Congress to advance Milei's reform agenda during World Cup

While public attention remains focused on the World Cup in the United States, Canada and Mexico, Argentina’s Congress is pressing ahead with a legislative agenda packed with economic, regulatory and political initiatives. 

Before the mid-year recess, President Javier Milei’s government wants to pass a series of measures, including his so-called ‘Super RIGI’ investment incentive scheme, a settlement of outstanding debt with holdout credits, the regulation-slashing ‘Ley Hojarasca’ bill and changes relating to private property rights.

In the second half of the year, meanwhile, the Milei administration’s priority will shift to a sweeping electoral reform bill, a new mental health law and changes to other sensitive areas, such as disability policy, university education and economic regulation.

The government’s legislative road map combines bills driven directly by the Casa Rosada, some of which have already begun their passage through Congress and which the administration believes are strategic measures designed to consolidate its programme.

During the World Cup

Among the initiatives closest to reaching the floor are reforms to legislation governing expropriations, evictions and land ownership. The latter push would eliminate historical restrictions on foreign ownership of rural property in a bid to attract foreign investment and increase market freedom.

Also on the agenda is a bill to settle Argentina’s outstanding debt with two remaining holdout funds that dates back to the 2001 default. The proposal has already secured Senate approval and must now be considered by the lower house Chamber of Deputies, where the government hopes to debate it alongside the so-called ‘Super RIGI’ bill, which is viewed as one of the administration’s key tools for attracting investment.

The so-called ‘Ley Hojarasca’ will begin committee consideration in the Senate this week. The bill has already secured initial approval in the Chamber of Deputies and forms part of a sweeping package promoted by Deregulation & State Transformation Minister Federico Sturzenegger.

The outlook is more complicated for the ‘Ley de Lobby’ outlined by the Milei administration. Although the bill remains under consideration in the lower house, it faces resistance from both civil society organisations and business chambers, raising the possibility that debate could take longer than expected.

Bills aimed at preventing digital gambling addiction and repealing the ‘Ley de Etiquetado Frontal,’ which regulates the packaging of goods, especially food, were introduced in the Senate at the end of May and are awaiting consideration.

Neither proposal has yet begun committee discussions, making it possible that debate could be postponed until after the World Cup.

Sturzenegger's package

The second half of the year is expected to be marked by a new wave of deregulation measures promoted by Sturzenegger’s portfolio.

Among them is a proposal to allow over-the-counter medicines to be displayed and sold in supermarkets, kiosks and neighbourhood shops – a measure that has already drawn criticism from sectors of the pharmaceutical sector.

Also under consideration is the controversial reform of Law 19,492, which governs domestic cabotage and would allow foreign-flagged vessels to operate on the country's internal river routes.

Another bill seeks to reshape the property market through the liberalisation of rules governing estate agents and auctioneers. The proposal would remove the requirement for professional licensing in property transactions, allowing anyone to act as an intermediary without formal accreditation.

The agenda also includes Argentina's accession to an international patent treaty, a commitment undertaken during negotiations with the United States that remains under technical review.

Electoral reform

Things will get even more interesting later in the year, when the Milei administration attempts to change the rules for elections.

The Casa Rosada's original objective was to eliminate the PASO primaries, although government officials acknowledge they currently lack the votes in Congress needed to achieve that goal. As a result, Presidential Chief-of-Staff Karina Milei is examining alternative options such as suspending the primaries or introducing a voluntary system that would not oblige political forces to stage preliminary votes.

However, the debate will extend well beyond the future of the PASOs. The proposed reform package includes a series of changes that would alter key aspects of Argentina's electoral framework.

Among them are the incorporation of the ‘Ficha Limpia’ anti-corruption bill, restrictions on public campaign financing, greater scope for private donations, stricter requirements for the registration of political parties, the elimination of free broadcast advertising slots, the addition of a full-ticket option for the Boleta Única de Papel and an end to mandatory presidential debates.

According to congressional sources, debate on the proposal is expected to begin formally in the Senate in August. However, allied and moderate opposition sectors are pushing to separate the introduction of Ficha Limpia rules from the wider reform package, to prevent it from becoming tied to a broader political negotiation and force.

Mental health, disabled, universities

The Milei government's legislative plans for the coming months also include measures relating to social and health policy. 

One of the most significant measures is a new mental health law that would grant psychiatrists greater authority to decide on the involuntary hospitalisation of patients, altering key aspects of the current framework.

In addition, the ruling party intends to pursue reforms of Argentina's university funding and disability emergency laws, two measures approved by Congress but whose implementation remains mired in political and budgetary disputes.

The debate comes amid growing tensions over public education, marked by university protests, lecturers' pay demands and warnings about the deterioration of university funding.

Likewise, disability organisations continue to press demands relating to benefits, funding and the implementation of public policies.

– TIMES/PERFIL