On Tuesday morning, Argentina’s Lower House approved a pared-down version of President Javier Milei’s “omnibus bill” after the original version fell through in February. With 232 articles, down from the original 664, the bill still has to go through the Senate before it becomes law.

Like that first iteration, the omnibus bill is formally called the “Law for the bases and starting points for Argentines’ freedom” (and is also referred to as the “Bases Law”). This time, instead of deputies voting on each individual article, the 183-page bill was divided into eight sections and voted segment by segment. 

Here’s a look at the main points of the omnibus bill 2.0.

Legislative powers

The bill establishes an emergency on administrative, economic, financial, and energy-related issues and grants Milei legislative powers over these topics for one year. The original bill declared an emergency in 11 areas and was a major sticking point when it was debated in February but the scope was reduced to four.

The section allowing the executive branch to close or restructure public organizations was also passed.

Privatizations

The first omnibus bill initially proposed privatizing 41 public companies, and was a key stumbling block in February. Four public companies are now slated for privatization, while five more could be either privatized or put to tender. 

The companies slated for privatization are:

• Flagship carrier Aerolíneas Argentinas
• Oil, gas, and power company Energía Argentina, 
• Public media company Radio y Televisión Argentina
• Cargo company Intercargo 

The companies up for privatization or concession are:

• Utility AySA 
• Argentina’s national mail service, 
• Rail operator SOFSE 
• Rail cargo company Belgrano Cargas
• Road maintenance company Corredores Viales

Two more companies — Nucleoeléctrica Argentina and Yacimientos Carboníferos de Río Turbio — could be partially privatized, but the state would maintain majority control.

The text expressly prohibits the government from closing 14 key national institutes including the CONICET research council, food and medicine regulator ANMAT, and space agency CONAE. Organizations not exempt include the National Genetic Database and the institute against discrimination, INADI.

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Pensions

A 2023 pension moratorium allowing people to access a state pension by paying for missing years of social security contributions has been eliminated. People who lose this benefit would instead receive a form of welfare payment for older adults. 

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Labor reform

The labor reform extends the probation period from three to six months, allowing the smallest companies to extend it up to a year. Pregnant workers would be allowed to work up to 10 days before giving birth while another chapter eliminates sanctions against employers that fail to appropriately register their employees. The slew of proposed changes to Argentine labor laws led oilseed and maritime worker unions to start an open-ended strike on Monday.

Climate crisis

If approved, the omnibus bill 2.0 would give Milei power to legislate on energy issues. The “energy” chapter contains 51 articles that modify or scrap parts of the country’s Fossil Fuels Law (Ley N° 17.319). The new provisions would make “maximizing profit obtained from exploiting natural resources” into state policy. Environmental nonprofit FARN notes that public hearings as a part of environmental impact assessments could be substituted for other mechanisms. It adds that the executive branch would have the power to slash public fiduciary funds, which would allow it to ax cash pots destined for native forests, protection against wildfires, and renewable energy promotion.

However, unlike the first version of the omnibus bill, it no longer explicitly modifies forest and glacier protection laws to cut funds destined to protection of these ecosystems. A specific section deregulating environmental protections has also been removed.

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Investments

The eighth and final chapter of the bill establishes a stimulus law called Incentive Framework for Large Investments (RIGI, by its Spanish initials) which would grant tax benefits to companies that want to import and invest over US$200 million in Argentina. They would be exempt from national and provincial taxes and allowed to import goods without paying fees.

If the Senate endorses RIGI, any previous laws opposing it would be nullified. 

Tobacco tax

At the behest of the UCR party, a section was included in the bill that taxes cigarettes in such a way that a major tobacco company that was previously exempt due to a judicial ruling would have to pay the same duties as other companies.

Fiscal reform

A fiscal package was also debated and approved separately in the Lower House on Tuesday. Among its proposals is a tax and undeclared-asset amnesty. If approved by the Senate it would also lower the income tax threshold and abolish a tax category for low-income self-employed workers known as the monotributo social (which allows them to declare their work and provides health coverage in exchange for a small monthly payment). A transportation strike was announced in response to the potential income tax reform while deputies debated the package.

You may also be interested in: Argentina’s Lower House approves Milei’s revised omnibus bill and fiscal reforms