The government’s hope of receiving half the sanction before the end of the year would be disappointed

The delay in sending the project Work modernization Javier Milei’s signing this Thursday will have an impact on the ambitions of the government, which hoped to celebrate 2026 with half the approval of the Senate. However, The governing party itself is already starting to plan a debate that will last until February.

Basically, Victoria Villarruel has already formalized the call for parliamentary work for next Tuesday at 11 a.m. with the intention form at least the “Budget” and “Work and Forecast” committees. While it is doubtful whether progress can be made in the areas of mining, energy and fuels, and justice and crime, it is questionable whether Glaciers Law reform and the new penal code can move forward.

The intention of the ruling party is Next Wednesday, the committee will begin considering the proposal sent by the executive branchwhich is already causing a stir not only in the toughest parts of the opposition, but also among dialogueists. Basically, the attention is on the chapter entitled “Tax Amendments”, which, according to the interpretation of legislators from different areas, would require that the proposal must be submitted by MPs, since Article 52 of the Constitution states that the creation and amendment of taxes must begin in the House of Commons.

Beyond this point, the main obstacle to fulfilling the wishes of the Secretary General of the Presidency is, Karina Mileiwhich has pushed for the proposal to receive a half-sanction before the end of the year, now are the times.

According to reports, more than 100 invitation requests were received this Thursday from professionals, union members and economic chambers. The intention of Patricia Bullrichwho will chair the working committee that will direct the treatment of the project, should clean up the list in order to shorten the times. It remains to be seen to what extent the former security minister can shorten the guest list.

Bullrich assures that negotiations are “going well” so that the proposal is moving forward in committee and the plan is being implemented, but among allies there is caution because they are still studying the small print of the project, but also concern because they understand that the deadlines are tight.

Among the radicals and the PRO, they view the spirit of reform positively, but there is no predisposition to advance an explicit process for labor reform, which, if it leads to setbacks in the future, will be difficult to change. For this reason, apart from the concerns of the Casa Rosada, the dialogueists see little chance that the proposal will receive a half-sanction within this period of exceptional measures. “We will take the necessary time,” warned a senator he consulted Clarion.

The senators have avoided taking a position on the project presented by the government for the time being, with the exception of the Peronist bank led by José Mayans, who, after receiving the new leadership of the CGT, confirmed their rejection of the initiative. This Thursday he met with representatives of the Autonomous CTA led by Hugo “Cachorro” Godoy, general secretary of the workers’ CTA led by Hugo Yasky, and the round of meetings with the unions is expected to continue.

The point is that the position of the unions can mark this timing that the ruling party must win the work modernization law. For now, La Libertad Avanza (LLA), which has a bloc of 21 senators with the incorporation of Luis Juez through an Interbloc, could count on some allies of the UCR and the PRO.

However, it is completely uncertain how Santa Cruz senators José Carambia and Natalia Gadano will position themselves, such as Edith Terenzi from Chubut, allied with Governor Ignacio “Nacho” Torres, and Flavia Royón from Salta. Even the senator who presented this Thursday her monobloc Primero los Salteños expressed the need to promote the modernization of labor contracts in order to attract investments and create new jobs, but made it clear that it would be a mistake to move forward “with haste and improvisation”.

If in reality the government added its troops along with the 3 from the PRO and the 10 from the UCR, it would be only 3 votes away from winning half the sanction and would have a group of 10 senators who could be crucial to the definition. This group includes the Santiago residents of Gerardo Zamora, the Neuquén who responds to Rolando Figueroa, the missionaries who have a direct line with Carlos Rovira and the Tucumán-Beatriz Avila who became part of the group team by Osvaldo Jaldo.

For this reason, Bullrich maintains the expectation that he will be able to fulfill the first task that the Casa Rosada has given him with his landing in the Senate, where he is also balancing to avoid exacerbating the internal conflict with Villarruel after a start with some short circuits.

If it passes the Senate filter, the proposal will go to the deputies, where Martín Menem and especially the government will have to negotiate to obtain the votes. But that will be for later.

Various sections of the opposition stood at the crossroads of the government-sponsored labor modernization project and questioned its acceptance by the Senate, believing that it should have been submitted to the Chamber of Deputies since it involves tax changes.

The controversy was sparked by a chapter entitled “Changes to the Tax Laws,” which, as explained by the Senate, repeals tax provisions.

The truth is that this article caused concern even among the allies of the PRO and the UCR, since it proposes changes to VAT and income tax. Strictly speaking, the proposal provides for a reduction in income tax for both SMEs and large companies for the years from January 1, 2026. VAT exemption is provided for electrical energy used in irrigation systems in the agro-industrial sector.

The Federal Conviction bloc, through Carolina Moisés from Jujuy, insisted that the project must be submitted to the House of Commons in accordance with Article 52 of the Constitution, since it is a tax proposal.

“Before debating the content, we have an institutional obligation to ensure that the procedure is constitutional. If the executive takes into account tax matters, the Senate cannot open the treatment,” warned Moisés.

The senator joined the call of United Provinces MP Esteban Paulón, who called on Chief of Staff Manuel Adorni and Vice President Victoria Villarruel to withdraw the work modernization bill and submit it to MPs.

According to the Santa Fe man, the initiative includes reforms to fees and contributions as well as changes to profits and sales tax.

According to the constitution, any change in tax matters must be considered by the House of Commons, although in this case the ruling party argued that it was not achieved because no new tax is being created.