The enactment of the 2026 Budget strengthened investors' confidence in Javier Milei's government's economic course
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Financial markets began the last week of the year with a positive reaction to the main political and economic development of recent days: the approval of the 2026 Budget in Congress. The so-called "law of laws," enacted on Friday the 26th by the Senate, consolidated a relevant legislative victory for Javier Milei's Government and reinforced expectations of continuity for the program of fiscal order and discipline in public spending.
Although the approval took place with markets already closed, the impact began to be reflected in the first trades of the week. For investors, the Budget constitutes a concrete signal of predictability, sustained fiscal surplus, and commitment to macroeconomic targets, which are central pillars of the libertarian economic program.
Argentine ADRs rise on Wall Street
In a context of slight weakness in the U.S. pre-market, Argentine stocks that trade in dollars showed an outstanding performance on Wall Street. By mid-morning, Grupo Galicia's ADRs were up as much as 3.5%, Pampa Energía was rising 2.8%, YPF was gaining 0.4%, and Banco Supervielle was posting an improvement of around 0.3%.
The behavior of Argentine assets contrasts with the general caution of global markets and reinforces the idea that investors are closely monitoring domestic political signals, especially those linked to fiscal sustainability and the reduction of macroeconomic risk.
Mercados: las acciones argentinas suben hasta 3% en Wall Street tras la aprobación del Presupuesto 2026
Bonds on the rise and country risk near lows
Optimism also spread to the fixed-income market. Global bonds traded with average gains of 0.2%, while country risk as measured by JP Morgan stood at around 580 basis points, very close to the floor of 560 units recorded in January.
Market participants emphasize that the approval of the Budget reduces political uncertainty and improves the perception of the Argentine State's solvency, which is a key factor for the evolution of country risk and access to financing in the medium term.
Political strengthening and expectations of structural reforms
In addition to the Budget, the Senate approved the Fiscal Innocence law, another central initiative of the ruling coalition. Analysts stress that legislative support consolidates the Government on the political front and opens a window of opportunity to move forward, starting in February, with structural reforms long demanded by the market, such as labor and tax reform.
Mercados: las acciones argentinas suben hasta 3% en Wall Street tras la aprobación del Presupuesto 2026
The approved Budget also authorizes the Treasury to issue debt under foreign law, although the Ministry of Economy made it clear that the strategic objective is to gradually reduce dependence on Wall Street and strengthen the local capital market.
Fiscal Innocence and remonetization of the economy
Max Capital highlighted to Infobae that the Fiscal Innocence law doesn't constitute a traditional tax amnesty, but it establishes a new framework that facilitates annual transactions below 100 million pesos, promoting formalization and the use of undeclared dollars within certain limits.
The Government is betting that this measure will boost a remonetization of the economy, will incorporate foreign currency into the formal circuit, and will support the recovery of activity, in line with a gradual but consistent strategy of economic normalization.
A reaction aligned with the economic course
Although some analysts point out that part of the approval was already priced in, the market consensus is that the enactment of the 2026 Budget reinforces the credibility of the economic program and consolidates the path of fiscal stability.
In a year marked by adjustment, the correction of imbalances, and the ordering of public accounts, the reaction of the markets once again shows that macroeconomic consistency and political predictability are central assets for Argentina.
