Politics Economy Local 2026-01-30T16:55:44+00:00

Argentine Government Willing to Review Labor Reform

Argentina's government is willing to review parts of President Milei's labor reform but resists governors' demands for an income tax cut, creating legislative tension.


Argentine Government Willing to Review Labor Reform

The National Government is willing to review some points of the Labor Reform bill, one of President Javier Milei's key priorities, but resists modifying the reduction of the Income Tax demanded by governors. According to Noticias Argentinas agency, the issue was present during the last Thursday's 'mesa chica' meeting, which was convened at the last minute on Wednesday, although there is still no decision. 'The governors are against the tax cut. It's a delusion, but we haven't defined ourselves yet,' stated a participant in the exchange held in the ground floor offices of the Ministry of the Interior. Similarly, those who must negotiate with the actors, such as Interior Minister Diego Santilli, must listen to the demands and offer -limited- solutions to accumulate support that allows the ruling party to score another legislative victory. In the same position are the head of the La Libertad Avanza bloc in the Senate, Patricia Bullrich, and the head of the Chamber of Deputies, Martín Menem, who must coordinate with allied legislators who also make some public reservations about the draft designed by Ministers Luis Caputo (Economy) and Federico Sturzenegger (Transformation and Deregulation of the State). The decision not to yield on the reduction of Income Tax for companies, which would affect provincial revenue, seems to be the majority position in the small circle designated by the libertarian, although it converges with the awareness of having to appease the governors. In the meantime, the Executive's interlocutors are militating the project not only in contact with provincial leaders, senators, and deputies but also in activities aimed at clearing up doubts from the involved parties. In this task, La Libertad Avanza (LLA) has promoted a series of activities such as the last Thursday's roundtable to answer the doubts of sectors that have some reservations, such as business leadership. Internally, the Chief of Staff, Manuel Adorni, called a new meeting of the table for next Wednesday after the start of extraordinary sessions, which will begin on Monday. The new debate will take place on the eve of the scheduled law treatment on Wednesday, February 11th.