The Argentine Congress enacted the Law reforming the economy and the State of Argentina.

After several months of debate, on Friday, June 28^th, the Argentine Congress enacted the law titled “Foundations and Starting Points for the Freedom of Argentinians” and fiscal measures (the “Law”).

The Law declares public emergency in economic, administrative, financial, and energy matters for one year, and delegates certain powers, related to said matters, to the executive power for said term. The purpose of this measure is to enhance transparency and the functioning of the State, reduce its oversizing structure, and ensure internal controls within it.

The main topics of the Law include:

• Privatization of companies which are mostly or fully owned by the State
• A General reform of the State
• Modification of the Administrative Procedure Law
• Amendment to Private and Public Employment laws.
• Permits the renegotiation or termination of contracts and transactional agreements with the State
• Empowers the executive branch to grant concessions for public works, infrastructure and public services.
• Incentives for employment registration and updating of employment laws
• General reform of the regulation of the energy market
• Incentive Regime for Large Investments granting fiscal, foreign exchange, and legal benefits for 30 years to investments of more than USD 200 million.
• Tax measures related to the tobacco industry.
• The fiscal measures include modifications to the undeclared assets, individual taxpayers, and tax moratorium, among other reforms.

The Executive Branch will then pass and promulgate the Law and thereafter the Law will be published in the Official Gazette. The Law will enter into force in accordance with the legal timeframe.