In a context where the news seems to constantly revolve around crises and uncertainties, the enactment of the Ley de Bases in Argentina presents itself as a beacon of hope and a positive turning point for our beloved country. Amid the noise and confusion that often dominate the headlines, this law brings with it a tangible promise of change and progress.
Ley de Bases y Puntos de Partida para la Libertad de los Argentinos (Starting Points for the Freedom of Argentinians): its full name reveals the deep expectation and optimism that this legislation promises. The new package, containing more than 200 articles, is the first legislation that President Javier Milei’s government has managed to pass. This is a politically significant achievement, suggesting a paradigm shift in Argentina’s direction. With the Ley de Bases, the government has demonstrated its vocation and capacity to drive deep and meaningful reforms, laying the groundwork for a transformation that promises to modernize the country, attract investments, and provide a long-term framework of stability. The fact that the necessary political majorities were obtained for approval suggests political stability for this path of change, which many observers noted as necessary to fully trust the solidity of the proposed process.
This regulation is not just a set of guidelines but a declaration of intent to transform the Nation. The law addresses one of the most entrenched problems in our system: state bureaucracy. A more efficient and transparent State is not only a fairer State but also a catalyst for economic and social dynamism. It is a promise of a future where the country can reach its full potential in an environment of predictability and confidence.
With its implementation, a significant increase in both national and foreign investments is expected. This influx of capital will not only stimulate the economy but also generate new employment opportunities, fostering a virtuous cycle of growth and development.
But perhaps the most valuable aspect of the Ley de Bases is the predictability it brings. With a past marked by volatility, having a clear and stable legal framework is crucial for investor confidence, long-term planning, and ultimately, sustainable progress.
Broadly speaking, the new regulations will introduce four significant changes:
- Institutional Strengthening / State Reform: One of the most important keys of the Ley de Bases is that it grants the president extraordinary powers for one year by declaring a “public emergency in administrative, economic, financial, and energy matters.” This will allow President Milei, until mid-2025, to make decisions within the delegation’s framework and then submit them to Congressional oversight. However, this power comes with defined limits. To pass the law, the Executive accepted certain additional limitations, such as not intervening in or dissolving 15 public bodies, including the National Genetic Data Bank, Senasa, and INTI. Additionally, it committed to guaranteeing the financing of the bodies under the National Plan for Science, Technology, and Innovation. During this period, the President will be able to legislate through decrees, which will be controlled by the Bicameral Legislative Commission. Moreover, the Ley de Bases promotes a healthy reform of administrative procedures—making them more respectful of citizens’ rights; it encourages the rational renegotiation of relevant public contracts and the management of associated conflicts, and optimizes the regimes of public employment and public works concessions.
- RIGI: The Régimen de Incentivo a las Grandes Inversiones (RIGI) or the “Incentive Regime for Large Investments” is one of the most ambitious proposals of the Ley de Bases. The RIGI offers tax, customs, and exchange benefits for 30 years, along with regulatory stability and protection against state abuses, for projects exceeding US$200 million, aiming to attract large national and foreign investments. It is aimed at strategic sectors such as energy, agriculture, mining (including lithium), and infrastructure. Projects under the RIGI will receive tax exemptions or reductions and administrative facilities. The government considers it essential to attract capital and stimulate the economy, arguing that economic crises and defaults have generated distrust among investors, now needing special incentives to attract them.
- Privatizations: The Ley de Bases will allow the privatization of certain state-owned companies—not all those originally desired by the Executive—marking a path of budgetary austerity, administrative rationalization, and less state intervention in the economy.
- Labor Reform: The Ley de Bases seeks to modernize the labor regime and encourage the growth of formal employment, which has been stagnant for over a decade. The regulation offers benefits to employers who regularize their workers but eliminates penalties against informal work and special indemnities for unregistered employees. The government argues that this flexibility will encourage more companies to hire staff, as many currently fear facing labor lawsuits.
The winds of change are blowing strongly and favorably for Argentina. The Ley de Bases represents an opportunity to redefine our course and ensure a stable future full of possibilities. It gives us the chance to move forward with a firm step towards a horizon of progress and well-being. The path will not be without challenges, but with this law and with determination and commitment, Argentina can and will rise again. This is a call to action, an invitation to dream and build together the country we all long for. The enactment of the Ley de Bases is the first step on this exciting journey, and the wind is in our favor.
With optimism and faith in the future,
Francisco J. Roggero
Managing Partner
ZBV Abogados