Javier Milei seeks “second chance” for reform project in Congress

The government of Argentina distributed to parliamentarians and governors a reduced and modified version of the comprehensive reform in search of a “second chance” of approval of the project that was rejected in the Senate earlier this year.

The bill, which ranges from privatization plans for state-owned companies to measures to allow reductions in state subsidies, is a fundamental pillar of President Javier Milei's economic plan, which seeks ways to resolve a serious economic crisis, with inflation above 275 % and central bank reserves close to zero.

The economist, who surprisingly won last year's elections and has only a minority in Congress, was forced to concede his positions to potential political allies after the bill was rejected in February.

“Today we find ourselves faced with a second opportunity,” Presidential spokesman Manuel Adorni told reporters.

According to him, the government was confident of obtaining support. “We are facing a pivotal moment in our history.”

The bill is expected to return next week to Congress for discussion before facing a new round of votes.

The Milei government will have to adopt a more conciliatory approach to carry out its reforms, as the Peronist opposition bloc still holds the largest number of seats in Congress.

The government deleted a key fiscal section of the original bill, part of Milei's promise of a “zero” deficit this year, and watered down some reforms. The administration also intends to adopt tax measures separately.

“We are a government that dialogues, listens and is open to proposals,” said a government official who asked not to be identified, adding that the bill is “99.9% finalized.” “We dialogue with those who want to dialogue.”