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Argentina’s Congress Opens Extraordinary Sessions for Labor Overhaul as Governors Weigh Revenue Hit

Governors’ concerns over losses from proposed tax changes could decide whether Milei’s priority bills clear a fragmented legislature.

Overview

  • Lawmakers began an extraordinary session period through February 27 focused on a labor reform and changes to the juvenile criminal code, formalized by Decree 24/2026.
  • Provincial leaders explored a joint meeting to address the labor bill’s impact on Impuesto a las Ganancias and coparticipated funds, with some warning they will not accept further revenue losses.
  • The ruling bloc intensified vote negotiations, as La Libertad Avanza convened its deputies and Patricia Bullrich courted Senate allies ahead of a potential February 11 debate.
  • Economy Minister Luis Caputo said electricity and gas tariffs will rise monthly at rates above inflation, and the government bought US$808 million in SDRs to prepare an IMF payment.
  • INDEC director Marco Lavagna resigned after the CPI methodology update was postponed, drawing calls from PRO figures to protect the statistics agency’s credibility.