A Major Setback for the Omnibus Law


Apr 10, 2019
I am trying to understand the developments regarding the Omnibus Law today. Here's what I have found so far:

The process for passing a law involves several steps, which were applied to the Omnibus Law as follows:

1. The bill is introduced in the originating chamber (in this case, the Chamber of Deputies) on December 27.
2. It is then discussed and drafted in detail by committees, which occurred on January 3.
3. The committees issue reports and send them to the full chamber for consideration, which happened on January 24.
4. The full chamber votes on the bill in general terms, which was done on February 2.
5. The chamber votes on the bill in detail, considering it article by article. This was supposed to happen today.
6. If approved, the bill is passed to the review chamber with partial approval.
7. Steps 1 through 6 are repeated in the review chamber.
8. If both chambers approve the bill, it is then signed into law by the President.

The process was at step 5, where the Chamber was supposed to vote on the Omnibus Law in detail, considering it article by article. However, due to complications during this phase—specifically, issues with the approval of key articles and the onset of discussions about privatizations—the session was disrupted, and the legislative process for the Omnibus Law has been sent back to step 2. This means that the debate on the bill has been returned to the committee stage for further discussion and drafting, effectively pausing the detailed examination and voting on the law that was underway.

Given the recent events, the future of the Omnibus Law remains uncertain, correct?

In your step 2, they don't draft the bill, they negotiate, and try to come to an agreement which will lead to a favorable dictamen, which is needed if the law is going to have a chance of passing.

With this law, during all the steps, different groups of the opposition have continued to negotiate with the government to come to an agreement, much of it outside the formal process.

They finally came to a general overall agreement, although with a lot of disagreements still to be worked out. The bill received a favorable dictamen, but with dissensions on crucial points. The overall bill passed, and moved on to the next step.

Finally, today, they couldn't come to an agreement on various points, including the sharing of the PAIS tax with the provinces, privatizations, and giving more discretionary power to Milei (as was done with Nestor and with Cristina). The government refused to negotiate further and sent it back to commission. And yes, it is in jeopardy.

The DNU for the moment is tied up in the courts, although some parts of it (like the abolishing of the rental law), are in effect. The government plans to send some parts of the DNU (such as labor reforms) to Congress as laws to be debated and voted.
As many of us said, even those of us who disagree with the Omnibus Law, they should have sent the laws one by one to Congress in some sort of deal where instead of the DNU, they'd agree to vote each law up or down by date X.

For an economist, Milei seems to struggle with basic math; he doesn't have a majority which means he needs to compromise. He can bemoan this all he wants, but it's that simple, either make changes to the proposals, drop them, or accept defeat, there isn't a 4th option here.