President Mauricio Macri inaugurated the 136th Session of Congress. In his speech before the Legislative Assembly, which brings together members of the Chamber of Deputies and the Senate, the President proposed 2018’s legislative agenda. Consequently, ordinary sessions were enabled until November 30th.

Highlights for the sector

Access to credit

He indicated that 2017 “was the year in which the highest number of mortgage loans were made in almost 20 years”. He also emphasized the importance of generating a greater saving capacity. In this way, he estimated that the inflation rate is decreasing and that it is expected to continue its to deceleration in 2018. In this regard, he linked the need to stop inflation with access to credit and saving capacities.

Capital Market

He highlighted the Capital Market Bill as a facilitator of savings and credit. He requested Congress to prioritize it this year. Senators from Cambiemos (ruling party) and Sen. Miguel Pichetto (president of parliamentary group Justicialista, opposition) have already agreed to pass the bill.

Tourism

Macri stated that “even though airports have been improved, new routes have been built for more connections, VAT is refunded to foreign tourism and flights are cheaper, tourism is a common cause that has to be shared by everyone.”

Labor scenario

The President did not mention the Labor Reform Bill. He stressed that several measures will be introduced in Congress to generate greater labor inclusion “as a result of a teamwork between unions and employers”, reduce gender pay gap and modify the current paternity leave regime.

It is highly possible that the ruling party will insist on the Labor Reform by splitting it into different sub-issues for its discussion.

Other general ideas of his message

President Macri emphasized the need to lower inflation in order to help the economy grow. He declared that prices increase in 2017 were lower than in 2016, and that inflation will be even lower in 2018.

“We aim to lower inflation and reduce the fiscal deficit, and we will accomplish it. As a result, we will not need to ask for loans any more and we will multiply investments as a reliable country.” he said.

Macri also indicated that “it is time to balance our budget”. In this regard, he highlighted the agreement to work with the provinces in the process of reducing tax burden.

Additionally, President Macri stated that he seeks to build a “modern state, which gives Argentines the tools to improve their lives.” He clarified that progress is being made in this regard: “there are almost 700 procedures that can be done on the Internet. Everything is easier now, there is no need to travel or to queue. Since this year, these procedures and many others can be done by phone or online”

In addition, the President said that “the growth of our country depends on us and our ability to sit down to talk, without intimidating or extorting anybody.” Furthermore, he declared: “we have already proved that we can do it. We have done it with Vaca Muerta (a non conventional oil reserve); industries such as dairy and meat; the building sector, automotive industry, forestry and the biotechnological sector.