Argentina debates AySA privatization and economic reforms

In Argentina, the government's push for privatization and economic reform is facing significant scrutiny. Former deputy Maria Jose Lubertino has challenged the privatization of Agua y Saneamientos Argentinos (AySA), warning that the sale of 90 percent of state shares could jeopardize 440 unfinished infrastructure projects and lead to insufficient coverage and increased costs for users.

Simultaneously, Diego Chaher, head of the Agency for the Transformation of Public Companies, defended the administration's strategy before a bicameral commission. He argued that the state should focus on its core functions rather than managing businesses that can be operated more efficiently by the private sector, citing progress in the adjudication of hydroelectric projects.

On the legislative front, Deputy Guillermo Michel has proposed a tax reform aimed at formalizing the economy and supporting small and medium-sized enterprises (SMEs). His plan includes creating a simplified tax regime for micro-SMEs based on a fixed rate of turnover and implementing a dual VAT system to replace the provincial 'Ingresos Brutos' tax, which he claims creates economic distortions.