Page 21 - MONTT GROUP MAGAZINE, ENERO 2018 (ENGLISH)

Argentina: Pending Reforms
The Government will try during 2018 to reopen the debate of one of the great debts of the first period of President Mauricio Marci’s administration: the Electoral Reform, where there are two key issues: electronic voting and financing of campaigns.
With an eye on the last elections, the Executive presented in 2016 a comprehensive reform project that achieved, with many modifications, the endorsement of the Chamber of Deputies, but which, after harsh criticism of the text by specialists computer scientists, officials, legislators and academics, was arrested in the Senate. After the October elections, the Head of Government confirmed that he would insist again with the electronic voting project so that it will begin to be applied in 2019. But he will have to negotiate with the opposition majority of Peronism, which has different positions.
Modifying the form of financing of the policy will mark a total change of paradigm in the control of public and private contributions, with a “total bancarization” of the parties. The objective is to avoid “financing from illicit acts such as corruption and drug trafficking.” A new law on Public Ethics will also be sought.
Another pending reform for 2018 is the judicial one. The aim is to create a new Penal Code, a renewed law of the Public Prosecutor’s Office and a reform of the Council of Magistrates.
The President will present the draft of the Criminal Code, the heart of judicial reform, only in March, when the legislative sessions are opened. It would aim to toughen penalties for corruption and drug trafficking.
Codelco Goes Ahead to the Law of Glaciers
In the next few days, Codelco will present to the Environmental Assessment Service studies to move the operations of the Andean Division away from areas where glaciers are present.
The project called “Adequacy of Mining Works for Current Operational Continuity” will be entered through an
Environmental Impact Study and will seek adjustments to the pit mine and its ballast deposit, maintaining the rest of the operations and production processes of the division.
The investment that these works will require is about 250 million dollars and its construction will take 36 months. The objective of this initiative is to anticipate an eventual regulation on mining activities in glaciers, since there are several initiatives in Congress on the subject and, at the same time, take charge of the concerns of environmentalists.
Brazil: Delays Project Voting of Pension Reform
President Michel Temer postponed the expected vote on the Pension Reform bill, pending a more favourable scenario. Many believe that it will return to undergo legislative scrutiny when the summer recess ends, on February 19, just after Carnival, when the year really begins in that country.
Analysts believe that regulations are crucial to managing the country’s rising levels of public debt. If the current rules are still valid, Brazil would end up spending 23 percent of its Gross Domestic Product (GDP) on pensions by 2060. The approval of the reform is considered essential for that country to regain the confidence of international investors, since retirements represent almost 60 percent of the Federal Government’s expenses and this year it is estimated that the system’s deficit will be 80 billion dollars.
The initial norm provided for the establishment of a minimum retirement age of 65 years, with at least 25 years of contributions, but then it was accepted to lower the age to 62, for women and 15 years of contributions, in addition to different schemes for private employees, public and rural workers. It is expected that the text of the project will suffer new alterations.
The economic team tried to make various changes to the original project, but so far has not managed to convince all the sectors involved.
News in Brief
Montt Global Magazine p21