The Argentine Senate approved this Wednesday the Base Lawthe ambitious legislative project of the Government of Javier Milei that establishes the legal framework for the profound transformation of Argentina’s economic and social model. He has done it on a day marked by a general strike and tensions at the doors of the chamber, where security forces have repressed the protesters.

Thus, after 11 hours of uninterrupted debate and while on the street thousands of people protested against, what is also known as the ‘omnibus law’, was approved by just one votewith 36 votes against and 37 in favor, including the ‘qualifying vote’ of the president of the Upper House and vice president of the Republic, Victoria Villarruel, who broke the tie in a second vote.

The initiative, presented by the Executive as a fundamental piece to “modernize and energize” the country on the basis of economic liberalism and reduce the role of the State in the economy, has already passed the process of the Chamber of Deputies. If it is modified during its processing in the Senate, it will return to the Lower House for discussion and final sanction.

The text, of more than 200 articles, is a reduced version of the ‘omnibus law’ and includes a controversial labor reform and the privatization of certain public companieswhich has generated great controversy and rejection among the unions.

Protests and confrontations with the Police

When the result of the vote was known, hundreds of protesters who were at the doors of Congress confronted the Police, throwing stones at them and building barricadesto which the agents responded with rubber bullets and tear gasin a repetition of the violent episodes that took place throughout the day.

The debate in the Upper House began at 10:15 local time and lasted until almost midnight. At stake were both the Law Bases and Starting Points for the Freedom of Argentines, also known as the ‘omnibus law’, and the tax reform promoted by the Executive.

The session was anticipated to be tense and prolonged, with Thousands of people demonstrating in the vicinity of Parliament against government initiatives. The day thus ended with violent episodes and at least three vehicles set on fire, as well as with 14 arrested and several injuredincluding five deputies hospitalized for the use of pepper spray.

The challenge was significant for the far-right La Libertad Avanza party, which is a minority in Parliament. Of the 72 senators, half were expected to vote in favor and the other half against, although doubts persisted about the vote of some legislators. Finally, It was the quality vote of the president of the Chamber that broke the tie.

The ruling party had a lot at stake in the vote, not only because the Base Law and the fiscal ‘shock’ plan are the core of Milei’s government programbut also because the result of this vote will significantly influence the political course of the Executive in the coming months.

State reform and privatization of companies

The Bases Law has been in parliamentary process for almost half a year. In the minority, the ruling party had to eliminate several aspects of the original projectl. After multiple reviews, the initiative was approved in the Chamber of Deputies at the end of April and to achieve its debate in the Senate, the ruling party agreed to more modifications.

The measure declares a public emergency in administrative, economic, financial and energy matters for one year, granting the Executive broad powers in these areas. The initiative allows the State reform, privatization of several companieschanges in labor and retirement legislation, and offers incentives for the energy and hydrocarbon sector and large investments.

Along with this project, the Senate is also debating a tax package which includes money laundering and a tax and customs moratorium. A legislative package that faces strong opposition from various political, union and social sectors, which mobilized to Congress.