On the night of March 1, President Javier Millay made an unprecedented speech in front of Congress for various reasons. For one thing, his office called the event a „State of the Union“ address, even though he was officially scheduled to open Congress that year. He also announced an „anti-caste“ law that would criminalize currency emitters and eliminate public funding for political parties. But most importantly, Millais announced his intention to sign a new national „agreement“ on May 25, the 214th anniversary of his nation's founding. may revolution Freed Argentina from Spain.
of Pacto de Mayo Millais' proposal includes the following promises: 1) Inviolability of private property. 2) A non-negotiable balanced budget. 3) Return of government spending to a level of 25% of GDP. 4) Tax reform to effectively alleviate fiscal pressure. 5) reform of the tax „joint participation“ system, i.e., the interstate federal tax revenue distribution system; 6) Exploitation of available natural resources. 7) Flexibility of labor laws. 8) Pension reform allowing private pension funds. 9) Political reforms to eliminate public funding of political parties. and 10) free trade.
Several Pacto de Mayo Principles such as the protection of private property are already theoretically embedded in Argentina's constitution, but most of them appear to be fundamental goals for all liberal democracies. In fact, they are very similar to the 1989 ones. washington consensusis also a set of economic policy prescriptions that primarily encourage states to embrace economic liberalism.
Compared to John Williamson's 10 points of the Washington Consensus, Millay's originality lies in his emphasis on the need for pension reform in this country. My personal savings were confiscated a few years ago. Meanwhile, millions of government benefits disguised as pensions have been paid out at taxpayers' expense in recent years. Another difference is that Millay promotes the development of natural resources, especially when some states refuse to develop them (Lithium exploration banned in La Rioja state) instead depends on federal tax revenue. That's why the president has advocated tax co-participation reform, which would allow states to increase public spending while relying on federal taxation.that Pacto de Mayo One principle diametrically opposed to the Washington Consensus was Williamson's call for tax cuts, which he advocated for expanding the tax base. After all, Pacto de Mayo It looks like a revamped Washington Consensus.
So who signs? Pacto de Mayo?Governors. And this is because Millay's announcement is not just ideological, but strategic.rear Failed to get Congress to pass Ray Basean omnibus bill containing comprehensive deregulation, would have complemented his proposal. Major Cabinet Order in the second half of 2023, Millais knows he needs to work with local authorities to implement further reforms.but Kirchnerismoa left-wing movement that Millais defeated in a poll a few months ago. Pacto de Mayo. So his strategy is to avoid negotiating with political parties or individual legislators and instead lobby key governors. The idea is that by providing financial relief to some states, governors would direct their legislators (who usually serve as their political bosses) to support government bills.
In addition to the announcement of Pacto de Mayo and “anti-caste” laws., Millais also announced the abolition of the state news agency Tellam, which was effectively a taxpayer-funded left-wing propaganda outlet. But for the most part, Millay's speeches were similar to those he gave. Delivered to his inauguration. This time he quoted: milton friedman and referenced friedrich hayek's road to serfdom.
Millay's future Pacto de Mayo, like the rest of his agenda, is uncertain. His administration not only decided to return the Leigh base to commission stage to prevent defeat; His grand decree is also being challenged in court.. It remains to be seen whether he can appeal to governors with an improved version of the Washington Consensus. However, despite such harsh economic conditions, Mirei is still popular And Friday night's speech signaled an ideological resurgence that energized his base. The president is not backing down. In fact, he is accelerating.
Marcos Falcone is a project manager at Fundación Libertad and a regular contributor to Forbes Argentina. His work has also appeared in The Washington Post, National Review, Reason, and elsewhere. He is based in Buenos Aires, Argentina.