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Argentina Sets Two-Stage Path for Labor and Tax Reforms, Prioritizes Lean 2026 Budget

The interior minister is courting governors to pass a budget that bans central bank financing.

Overview

  • Diego Santilli confirmed the government will split labor and tax changes into two phases, extending debate beyond extraordinary sessions.
  • He framed the 2026 plan as the lowest-spending budget in 30 years and said it prohibits Treasury financing by the central bank, with 85% of outlays directed to pensions, education and health.
  • Santilli accelerated outreach to provincial leaders, meeting Salta’s Gustavo Sáenz and scheduling trips to Mendoza and Neuquén to build votes for the budget and upcoming reforms.
  • The minister called for a “mature” negotiation with unions and highlighted goals to reduce a 52% informal workforce and curb litigation risks that he says burden small and medium-sized firms.
  • He signaled the extraordinary-session agenda will add proposals raised by governors and noted work on a three-tier fiscal overhaul and a Penal Code update targeting corruption.