Argentina: Milei administration faces political fallout after legislative concessions

The Argentine government is facing political challenges following the legislative process of the Inviolability of Private Property Law. While the project was approved in Congress, the administration had to make significant concessions, such as removing the chapter regarding the foreign ownership of land, to secure votes. This negotiation resulted in a perceived loss of political capital and significant backlash on social media.

In response to the legislative setbacks and economic pressures, the administration is shifting its strategy toward increased negotiation with provincial governors. Chief of Staff Diego Santilli has begun meetings with various regional leaders to rebuild political alliances.

Additionally, the legislative agenda of the Ministry of Deregulation, led by Federico Sturzenegger, has been placed on pause. Internal friction has emerged within the cabinet, with reports of dissatisfaction regarding Sturzenegger’s approach to budget cuts and the political cost of his proposed reforms. To manage this, Karina Milei is reportedly seeking stricter oversight, requiring that future deregulation projects be vetted by Diego Santilli and the political leadership before reaching the legislative floor.