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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Argentine Chamber of Deputies approves Milei's labor reform amid tensions and celebration.
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Deputies approve Milei's labor reform with 135 votes in favor

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The Chamber of Deputies approved Javier Milei's labor reform with 135 affirmative votes and 115 negative ones, in a session marked by tensions and an incident involving Deputy Florencia Carignano. The bill, which includes changes to indemnities and contracts, returns to the Senate for final approval on February 27 after the removal of the article on medical leaves. The ruling party celebrated the progress as a step toward labor modernization.

Several provincial governors without libertarian leanings supported President Javier Milei's controversial labor reform during Congress's extraordinary sessions. Despite their peronist or traditional opposition backgrounds, their backing was crucial for the Government's legislative wins. This support contrasts with prior rejections and stems from electoral and economic factors.

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Interior Minister Diego Santilli announced that the government will push a tax reform in Congress in coming months. The plan aims to deepen tax cuts and involve national, provincial, and municipal levels. He made the statements at the AmCham Summit 2026.

Despite former candidate Franco Parisi's call to reject President José Antonio Kast's megarreforma, some Partido de la Gente (PDG) deputies are open to supporting it. Bloc leader Juan Marcelo Valenzuela met with Interior Minister Claudio Alvarado to discuss the bill. Parliamentarians like Javier Olivares and Cristian Contreras expressed willingness to vote for it if it benefits Chileans.

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President José Antonio Kast's government has delayed entry of its controversial 'National Reconstruction Plan'—recently renamed the 'economic reactivation reform'—into Congress until next week. Initially announced in March with an expected April 1 entry, the postponement allows final reviews and shifts focus to school security following a deadly incident in Calama.

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