Justice
ruled in favor of the province of Chubut
in the dispute between its governor Ignacio Torres and president Javier Milei.
The ruling of the Federal Court of Rawson No. 1 obliges the national government to
return the co-participation funds
.
These are the 13,500 million pesos that the national State had retained and for which a strong conflict had opened between the national administration and the governors.
The ruling orders the
"cessation of the withholding
that - as reimbursements for loans agreed within the framework of the Trust Fund for Provincial Development - the defendant has been making on the sums that the defendant must receive as Federal Tax Co-participation; this ,
until the refinancing of the debt is completed
and for the maximum period included in the current financial year."
In the second operative paragraph, it urges both parties to arbitrate "means conducive to the cancellation and/or refinancing of the debt, under reasonable conditions, which do not involve the commitment of essential services of the provincial state."
The court's resolution also maintains that by remaining silent regarding the requests for refinancing and debt authorization made by the province of Chubut, the National State
would have lost sight of the constitutional principles
of good faith and federal loyalty, which
prevented adopting untimely measures that affect seriously
to the provinces, in this case Chubut.
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