The Argentine Congress approves the historic "Basic Law" for economic reforms

After six months of intense debates and numerous negotiations, the Argentine Congress finally approved the long-awaited "Bases Law", a package of economic reforms that will be a milestone in President Javier Milei's administration. This approval signifies a significant change in the country's economic policy and is seen as the beginning of a new era by the president, who enthusiastically celebrated the approval of this law on a national television channel. With a result that was defined in the early hours of Friday, the 28th, the Bases Law was backed by 148 votes in favor, 107 against, and 2 abstentions in the Chamber of Deputies, after the Senate introduced some modifications to the original project. This achievement grants legislative powers to Javier Milei for a year, incentives for investments, labor flexibility, and the possibility of privatizing state-owned companies, among other measures. President Milei, in an official statement, highlighted this approval as a step towards building a "free and prosperous" country that reflects the will of the Argentine people. According to international analyst Jorge Negri, this political victory represents a significant achievement for a party with a minority representation in Parliament, demonstrating the ability to negotiate and drive ambitious reforms in a short period of time. Despite this historic approval, the question arises as to whether this change in economic policy will entail a shift in the government's relationship with the opposition. Argentine political scientist Alexandra Morales points out that, while the approval of the Bases Law was crucial for Milei's government, negotiation and political agreements remain a challenge, which may require modifications to the ministerial cabinet to strengthen political management. One of the most prominent aspects of this new phase is the change in the monetary regime announced by President Milei. With a recession-hit economy, high levels of inflation, and a significant poverty rate, the implementation of this reform is crucial to stabilize the Argentine economy. However, the specific details of this change have not yet been fully disclosed, generating expectations and doubts among analysts. The focus on zero issuance and fiscal consolidation, as well as the possible relaxation of capital flows, are some of the measures that could be part of this new monetary regime. The appointment of Federico Sturzenegger, former president of the Central Bank of Argentina, to lead a ministry in charge of economic reforms, reinforces Milei's government's intention to drive significant changes in the country's economic policy. Despite uncertainties and criticisms, the approval of the Bases Law and the creation of a new ministry represent an important step towards the economic transformation of Argentina. The next steps, such as the enactment of the law, its regulation, and implementation, will be key to measuring the real impact of these reforms on the country's economy. With challenges ahead and renewed expectations, Javier Milei's administration faces a new economic horizon that will shape Argentina's future in the coming years.