Milei is preparing the most ambitious reform package since the return of democracy

President Javier Milei is preparing to launch the most decisive stage of his administration: an ambitious package of structural reforms aimed at essentially transforming the country's labor, tax, and pension foundations. The initiatives are already being designed in key ministries and will be the focus of the new legislative cycle that begins in December after the parliamentary turnover. With the economy stabilizing and growing public support, Milei is on track to consolidate a true institutional revolution that, if approved, will mark a historic turning point.

The initial step was taken this Tuesday with the launch of the May Council, a multisectoral body composed of political, business, and union leaders, whose goal is to build consensus on long-term policies. However, behind closed doors, the real decisions are already being discussed among the technical teams of the Human Capital, Economy, and Deregulation ministries, under the direct coordination of Sandra Pettovello, Luis Caputo, and Federico Sturzenegger.

The latter, one of the intellectual architects of the libertarian program, is also part of the Council along with the general secretary of the UOCRA and CGT leader, Gerardo Martínez, who confirmed that labor reform was a topic of conversation with the Executive:

"CGT will bring its proposal and we'll have the opportunity to be heard," he stated from Casa Rosada. The president of the Argentine Industrial Union (UIA), Martín Rappallini, also expressed willingness for dialogue and raised the need to update the collective bargaining system: "Surely everyone understands that each sector needs to be modernized. In other countries, there are annual or biennial changes, and we have greater rigidity."

The immediate priority for the Government is to move forward with labor and tax reforms, considered essential to boost formal employment and reduce the costs of the productive system. According to a senior strategist from the ruling party: "Both are essential to reduce the incentives to employ someone informally. What needs to be done here is to increase the taxpayer base."

Informality, a true bottleneck for development, reached a peak of 42.6% in the third quarter of 2024, according to INDEC data. In the last measured quarter, that figure dropped slightly to 42%, suggesting the beginning of a correction in line with the Government's economic policy. However, unemployment rose to 7.9% in the first quarter of 2025, reflecting a labor market in transition.

On this front, the President was emphatic in a recent interview with LN+: "We've already made progress, now the parties have the power to negotiate among themselves. We've already made 2,500 reforms, we're going to keep making more until we become the freest country on planet Earth." He added with political realism: "We also have to get these through Congress. For some, I have muscle, for others I don't. Non-Peronist governments are held to a higher standard."

The pension reform, meanwhile, will have to wait. According to an unquestionable source from Balcarce 50: "For the pension reform, the labor market timeline doesn't allow you to reach 2026."

Behind this roadmap is also a complex political architecture. The possibility of passing the reforms is closely tied to the 2025 election results, where La Libertad Avanza aims to expand its parliamentary representation. In this context, Casa Rosada is closely monitoring the movements of its partners and allies.

During the session in which preliminary approval was given to the pension and disability increase, the Government paid special attention to the abstentions of nine deputies linked to Mauricio Macri. This gesture was interpreted as a warning in the context of the negotiations over legislative lists. "We got Mauricio's message," acknowledged a key operator from the ruling party.

The same is happening with certain governors who, although collaborative in management, face La Libertad Avanza in the electoral arena. The conflict is not only about the distribution of resources, but also about the political control of their provinces.

This tug-of-war between government and party strategy reflects internal tension within the ruling coalition. While Javier and Karina Milei lead the libertarian project in its entirety, the day-to-day government is in the hands of presidential advisor Santiago Caputo, while the electoral strategy is organized from the space led by Martín and Eduardo "Lule" Menem.

That apparent split is now seen as complementary: "The party side now ends up being key for the government. These are governors we clash with over provincial positions, when what we really need is to secure votes in Congress next year," stated a prominent voice within the President's inner circle.