Government activates seduction plan with governors to approve labor reform

Chief of Staff Manuel Adorni led the year's first officialist political table meeting to devise a strategy ensuring the labor reform's approval in Congress. Interior Minister Diego Santilli will start a tour of key provinces like Salta, Neuquén, and Entre Ríos to negotiate compensations amid unrest over Income Tax changes. This effort aims to address governors' concerns who are conditioning support on fiscal adjustments.

On Friday, at the Casa Rosada, Chief of Staff Manuel Adorni led the year's first Libertarian political table meeting, focusing on approving the labor reform. Participants included Interior Minister Diego Santilli, La Libertad Avanza Senate bloc leader Patricia Bullrich, and ministers Luis and Santiago Caputo. Over two hours, they outlined an 'outreach' plan to governors for support in both congressional chambers.

The main hurdle is the adjustment to Income Tax scales, a coparticipable tax reducing provincial revenues. Governors like Salta's Gustavo Sáenz, Neuquén's Rolando Figueroa, and Entre Ríos' Rogelio Frigerio demand economic compensations to offset resource losses. One official sector proposes tailored solutions per province, while harder-line voices argue the reform will yield overall benefits through job creation.

To proceed, Santilli will begin his tour on Monday in Salta with Sáenz, continue on Wednesday in Neuquén with Figueroa, and end Thursday in Entre Ríos with Frigerio. Additionally, he met Thursday in Mendoza with Governor Alfredo Cornejo, who raised infrastructure and public works claims. The tour already featured visits to Chubut with Ignacio Torres to monitor forest fires and to Chaco with Leandro Zdero, who pledged support. However, a planned meeting with La Pampa Governor Sergio Ziliotto was postponed for personal reasons, per the government, though La Pampa sources say it was Casa Rosada's decision; it will be rescheduled soon.

The labor reform is the top legislative priority for Javier Milei's administration in the first quarter, ahead of bills like the Glaciers Law and Penal Code reform, deferred to March. This approach acknowledges the need for provincial consensus, crucial for congressional majorities as in prior Budget votes.

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Interior Minister Diego Santilli shakes hands with Governor Marcelo Orrego in San Juan during labor reform talks.
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Santilli meets Orrego in San Juan over labor reform

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Interior Minister Diego Santilli met Thursday in San Juan with Governor Marcelo Orrego to advance labor reform. Both agreed on the need for regulatory changes to boost private employment and economic growth. Orrego expressed willingness to seek consensuses for the project.

The Argentine government, with Diego Santilli as the new Interior Minister, is intensifying dialogues with provincial governors to advance the 2026 Budget and labor and tax reforms. Santilli has already resigned as a deputy and started meetings at the Casa Rosada. However, doubts arise over congressional alliances following the departure of legislators aligned with Patricia Bullrich.

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Javier Milei's government is pushing for approval of its labor reform in the Senate by early February, convening opposition leaders. Meanwhile, Salta Governor Gustavo Sáenz warns of fiscal impacts on provinces, and Peronism presents an alternative project without a unified stance.

In the latest pushback against President Javier Milei's labor reform—following CGT's December backlash and Plaza de Mayo march—union leaders met Buenos Aires Governor Axel Kicillof to voice concerns over job losses from economic adjustment and criticize the bill as regressive. The national government dismissed the meeting's significance.

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President Javier Milei convened his cabinet to a meeting at the Quinta de Olivos on Monday, including an asado, to assess 2025 management and outline priorities for 2026. The gathering aims to solidify the unity of the renewed team and advance key reforms such as the Inocencia Fiscal law and the 2026 Budget. It highlights internal reorganization and legislative strategy amid economic achievements.

Gabriel Boric's government included provisions in the public sector readjustment bill restricting civil servant dismissals, drawing criticism from president-elect José Antonio Kast's team, who call them a breach of trust. Arturo Squella, Republican Party president, warned that these measures undermine relations between administrations. The executive defends them as formalizing existing rules.

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Chile's Finance Ministry has summoned opposition advisors for a Monday virtual meeting to explain the public sector adjustment bill's controversial 'tying' clause, following initial backlash from president-elect José Antonio Kast's team. The session aims to smooth congressional processing from January 5, while the presidential office orders political appointees to take pending vacations before March's government handover.

 

 

 

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