Overview
- Argentina’s Senate advanced the 2026 Budget to a December 26 floor debate and, following lower-house pushback, excluded Chapter XI that sought to revoke university funding and disability laws.
- The Milei government faces a political crisis after allied deputies rejected Chapter XI and tensions escalated with PRO leaders over late-night Auditor-General appointments, putting final approval at risk.
- Labor reform, initially slated to advance with the Budget, was postponed to February 10 as the ruling bloc seeks votes and negotiates with governors and unions.
- The EU delayed the Mercosur–EU pact, reshaping the Foz de Iguazú summit agenda as Milei presses for a looser Mercosur to pursue bilateral deals; Argentine officials cite a tentative January window with Paraguay floated as host.
- Bolivia’s President Rodrigo Paz declared an economic emergency and removed fuel subsidies, lifting gasoline prices by 86% and diesel by over 160%, while the vice president vowed legislation to overturn parts of the decree.