January 9th, 2026
1. The agreement between Mercosur and the European Union has been approved and is awaiting official signing in Asunción
The Council of the European Union approved the free trade agreement between the European Union and Mercosur. The vote was held virtually on Friday and resulted in approval by a qualified majority among the ambassadors of the 27 member states. Although France, Ireland, Hungary, and Poland had already announced their rejection of the agreement, Italy’s support proved decisive: the Italian government described the treaty as “very important” and highlighted the guarantees it includes for the protection of European farmers. With this decision, European Commission President Ursula von der Leyen is formally authorized to sign the agreement on behalf of the European Union, an act that, according to Argentine Foreign Minister Pablo Quirno, will take place on Saturday, January 17. However, the procedure is not yet complete, as the European Parliament must give its consent for the treaty to enter into force. If there are no obstacles, the agreement is expected to come into force towards the end of 2026. The agreement is the largest free trade agreement ever signed by Mercosur and will create an integrated market of more than 700 million people, representing about 35% of world trade and more than 30% of global GDP.
La Nación: Mercosur firmará “acuerdo histórico” con UE el 17 de enero: cancillería argentina
2. Labor reform: the Senate has set a date for the session, while Diego Santilli begins the first round of negotiations with governors
The national government began working on the schedule for extending extraordinary sessions, with the aim of voting on labor reform in the Senate. The bill, which has already been approved, could be debated in the chamber on Tuesday, October 10, or Wednesday, October 11. Meanwhile, negotiations are beginning to take shape: Interior Minister Diego Santilli traveled to the province of Chubut to visit Governor Ignacio Torres and formally begin a round of visits and negotiations with various provincial leaders with the aim of securing votes for the legislation in both the Senate and the Chamber of Deputies. His goal will be to strengthen ties, receive complaints, and achieve a plan that confirms support. The main objections focus on the chapters referring to income tax and tax reduction, which are directly related to the provinces’ shared revenue collection, and the repeal of certain laws that, according to the opposition, “have nothing to do with the reform,” including the journalist’s statute and the elimination of INCAA funding, among others.
3. Argentina returned the funds it had received from the currency swap with the US Treasury
In December, the Central Bank of Argentina (BCRA) canceled the entire activated tranche of the swap with the US Treasury. This amounts to approximately US$2.5 billion, which was part of the bailout that Donald Trump extended to Javier Milei’s government in the run-up to the legislative elections. This was confirmed today by Scott Bessent and the Argentine Central Bank itself. The US Treasury Secretary confirmed the news via his “X” account: “I am pleased to announce that, reflecting its strengthened financial position, Argentina has quickly and fully repaid its limited use of the swap with the United States, so that the Exchange Stabilization Fund (ESF) currently has no pesos. Stabilizing a strong U.S. ally and generating tens of millions in profits for Americans is a great achievement of the ‘America First’ initiative.” Those were the words on social media, and he clarified that the ESF operated exactly as Congress had intended, providing timely support to Argentina in a crisis scenario characterized by severe short-term liquidity stress and elevated risk to exchange rate and financial stability.nciera.
4. The Central Bank secured a loan from international banks for US$3 billion to pay off maturing debt
The Central Bank of Argentina (BCRA) announced that it had obtained a US$3 billion REPO loan from a group of six international banks, with a one-year term and an annual interest rate of 7.4%. The transaction was closed in light of Argentina’s imminent debt payment of US$4.2 billion to private bondholders, which is due at the end of this week. BCRA spokespeople said that the entity will not disclose which “six leading international banks” participated in the transaction. However, sources in the financial sector said that Citi, JP Morgan, BBVA, Santander, Bank of China, and Deutsche Bank are on that list. With the confirmation of the loan, the government has finally answered the question that has been on everyone’s lips in market analysis in recent months: where would the money come from to meet this week’s deadline? Although there was no doubt in the market about Argentina’s willingness to pay, the strategy for meeting the commitment was unclear.
5. With the Cabinet in recess, Javier Milei focuses his work on the global agenda
With much of the national cabinet on vacation (most ministers are expected to return on the 15th of this month), President Javier Milei is taking advantage of the relative solitude of the Quinta de Olivos to draft the speech he will give at the next World Economic Forum meeting, as he did in both 2024 and 2025. This event brings together the world’s leading businesspeople, political leaders, and opinion makers, among other personalities. It will take place, as usual, in Davos, Switzerland, from January 19 to 23. The theme of the meeting will be “Spirit of Dialogue,” focusing on the need to rebuild trust and broaden perspectives in a changing world, bringing leaders together to discuss and find solutions to global challenges through cooperation, according to the Forum’s organizers. Meanwhile, the official agenda resumed on Thursday, when the president received the president of the Community of Madrid, Isabel Díaz Ayuso, with whom he shares ideological views, at the Casa Rosada. Ayuso arrived from Punta del Este, where she spent a few days on vacation with her partner. One of the main topics of conversation between the two was the crisis in Venezuela, as, like Milei, Ayuso has in recent days supported the removal of Nicolás Maduro by the United States.
Ámbito: Con el Gabinete de receso, Javier Milei enfoca su trabajo en la agenda global y la economía