Argentina is planning to establish limited liability companies for artificial intelligence businesses. This announcement came from Federico Sturzenegger, Argentina’s Minister of Bureaucratic Dis-regulation, speaking to the “Frankfurter Allgemeine Sonntagszeitung”. Sturzenegger stated that the objective is to revise company law to allow companies founded entirely on artificial intelligence, and which do not employ human staff, to register as limited liability entities.
When asked about potential risks associated with this development, Sturzenegger offered a cautious hope that Europe might maintain its current stance, even though the Netherlands was the country that originally invented limited liability companies. He argued that if Europe does not make these changes, it risks losing its AI production capability, while Argentina will move ahead. He asserted that Argentina will be the first nation to adopt such regulations, predicting that “these will be fascinating debates as they come upon us”.
Sturzenegger, who refers to himself as Javier Milei’s “chainsaw” provided a summary of the deregulation policies implemented so far. He noted the abolition of 15,000 regulatory obligations. According to him, the Argentine state will never again incur a budget deficit, and inflation has been successfully reduced from 200 percent to 30 percent. Furthermore, the poverty rate initially jumped to 57 percent but has since lowered to 28 percent. During Milei’s first two years, the economy grew by ten percent, recovering from fifteen years of stagnation.
As an example of successful deregulation, Sturzenegger cited the rental market. Under the previous administration, a law existed that dictated every detail of a lease agreement, including prohibiting landlords from adjusting rent throughout the year. In a country experiencing 200 percent inflation, this led landlords to pull their properties off the market. Since the deregulation initiated by Milei, inflation-adjusted rents have fallen by 30 percent.
Regarding the accusations of corruption leveled against Manuel Adorni, a close confidant of Milei, Sturzenegger argued that the best way to combat corruption is by reducing the size of the state. He reasoned that every government regulation creates an opportunity for corruption. Concerning Javier Milei himself, Sturzenegger described him as a nun, specifically a Franciscan monk, who is completely uninterested in material wealth and focuses solely on Argentina.
Finally, when asked whether Germany could learn from Argentina’s model, Sturzenegger cautioned against asking an Argentine for economic advice. He remarked that they should ask the nation that for many years was the worst student in the entire class, explaining that this very poor track record is precisely why they decided on such radical change.
