Argentine court blocks Milei’s labor reform plan

The court ruled that the government of Javier Milei had not shown sufficient “necessity” or “urgency” to justify bypassing Congress and issuing the reforms by executive order.

A court in Argentina has suspended part of a mega-decree issued by President Javier Milei that aimed to dismantle the state. The decree, which was signed on December 20, 2023, deregulated the labor market, eliminated regulations on businesses, and opened the door to the privatization of state-owned companies.

The Labor Chamber of Argentina suspended the decree’s Title IV, which dealt with labor market reforms. The court ruled that the government had not demonstrated the “necessity” or “urgency” required to justify bypassing Congress and issuing the decree by executive order.

The government has said it will appeal the ruling. The case could eventually go to the Supreme Court.

The decree has been met with widespread criticism from unions, opposition parties, and legal experts. Critics say the decree is unconstitutional and that it will harm workers’ rights and weaken the state.

The decree is part of Milei’s plan to radically transform Argentina’s economy. Milei, a self-described “anarcho-capitalist,” has promised to slash government spending and reduce regulations, besides deciding an strong alignment with the US.

The government has defended the decree, saying it is necessary to “reactivate” the economy and create jobs. However, critics say the decree will only benefit the wealthy and worsen the country’s economic problems.

The battle over the decree is likely to be a major test for Milei’s presidency. The outcome of the case could have a significant impact on the future of Argentina’s economy and society.

Here are some additional details about the decree and the legal challenge:

  • The decree was issued on December 20, 2023, and went into effect on December 28, 2023.
  • The decree contains over 350 measures that deregulate the economy, privatize state-owned companies, and reduce government spending.
  • The decree has been met with widespread criticism from unions, opposition parties, and legal experts.
  • The Labor Chamber of Argentina suspended Title IV of the decree on January 3, 2024.
  • The government has said it will appeal the ruling.
  • The case could eventually go to the Supreme Court.
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