The architect of the reform plan with which Milei wants to make Argentina “a world power”

LOOK: Milei launched a plan to rebuild the economy and “make Argentina a world power”

The decree almost immediately generated citizen protests, mainly among those who oppose the privatization of state companies. Aware of this, Milei admitted this Thursday the 21st that the set of “stabilization” measures that he promotes contains unsympathetic elements, but he noted that “it will benefit from the reduction in inflation, the improvement of the economy” and the Argentines “will to have a better job and standard of living.”

Among the 300 measures contained in the decree, the repeal of multiple laws such as rentals, supply, industrial and commercial promotion, among others, stands out. In addition, it opens the door for state companies to become public limited companies, considered a prior step to their privatization; and seeks to facilitate international trade with a reform of the customs code.

According to the DNU, in addition, the declaration of economic emergency will last for two years in the country, so many laws may be reformed by decree during that period.

“At least a year ago, Sturzenegger had begun work on what laws should be repealed or modified to lead Argentina towards an opening to the world and work more similar to that of other countries. He thought about that job more for a Patricia Bullrich government, but he had already had conversations with Javier Milei and when he went to the runoff he announced that he would take part in that project,” political analyst Santiago Rodríguez Rey explains to El Comercio.

– A figure of contrasts –

Originally from the province of Santa Fe but raised in the province of Buenos Aires, Federico Sturzenegger graduated as an economist from the National University of La Plata before traveling to the prestigious MIT in the United States, where he would later teach classes.

In 1994 he returned to his country to work as chief economist of YPF for four years, during the government of Carlos Menem. In 2001 he became Secretary of Economic Policy, an important position within the Ministry of Economy headed by Domingo Cavallo during the government of Fernando de la Rúa.

In that position, Sturzenegger was one of those responsible for the “mega swap,” a bond exchange operation that sought to delay the payment terms of the foreign debt in exchange for a huge increase in interest. In 2013 Sturzenegger was one of those prosecuted for his participation in this case that led to the over-indebtedness that suffocated the country, but he was dismissed in 2016 after a judge considered that he did not participate in the operation despite the fact that his signature appeared on the decree that enabled the exchange.

Aside from the political sphere, he directed the Business School at the Torcuato di Tella University between 1998 and 2005, with a brief break during his time at the Ministry of Economy. He then worked as a professor at Harvard (USA) for three years.

In 2008, with the election of Mauricio Macri as head of government of the Autonomous City of Buenos Aires, Sturzenegger was summoned as president of Banco Ciudad CABA, a position he held until 2013. That year he became a deputy under Macri’s party. and two years later, when the founder of the PRO arrived at the Casa Rosada, he was named head of the Central Bank of Argentina.

“He is one of the most cited people in his field due to the papers he has published. Academically he is very respected not only in Argentina but also abroad,” notes Rodríguez Rey. “He is a figure of contrast. Those who are not in the liberal circle do not see him favorably for having been part of Cavallo’s team at the time and for having been the head of the Central Bank during the Macri government. He is a person who has applied orthodox policies to try to solve problems around the power of currency. He has a monetarist position whose focus is above all on corrections in that way.

Under this position he created the UVA mortgage loans, eliminated the exchange rate and, above all, he devised the ‘lebacs’, predecessors of the ‘leliqs’ (liquidity letters) that Milei criticized so much during his campaign. “It was the monetarist solution that she promoted to generate resources for the Central Bank,” says the analyst.

– Cacerolazo and protests –

Before the DNU announcement, the first picket (street march) against the Milei government was registered. The result was much lower than what the opposition expected and did not generate any major impact in the country. After the announcement, however, there was a new cacerolazo in rejection of the measures.

Furthermore, on Thursday morning the 21st, Buenos Aires woke up with protests near the Casa Rosada. Those who opposed a possible privatization of Banco Nación and other state companies stood out in them. Hours later, Sturzenegger ironically commented on the protests, stating that he “was shocked by how quickly they read it,” during an interview with Radio Miter.

“The biggest criticism is in the forms, because if one reviews the proposals there is a very good percentage that would be approved by this Congress. They would not have much problem being approved taking into account the fragmentation that the current Parliament has. For this reason, the president of the Radical Civic Union has requested that this DNU be sent in law format to be worked on in extraordinary sessions. Then obviously there are positions regarding the modifications in the environment of labor modifications, the open skies plan, among others,” Rodríguez Rey assures this newspaper.

Within the next 10 days, the Executive will have to send the DNU to Congress, where a commission must issue a ruling in favor or against. Subsequently, the proposal will be raised to the plenary session of both legislative chambers, where an absolute majority of those present will be needed to accept or reject it. Only if both chambers reject the DNU will it be invalidated. It should be noted that until a resolution is issued on the matter, however, the decree is in force.

Another option is for the DNU to be taken to court, a measure that the General Confederation of Labor, the main union center, has already announced it will take by denouncing it as unconstitutional.

“What Sturzenegger provided to Milei is a package of reforms very close to his political position and allowed him to buy a lot of time. This allows Milei to deliver a very important blow during what could be the honeymoon of his arrival to the presidency. Milei intends to bring a Copernican change to Argentina and this allows him to deliver a strong impact. In that sense, the figure of Sturzenegger does not harm him in any way. He provides a solution to a situation in which the Government found itself having to deal with a very complicated present,” comments Rodríguez Rey.