Argentina's Congress Convenes to Pass Key Economic Reforms

On December 10, 2025, Argentina's newly elected Congress convened a special legislative session at the request of President Javier Milei to advance a series of significant economic reforms. These reforms encompass the approval of the national budget, tax and labor reforms, amendments to the criminal code, and new regulations permitting mining in glacier regions.

This session marks a pivotal moment in President Milei's administration, as it seeks to implement comprehensive reforms designed to stabilize and invigorate Argentina's economy. The proposed measures aim to address longstanding economic challenges, including high inflation rates and fiscal deficits, while also positioning the country for sustainable growth.

Background on President Javier Milei's Administration

Javier Milei, an economist and former congressman, assumed the presidency in December 2023. His administration has been characterized by aggressive economic reforms aimed at stabilizing Argentina's economy, which has faced chronic inflation and fiscal deficits. Key measures have included significant reductions in government spending, deregulation, and efforts to attract foreign investment.

Details of the Proposed Reforms

• National Budget Approval: The government aims to secure approval for the national budget by December, setting the fiscal framework for the upcoming year.
• Tax Reform: The proposed tax reform seeks to simplify Argentina's complex tax system. While specific details have not been disclosed, the administration has previously indicated plans to eliminate numerous taxes, retaining only a select few to streamline revenue collection and reduce bureaucratic overhead.
• Labor Reform: The labor reform aims to increase employer flexibility and reduce severance costs. This initiative has faced opposition from labor unions, which argue that it could undermine workers' rights and job security.
• Criminal Code Amendments: Proposed changes to the criminal code include increasing sentences for serious crimes such as homicide, reflecting the administration's focus on enhancing public security.
• Mining Regulations in Glacier Regions: The government is considering new regulations that would permit mining activities in glacier regions, a move likely to attract environmental concerns and debates over ecological preservation versus economic development.

Political Landscape and Legislative Dynamics

In the October 2025 midterm elections, President Milei's party, La Libertad Avanza, emerged as the largest minority in the 257-member Chamber of Deputies, holding 95 seats. The party also expanded its presence in the Senate. This strengthened position enhances the administration's ability to advance its legislative agenda, potentially overcoming resistance from the Peronist opposition.

Economic Context and Implications

Argentina has been grappling with high inflation rates, which peaked at 289.4% in April 2024. Through stringent austerity measures and fiscal policies implemented by Milei's administration, inflation has been on a downward trajectory, reaching 30.9% annually as of November 2025. However, monthly inflation edged up slightly to 2.4% in November, driven largely by higher beef prices.

The proposed economic reforms are part of a broader strategy to stabilize the economy, attract foreign investment, and enhance Argentina's competitiveness. For instance, the administration has announced plans to revitalize and privatize the country's deteriorating railway system to boost grain and mining exports, aiming to halve freight costs from remote regions.

Social and Societal Implications

The labor reform proposals have sparked opposition from unions concerned about potential impacts on workers' rights and job security. Additionally, the proposed mining regulations in glacier regions are likely to raise environmental concerns, balancing economic development with ecological preservation.

Historical Context and Comparisons

President Milei's reform agenda represents one of the most ambitious economic overhauls in Argentina's history. While previous administrations have attempted various reforms, Milei's approach is notable for its breadth and depth, encompassing fiscal policy, labor laws, and regulatory frameworks. The success of these reforms could set a precedent for other nations facing similar economic challenges.

As Argentina embarks on this critical phase of economic reform, the outcomes of these legislative efforts will be closely monitored, both domestically and internationally, for their potential to reshape the nation's economic landscape.