“There is not going to be any fiscal pact. Let the governors pay the salaries with their own money,” an official close to Javier Milei told TN. The Government redoubles its bet against the provincial leaders by returning the Omnibus Law to commission and postpones the tax negotiation.
In Casa Rosada, they accuse the provincial governors of being traitors and appeal to social pressure on the allied opposition that did not accompany the ruling party's proposals. They rely on the support they won in the elections and repeat that “people are going to judge them.”
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That is why the Government argues that the Omnibus Law would cease to make sense if it had more modifications. This is what the Balcarce 50 interlocutors repeated in the negotiations they had with the block heads. “Not one more comma is touched because it is of no use to us,” they stated from the Executive.
Close to the president, they do not reject the possibility of holding a plebiscite for Argentines to vote on the Omnibus Law. It is a possibility that the ruling party has been considering since it encountered legislative obstacles.
After no agreement on privatizations, the Omnibus Law returns to committee (Photo: Congress press).
The Minister of the Interior, Guillermo Francos, told TN: “If a law is approved declaring an economic emergency and in its particular treatment it does not provide the tools to treat that emergency, it makes no sense.”
“We talked with them to send the fiscal package next week. We are not talking about sharing the PAIS tax. “We had an agreement to approve the series of powers and they were rejected,” he added.
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Francos went to Congress in the morning and met with the block leaders and the president of the Chamber of Deputies, Martín Menem, to unblock the negotiation. He supported the Government's position of postponing the fiscal pact until after the sanction of the project and rejected the co-participation of the PAIS tax.
The governors later had a meeting with the block heads and debated the strategy against the ruling party's proposals. In Casa Rosada, until the last moment they believed that the law was going to be 90% passed.
The Minister of the Interior, Guillermo Francos, in the session of the Chamber of Deputies last Thursday (Photo: NA).
At the Government House, they were working on an offer for the governors to repair the fiscal hole of the provinces before the Omnibus Law fell. Balcarce 50 officials spoke of “other ways to provide funds to the interior.”
It was never in the plans to share the PAIS tax. The ruling party maintained that they did not plan it because Milei intends to lift the restrictions in June, so that the tax would lose its function.
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An official close to the president assured that they expect 30,000 million dollars from the field harvest, doubling the reserves that the Central Bank has been accumulating – they are already around 6,000 USD – and a drop in inflation. They reject a new devaluation.
That is why the Government did not consider giving in to further modifications of the Omnibus Law to agree to its sanction in the articles. They maintained that the number of companies to be privatized and the delegation of powers have already decreased.