Argentina's Congress Convenes Special Session to Debate Economic Reforms

On December 10, 2025, Argentina's newly elected Congress convened a special legislative session at the behest of President Javier Milei to deliberate on a series of significant economic reforms. The agenda includes the approval of the 2026 national budget, tax and labor law changes, amendments to the criminal code, and new regulations permitting mining activities in glacier regions.

President Milei, who assumed office in December 2023, has pursued a libertarian agenda aimed at reducing government intervention and promoting free-market policies. His party, La Libertad Avanza, emerged as the largest minority in the lower house and expanded its presence in the Senate following a strong performance in the October 2025 midterm elections. This political shift positions the administration to potentially overcome opposition from the center-left Peronist coalition.

The proposed labor reforms seek to increase employer flexibility and reduce severance costs. However, these measures have encountered resistance from unions, which argue that they could undermine workers' rights and job security. The General Confederation of Labor (CGT), Argentina's largest union federation, has expressed concerns that the reforms may erode collective bargaining powers and social protections. In response, state employees and oilseed workers have organized strikes and marches to protest the proposed changes.

Environmental groups have also raised concerns about the new mining regulations that would permit activities in glacier regions, citing potential ecological damage. The government's plan to allow mining in these sensitive areas has sparked debates over environmental preservation versus economic development.

Since taking office, President Milei has implemented a series of bold economic reforms aimed at stabilizing Argentina's economy. Annual inflation dropped from a peak of 289.4% in April 2024 to 30.9% by November 2025, marking the lowest level since June 2018. This deceleration is credited to Milei’s strict austerity measures and fiscal policies. Additionally, the government achieved a budget surplus within the first few months in office by reducing government spending by 30%, which included laying off approximately 52,000 federal employees.

In April 2025, Argentina lifted most of its long-standing currency controls, allowing individuals and businesses to purchase U.S. dollars without restriction and to repatriate profits abroad. The government also reached a $20 billion Extended Fund Facility agreement with the International Monetary Fund to support fiscal consolidation and structural reforms.

Despite these measures, the International Monetary Fund has emphasized that Argentina must implement more assertive monetary and foreign exchange policies aimed at significantly increasing its foreign reserves. This move is seen as crucial to rebuilding financial buffers and regaining access to international capital markets.

The special legislative session is expected to run from December 10 to 31, with the government aiming to secure approval for the 2026 national budget by the end of the year. Labor reforms are slated for discussion soon after, with implementation anticipated in 2026. Tax reform legislation is likely to be introduced in early 2026.

As Congress deliberates on these reforms, the administration faces the challenge of balancing economic stabilization efforts with social and environmental considerations. The outcome of these legislative sessions will significantly influence Argentina's economic trajectory and social landscape in the coming years.