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Interest groups must be impoverished

The author of the Bases project pointed out against unions and others organizations that represent a “status quo is very powerful and strong“: “It became normal that each union can appropriate between 4% or 5% of each worker’s salary, either through the management system, or through voluntary contributions. In any other country in the world people would say, how can it be possible for unions to keep 4% of workers’ salaries?

The La Libertad Avanza (LLA) official spoke at a virtual conference from Harvard University moderated by American professor Steven Levitsky and accompanied by the panelists Carla Yumatle, Sebastián Etchemendy and Roberto Gargarellathe former president of the Central Bank.

“We have a country where textile products are the most expensive in the world. You can find them cheaper on the Champs Elysées than in a typical store in Buenos Aires. How can that be?. We have a regressive tax structure in which the poor pay more taxes than the rich. she added.

Federico Sturzenegger: “We must impoverish interest groups

In that sense, Sturzenegger referred to the right to fish and stated that “we have a system where there are a few fishermen who fish in the sea and basically pay a royalty of 0.15% to the Government. It’s free basically. In our project that we sent to Congress, the idea was to auction that fishing right and keep the income for the population. It wasn’t that we were going to allow foreign fishermen to extract everything.”

The presidential advisor emphasized a “powerful and strong status quo” and mentioned the solution to defeat “those interest groups:

“The status quo is very powerful and strong, it controls the media, the streets and some people even say that they control Congress with lobbying. What strategy is used to change this? One possibility is to impoverish these interest groups and drain them of resources,” he postulated. “If it is done we can have a chance to fight against these interest groups.”

Sturzenegger in New York.jpg

Federico Sturzenegger, presidential advisor and material author of DNU 70/2023.

The economist also assured that after the repeal of the rental law, prices in that market fell by 20%.

“What was done in the DNU was to give a freedom shock. We did this with a change in the contract part of the Civil and Commercial Code, which is one of the mother legal structures of Argentina, in particular an article called 958, which basically says that the application of the code to purposes of the contracts it will be supplementary. What this means is that the will of the parties prevails“, he said during his conference in Miami.

“Suddenly it is free for people to make the contract for as long as they want, with the currency they want, with the indexation clause they want and In the 3 or 4 weeks after the issuance of the DNU, rental prices fell by 20%, properties reappeared and the market was rebuilt“, he expressed.

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