Argentina’s newly elected Congress opens special legislative sessions on Wednesday, a potentially decisive moment for President Javier Milei as he seeks to fast-track a range of reforms he says are needed to steer the country on a better economic path.
This comes just after the midterm elections in October, where the ruling party, La Libertad Avanza, performed well.
The outcome made the party the largest minority in the lower house and added to its gains in the Senate.
Milei’s supporters claim that his achievements have made it possible to bypass the centre-left Peronist coalition, which had previously stifled progress.
For most of the first half of Milei’s presidential term, Congress represented a challenge: opposition lawmakers rejected key initiatives and fended off presidential vetoes.
The new round of sessions is a fresh test of Milei’s capacity to turn electoral gains into legislative results.
A reform agenda focused on the budget, labour, taxes, and the criminal code
Milei expects Congress to discuss and pass a national budget in the coming months, as well as legislation allowing mining in glacier areas and major revisions to the labour, tax, and penal codes.
According to political expert Julio Burdman, “the government has favourable conditions to approve all of these reforms, both in the Chamber of Deputies and the Senate, thanks to broader blocs and potential alliances.”
The administration sees the budget as the cornerstone of its legislative program.
According to a government source, it is expected to be passed in December, allowing debate on labour reform to begin shortly thereafter.
While discussions may begin this year, the insider stated that the reform is unlikely to pass before 2026. Tax reform is also on the table, though specifics have yet to be disclosed.
It is expected to streamline the tax structure, but specifics will not be available to Congress until the early part of next year.
Labour reform faces organised resistance
Unions have emerged as a strong opposition to Milei’s labour policies. They are opposed to a plan that would allow firms to be more flexible with their working hours and vacation arrangements.
The administration also wants to change the severance pay system in a way that it claims will lower expenses for businesses.
Labour organisations have harshly attacked these moves, portraying them as dangers to long-standing safeguards.
Despite the opposition, Milei appears set to proceed. Officials say that modifying employment standards is critical to lowering structural costs and boosting private-sector hiring.
Whether the government can preserve political support as labour tensions escalate will be a key question during the special sessions.
Criminal code changes and glacier-area mining
The government has also suggested changes to the penal code, including longer penalties for some offences, such as killing.
The administration’s proposed revisions are part of a larger effort to modernise and strengthen the criminal justice system.
In the meantime, Congress will debate new regulations that would permit mining in glacier zones.
The idea is part of Milei’s broader effort to expand economic prospects in sectors the administration says are constrained by existing rules.
Given the environmental concerns surrounding glacier regions, the discussion is likely to be heated.
Vote counting and building alliances
Beginning Wednesday, La Libertad Avanza will control 95 of the 257 seats in the Chamber of Deputies, just ahead of the Peronists, who hold 93.
To pass its proposals, the ruling party will need 34 more votes.
Government officials expect to secure this backing through partner parties, depending on the stronger blocs that emerged following the October elections.
As the special sessions begin, the administration hopes that its improved parliamentary standing will result in long-awaited political successes.
Whether Milei can negotiate opposition pressure, union resistance, and internal negotiations will have long-term consequences for his reform agenda and the country’s economic policy orientation.
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