Argentina: Senate approves controversial labor market reform in Argentina | EUROtoday

In Argentina the Senate has a controversial one Labor market reform lastly adopted by President Javier. The Chamber of Parliament authorized the legislation on Friday night (native time) with 42 votes to twenty-eight. Two senators abstained. This is a vital success for the market-liberal President Milei. Citizens and commerce unions protested, generally violently, in opposition to the legislation for days.

Since taking workplace in December 2023, Milei has ruled with strict austerity measures. He received a transparent victory within the midterm elections in October 2024, which is seen as a mandate for his financial restructuring.

The labor market reform will now, amongst different issues, enhance the permitted day by day working hours from eight to 12 hours, prohibit the suitable to strike and cut back compensation funds within the occasion of dismissals. According to the federal government, the reform is meant to spice up funding, create jobs and enhance investor confidence. ​

Congress additionally handed a brand new price range

The Senate had already authorized the legislation for the primary time in mid-February, as did the House of Representatives. The closing vote on some modifications has now taken place within the Senate. On the identical day, Congress additionally handed the 2026 price range by a vote of 46 to 25. Accordingly, plans Argentina Government spending of $102 billion and expects progress of 5 % with inflation of 10.1 %.

Milei describes himself as an “anarcho-capitalist.” Since taking workplace, he has lower spending in authorities businesses and the state equipment and eradicated subsidies. This gave Argentina its first price range surplus in 14 years, and inflation fell considerably. The draw back of austerity measures features a decline in financial output, job losses and cuts in pensions.