Argentina: President Milei Calls Extraordinary Congress Sessions for Key Reforms and 2026 Budget

Milei Convenes Special Legislative Period

President Javier Milei of Argentina has officially called for extraordinary legislative sessions, scheduled to run from December 10 to December 30, 2025. The decision, announced by his chief of staff, Manuel Adorni, aims to accelerate the approval of the government's proposed 2026 budget and a series of critical reforms. This special session will prevent lawmakers from taking their traditional summer vacation, emphasizing the urgency of Milei's legislative agenda.

Key Reforms on the Agenda

The legislative period will focus on three primary areas: the 2026 national budget, comprehensive labor law reforms, and updates to the penal code.

• 2026 Budget: The proposed budget, initially presented on September 15, 2025, outlines a commitment to fiscal balance or surplus and projects the lowest level of national government spending relative to the Gross Domestic Product in 30 years. It also includes a ban on Treasury financing via the Central Bank. Notably, the budget allocates increased funding for key social sectors: pensions are set to rise by 5% above inflation, healthcare by 17% above inflation, and education by 8% above inflation, with 85% of the total budget dedicated to these areas.
• Labor Law Reforms: These reforms are anticipated to encounter significant opposition and potential public protests. Proposed changes include measures to introduce more flexible and potentially longer working days, as well as making hiring and firing processes easier. The government's objective is to modernize labor legislation to foster formal employment.
• Penal Code Reforms: The proposed changes to the penal code are intended to toughen penalties for offenders.

Additionally, the government may also push for a 'fiscal innocence' bill, tax reforms aimed at simplifying the system and cutting up to 20 taxes, and pension reforms focused on long-term sustainability.

Political Landscape and Challenges

President Milei's decision to call extraordinary sessions follows a strengthened legislative position for his administration after a clear victory in the October midterm elections. However, no single party holds an absolute majority in the 257-seat Chamber of Deputies. Milei's La Libertad Avanza (LLA) party, along with its ally, the PRO party, will collectively hold 107 seats. While this bloc can block opposition bills, securing approval for their own legislative initiatives will necessitate forming ad hoc alliances. Opposition parties, particularly traditional Peronist factions, have voiced concerns regarding the compressed timeline for these crucial discussions.