Buenos Aires Legislature debates project to restrict public company privatizations

A legislative project proposed by La Cámpora is moving through the Buenos Aires Legislature, aiming to increase the requirements for privatizing state-owned companies. The initiative, introduced by Deputy Maite Alvado, seeks to change current regulations so that any privatization process or injection of private capital into companies such as Absa, Aubasa, Astilleros Río Santiago, or Bagsa requires a two-thirds majority vote in the Legislature, rather than a simple majority.

Deputy Alvado argued that the measure is necessary to ensure sustainable development and prevent strategic services from being commodified for the benefit of a few. She noted that private control of strategic goods has historically led to cost reductions that result in poor service quality.

The project has received a favorable report from the Public Services Commission, chaired by Ariel Archanco, with support from various benches including the Radical Civic Union. However, members of the PRO and La Libertad Avanza (LLA) have voiced strong opposition. Opposition deputies characterized the project as an “obstacle to advancing policies for the rationalization of the public sector” and argued it would increase state interference in the private sector.