organizations for limiting labor rights and promoting heavy tax breaks and tariffs in favor of large corporations.

On 12 June, protests erupted in downtown Buenos Aires as the bill was being deliberated in the Senate. Protesters used molotov cocktails, sticks, stones, and other objects to throw at police officers and riot police, and also used gasoline to burn down two cars outside of Congress. Police used water cannons, rubber bullet guns, pepper spray, and tear gas canisters to repel protesters and force them to disperse. At least 20 police officers were injured and over a dozen protesters were arrested. Among the protesters were labor union workers, pensioners, teachers, bankers, and truckers.

The Javier Milei presidency condemned the protesters as "terrorists" who by interrupting the Congress deliberation were "attempting to carry out a coup d’état".