More attention has been bestowed on the CGT for announcing a general strike without setting a date — which should be interpreted as strengthening the union umbrella’s negotiating position (especially as regards the income tax floor, perhaps) rather than as an irreversible stoppage decision. Prior to the passage of the 2017 Budget, the governors are seeking to unite all the legislators from the various strands of Peronism via the Federal Investment Council (CFI) to impose structural changes permanently strengthening the provincial hand. A six-point package has been drafted whose general thrust is to make all remittances to the provinces within and beyond federal revenue-sharing totally automatic, thus removing the executive branch’s power to dominate the provinces via a discretionary control. One difficult question for Macri is whether he wants to block changes which he approves in principle — another difficult question is whether he can. Perhaps the biggest worry for the government is not securing approval of the 2017 Budget but having to accept it with mechanisms which end a dependence that helped Macri disguise his parliamentary weakness so well until now.

Source: Bueno Aires Herald September 27, 2016 03:00 UTC