On February 6th, Congress will initiate the legislative control procedure of the Necessity and Urgency Decree (Decreto de Necesidad y Urgencia – DNU) Nº 27/2018, which introduced changes to the current regulations aimed at promoting the simplification of the State. This Decree has the objective of simplifying State working mechanisms. The Legislative Branch has the power to declare this type of decree invalid. The opposition has already spoken against the measure and expressed its intention to derogate the decree. However, if all Cambiemos legislators support the regulation, it is highly unlikely the DNU will be derogated.
With regard to the financial sector, the decree stipulates amendments referring to the authenticity of electronic documents, billing summaries and salary account seizures.
The President has the constitutional faculty of issuing DNUs that introduce government measures with legislative content, only when it can not be done through ordinary means. However, the Congress has the power to review and anull them.
In order to do this, the legislative process is divided into two stages. First, the decree is analyzed by the Joint Committee for Legislative Proceedings. After that, it is sent to both floors. Next week, the Joint Committee will begin discussing the DNU and it is expected to issue a favorable opinion. Afterwards, the DNU will be debated in the Chamber of Deputies and Senate. Both floors have to declare the decree invalid for it to be annulled.
If the ruling party and their allies share a common position on the DNU, the chances of it being annulled are low.