MercoPress. South Atlantic News Agency

Milei gets May Pact signed on Independence Day (July 9)

Those not signing the Pact are trying to cling to the privileges of the past, Milei argued

Argentine President Javier Milei finally had his coveted May Pact endorsed in the wee hours of Tuesday at the historical house in San Miguel del Tucumán where the country's Independence was declared on July 9, 1816. “If we fulfill these points we will live in a country without inflation for the rest of our lives,” the Libertarian leader said after signing the document and delivering a speech lasting about one hour.

 Joining Milei were 18 provincial governors, in addition to the Mayor of the Autonomous City of Buenos Aires (CABA) and two former heads of state. Vice President Victoria Villarruel did not take part in the event citing health issues.

“We face problems of biblical proportions. Drastically lowering the weight of the State in our economy is our most important and most difficult mission. That is why we call for this pact so that all of us who have a responsibility in the matter do our part,” Milei stressed.

“Argentina is facing a turning point. The turning points in the history of a Nation are not moments of peace and tranquility, they are moments of difficulty and conflict, where everything seems uphill. They are moments when the abyss becomes so clear that change becomes an obligation and an urgency,” he added.

“There are many political, social, and union leaders who are not here. In some cases, because their ideological blinders make them ignore the root of Argentina's failure. In others, out of fear or shame for having persisted in the mistake for so long. And, unfortunately, in many cases, because they are obstinately unwilling to give up the privileges that the old order offered them,” he went on.

“It is no coincidence that among the latter are those who have tried and still try daily to boycott this government and conspire to make it fail. They are addicted to the system because their personal interests are diametrically opposed to those of the common people,” Milei also noted.

“Forty-four percent of State spending corresponds to the provinces and municipalities. For every national employee, there are five provincial employees. Reaching a reasonable State weight of 25 points of GDP requires that all levels of the State do their part,” he insisted.

“On July 9, 2024, with the signing of this act, we announce the kick-off of the new order of our country,” he underlined.

“What we are assuming is a non-negotiable commitment to common sense: we cannot spend more than what comes in and we cannot subject those who are paying to the wastefulness of the present. These are unalterable basic laws of economics. If we fulfill these commitments to the letter, I promise you that we will live in a country without inflation for the rest of our lives.”

Joining the head of state were former Presidents Mauricio Macri and Adolfo Rodríguez Saa, Buenos Aires Mayor Jorge Macri, Upper House Provisional Speaker Bartolomé Abdala, Lower House Speaker Martín Menem, Presidential Secretary Karina Milei, Cabinet Chief Guillermo Francos, and Ministers Luis Toto Caputo (Economy), Mariano Cúneo Libarona (Justice), Sandra Pettovello (Human Capital), Mario Russo (Health), Luis Petri (Defense), Patricia Bullrich (Security), and Federico Sturzenegger (Deregulation and Transformation of the State).

Signing the Covenant were the Governors of Catamarca (Raúl Jalil), Chaco (Leandro Zdero), Chubut (Ignacio Torres), Córdoba (Martín Llaryora), Corrientes (Gustavo Valdés), Entre Ríos (Rogelio Frigerio), Jujuy (Carlos Sadir), Mendoza (Alfredo Cornejo), Misiones (Hugo Passalacqua), Neuquén (Rolando Figueroa), Río Negro (Alberto Weretilneck), Salta (Gustavo Sáenz), San Juan (Marcelo Orrego), San Luis (Claudio Poggi), Santa Fe (Maximiliano Pullaro), ⁠Santiago del Estero (Gerardo Zamora), and Tucumán (Osvaldo Jaldo).

Among those refusing to participate were Peronist Governors Axel Kicillof (Buenos Aires), Sergio Ziliotto (La Pampa), Gildo Insfrán (Formosa), Ricardo Quintela (La Rioja), and Gustavo Melella (Tierra del Fuego).

The May Pact upholds: 1- The inviolability of private property; 2- A non-negotiable fiscal balance; 3- The reduction of public spending to historical levels, around 25% of the Gross Domestic Product; 4- A useful and modern education, with no desertion; 5- A tax reform that reduces pressure, simplifies the lives of Argentines, and promotes trade; 6- The rediscussion of federal tax sharing to end forever the current model; 7- The commitment of the Argentine provinces to advance in the exploitation of the country's natural resources; 8- A modern labor reform that promotes formal work; 9- A pension reform that gives sustainability to the system and respects those who have contributed to pension funding; 10- The opening up to international trade, so that Argentina once again becomes a protagonist in the global market.

Milei's initial plan was to have this understanding signed on the May 25 National Holiday but there were organizational delays stemming from Congressional times passing the so-called Bases Law.