What does the reform of the expropriation law promoted by Milei consist of?

After the favorable ruling for Argentina in the trial for the expropriation of YPF, President Javier Milei announced the sending to Congress of a bill to modify the expropriation law. The initiative seeks to prevent the country from facing million-dollar litigation such as the one at stake in recent years

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The president warned that an adverse resolution in that case could have entailed a cost close to 18 billion dollars, which would have represented a major blow to the economic recovery. Within this framework, the Government decided to move forward with structural reform to limit this type of state intervention.

The official proposal focuses on strengthening the protection of private property, restricting expropriations to “strictly exceptional” situations and establishing clearer criteria for their application. As explained by the Executive, the objective is to eliminate discretion and provide greater

legal predictability.

Among the main changes, the project establishes that the value of the assets must be calculated before any alteration resulting from the expropriation process, avoiding distortions in valuation. In addition, it incorporates independent evaluation mechanisms and requires the publication of the criteria used to determine the price

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Another key point is that the compensation must be paid in cash and in full before the transfer of the property takes place, unless the affected party accepts another form of payment. It is also contemplated updating the amount using the inflation index and the recognition of interest until definitive cancellation

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The initiative also limits temporary occupations, which can only be arranged by the Executive Branch and for a maximum period of 60 days, without the possibility of extension. This point aims to prevent abuses and ensure that state interventions are not prolonged indefinitely

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The Minister of Deregulation, Federico Sturzenegge r, also defended the project, pointing out that the protection of private property is a fundamental pillar for progress. As he explained, the reform seeks to correct accumulated distortions and lay the foundations for attracting capital in strategic sectors such as energy, mining

and agriculture.

With this legislative advance, the Government is trying to close one of the most costly chapters in recent history and send a clear signal to the future: establish predictable rules, reduce political discretion and guarantee conditions that favor investment and sustained growth.