Region:
Argentina
Category:
Politics

The DNU of Javier Milei, which will bring about key changes, has come into effect in Argentina

  • The DNU of Javier Milei, which will bring about key changes, has come into effect in Argentina
    The DNU of Javier Milei, which will bring about key changes, has come into effect in Argentina
Region:
Argentina
Category:
Politics
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The DNU aims to promote an economic system based on free decisions, with deregulation in trade, services, and industry. Furthermore, it promises greater integration into the global market, adopting international standards.

El Decree of Necessity and Urgency (DNU) of Javier Milei, which aims to produce key changes in Argentina, came into effect at midnight on December 29. This extensive DNU, focusing on the "reconstruction of the Argentine economy," declares a public emergency in various areas until December 31, 2025.

Among the most prominent changes are the repeal of key laws such as those related to Rentals, Lands, and Supply. It also relaxes the labor market, paves the way for the privatization of state-owned companies, and implements detailed reforms in the 366 articles of the 83-page document.

In the labor sector, the probationary period is extended to 8 months, and collective bargaining is allowed to establish different compensation systems. The right to strike in essential services is also restricted.

In the business sector, progress is made in transforming state-owned companies into Anonymous Societies, eliminating public prerogatives and advantages. Aerolíneas Argentinas is specifically mentioned.

The DNU repealed the Rental Law, returning to long-term agreements under the Civil and Commercial Code. Changes in private healthcare allow affiliates to decide where all their contributions go.

In the audiovisual communication sector, limits on the multiplicity of licenses are eliminated, allowing unlimited access to signals for a single licensee.

These changes have led to various protests and pot-banging demonstrations in front of the Congress. The DNU also affects areas such as tourism, vehicle registration, and energy, by repealing laws and establishing new regulations.

Labor Reforms: The DNU introduces changes in dismissal compensations, limiting items considered in the calculation. The base will no longer include the Annual Supplementary Salary or semi-annual or annual payment concepts, resulting in an 8.3% cut in compensation. The possibility of replacing the indemnity regime with a cessation fund or system through a collective agreement is introduced.

Right to Strike: The decree establishes essential and of transcendental importance services, restricting the right to strike. For essential services, the strike cannot affect more than 25% of the staff; for those of transcendental importance, no less than 50%. The list of services is expanded to include telecommunications, education, and the production of medicines, among others.

Health: Affiliates to private health services no longer need to go through union social works. Each affiliate decides where their contributions go. The electronic prescription is promoted to streamline the service, and regulations are modified to encourage competition and reduce costs in the sector.

Labor Relationship: The figure of the "independent worker with collaborators" is created. An independent worker can have up to 5 more independent workers. This relationship is based on autonomy and is reinforced with monthly contributions to the social security system.

Changes in Credit Cards: Elimination of limits on interest rates and surcharges on transactions. Obligation of card issuers to publicly disclose financing rates.

Virtual Salary and Contracts in Crypto or "Liters of Milk": Modification of the Civil Code to allow contracts in cryptocurrencies, as well as in goods such as kilograms of meat or liters of milk. Possibility of accrediting salaries in digital wallets, unlinking them from bank accounts.

Changes in Car Purchases and Vehicle Procedures: Simplification of vehicle procedures and reduction of taxes in the buying and selling of cars. Proposal for license plates to be linked to the user, not the vehicle. Creation of the Digital Platform (RENDA) to digitize and simplify vehicle procedures.

Changes in Medicines and Pharmacies: Deregulation in the sale of medicines in pharmacies, eliminating sanctions for sales outside these establishments. Modification of the law on medicinal specialties to prioritize prescriptions by generic name and not allow prescriptions by brand.