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The Reforms Proposed in Argentina by President Milei

Historical Background, Current Situation and Decree 70/23

Ricardo Rojas / 14 de March del 2024

The Reforms Proposed in Argentina by President Milei

Historical Background, Current Situation and Decree 70/23

President Milei inherited a country that has been in decline for more than a century and, at present, is facing a severe economic crisis. In response to this crisis, Milei decided to propose two immediate paths of reform: a Decree of Necessity and Urgency (DNU) and a bill sent to Congress. The contents of both represent the set of immediate reforms proposed by President Milei. These include an across-the-board deregulation of the economy, bureaucratic reform, state reform, labor reform, public health reform, changes in foreign trade policy, and additional reforms that allow greater contractual freedom. Yet, the current ambiguous legal status of the DNU is a cause of uncertainty. As noted, the DNU is in force, applicable, and any actions carried out under its authority will be valid, even if Congress is to invalidate the DNU in the future. However, as more time passes without a final ratification and the DNU is applied and becomes increasingly ubiquitous, the consequences of a future nullification would be serious, as it would mean reversing a series of reforms that are in full execution. Last, the constitutional validity of Decree 70/23 is analyzed.

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