From the official account of the President’s Office, the summons to governors to begin negotiations for the May Pact. Will this be Friday March 8.
The 10-point proposal was launched by Milei in the opening speech of the Congress sessions. This is a pact that seeks to deepen fiscal adjustment and counter-reform policies, tailored to the IMF.
— Office of the President (@OPRArgentina) March 4, 2024
Last week a strong confrontation took place between the national government and the governors of Chubut and Buenos Aires, over cuts to funds allocated to those provinces. In just one day, Milei managed to obtain the negative consensus of almost all of the governors, united in defense of the shared funds. Finally, the resolution continued through judicial means, which in a first-instance federal ruling gave rise to the claim of the province of Chubut.
The president took note of this setback and chose to launch the call to sign a May Pact in the province of Córdoba, extended to governors, former presidents and political leaders. This is a founding pact of a new order, which would imply the approval of the Bases Law and a new Fiscal Pact.
The axes of the May Pact are very similar to the old neoliberal recipes that the IMF likes: inviolability of private property, non-negotiable fiscal balance, sharp reduction in public spending, tax reform, greater exploitation of natural common goods, labor reform, pension reform, political reform and commercial opening.
Some governors linked to the PRO have welcomed the proposal, others are willing to sit down and negotiate. While Peronism lets the adjustment measures run. The first consequences of this government’s plan are visible, inflationary shock that pulverizes salaries and pensions, recession and fall in consumption, closure of state companies with layoffs. Nothing good can be expected from this May Pact, which will deepen the surrender and adjustment of the popular majorities.
Developing.
Source: www.laizquierdadiario.com
