January 23rd, 2026
1. Extraordinary sessions in February: the ruling party seeks to advance labor reform and gain support
On Monday, President Javier Milei called the National Congress to a new series of extraordinary sessions, which will take place between February 2 and 27. The main focus of the session will be the Labor Modernization Bill, which has already been approved by the Senate and which the ruling party seeks to address without reopening the debate on its substance. At the same time, various business chambers began participating in technical meetings in the Senate with government advisors to introduce specific adjustments to the text. Representatives from CAME, the Argentine Chamber of Commerce and Services, and ADIMRA offered observations on articles related to the severance fund, termination mechanisms, the calculation of severance pay, and the impact on labor costs, especially for SMEs and labor-intensive sectors. In all cases, the proposal was to support the general spirit of the reform, but to reduce gray areas that could lead to increased litigation. The business community’s efforts contrast with the position of the CGT, which decided not to participate in the technical committee promoted by the Senate and began to strengthen political contacts with opposition blocs and allies. With February on the horizon and labor reform as a priority issue, the government is betting that technical corrections agreed upon with the private sector will allow it to maintain support without altering the delicate balance achieved in the upper house.
2. Before global leaders in Davos, Milei confirmed his reform agenda and alignment with the US
President Javier Milei participated this week in the World Economic Forum in Davos, Switzerland, held from January 19 to today, where he outlined the main points of his economic policy and maintained a high-profile agenda with political and business leaders. Before an international audience, the president stated that since the beginning of his administration in 2023, the government has promoted “13,500 structural reforms” aimed at moving toward “a more dynamically efficient economy.” During his speech, Milei rejected state regulation as a mechanism for correcting markets and argued that public intervention was inefficient and unfair. He also questioned socialism and the agendas promoted by international organizations, citing Venezuela as an example, and stated that free enterprise capitalism was not only more productive but also the only fair system from an ethical and moral perspective. The president also referred to the impact of artificial intelligence as a driver of increasing returns and argued that the role of states should be limited to not hindering innovation. During his visit, he participated in the panel “Country Strategy Dialogue on Argentina,” held meetings with CEOs of large companies, and gave interviews to international media outlets such as Bloomberg. He also attended the signing ceremony for the so-called Peace Council, organized by US President Donald Trump, where he reaffirmed his alignment with the United States and took stock of his economic adjustment program.
Perfil: Javier Milei en Davos: “El socialismo suena lindo, pero termina mal”
3. The European Parliament blocked the EU-Mercosur agreement and referred it to the Court of Justice de Justicia
The European Parliament decided to halt the approval of the free trade agreement between the European Union and Mercosur, recently signed in Paraguay, and to refer the text to the Court of Justice of the European Union (CJEU) for assessment of its compatibility with EU treaties and internal regulations. The decision was taken after a close vote in Strasbourg, with 334 votes in favor, 324 against, and 11 abstentions. By sending the agreement to the Luxembourg Court, Parliament effectively froze its processing until the judges issue a ruling, a process that could delay final approval for several months or even more than a year. The MEPs who promoted the measure questioned legal aspects of the treaty, such as the rebalancing mechanism and the legal basis used, warning that they could limit the European Union’s regulatory capacity in sensitive areas such as the environment and health. The decision was welcomed by European farmers’ associations and some governments, including France, which expressed concerns about the impact of widespread trade liberalization on their productive sectors. In contrast, the Argentine government confirmed its intention to move forward with the approval of the agreement in Congress and assured that the European Parliament’s decision does not represent a definitive obstacle, maintaining the treaty as a priority on its legislative agenda.
Los Andes: El Parlamento Europeo frenó el acuerdo UE–Mercosur y lo envío al Tribunal de Justicia
4. EMAE in decline: activity fell in November despite the boost from agriculture and finance
Economic activity showed signs of weakness again in November. According to INDEC, the Monthly Economic Activity Estimator (EMAE) registered a 0.3% decline both year-on-year and compared to October in seasonally adjusted terms, marking the second consecutive monthly decline and the first annual contraction in 14 months. The decline was mainly explained by the sharp collapse of the manufacturing industry, which fell 8.2% year-on-year and was the sector with the greatest negative impact, along with trade (-6.4%) and fishing (-25%). Construction also showed negative figures, with a contraction of 2.3%. Within the industry, the declines in textiles and clothing (-22.7%), motor vehicles (-20.7%), and metal products, machinery, and equipment (-18.2%) stood out. In the latter sector, INDEC reported a 39.7% drop in the production of household appliances, associated with lower local demand and increased imports. In contrast, some sectors managed to cushion the overall result. Ten activities showed year-on-year increases, led by financial intermediation (+13.9%), driven by increased stock market trading, and the agricultural sector (+10.5%). The oil and mining complex also stood out, with growth of 7%. Despite the negative data for November, the EMAE accumulated a 4.5% increase in the first eleven months of the year, although this is the lowest level in the annual series. Looking ahead, projections remain positive: REM analysts estimated average growth of 3.5% for 2026, while the IMF projected expansion of 4%, in a context where industry continues to be the main source of fragility.
El Economista: La actividad no repunta y el EMAE cayó 0,3% interanual
5. Energy and Vaca Muerta, keys to the trade surplus in 2025
The trade surplus in December was once again higher than expected, closing 2025 with a positive external balance of USD 11.286 billion, according to INDEC. With this result, Argentina accumulated 25 consecutive months of surplus and a total surplus of USD 31.248 billion, even in a context of strong recovery in imports. During 2025, exports totaled USD 87.077 billion, with year-on-year growth of 9.3%, mainly explained by a 10% increase in quantities, despite a slight drop in prices. Imports, meanwhile, totaled USD 75.79 billion, with a 24.7% increase, driven by the recovery in volumes, which reduced the surplus compared to 2024, although without eliminating it. December reflected this dynamic: exports reached USD 7.448 billion (+5.7% year-on-year) and imports USD 5.556 billion (+3.5%), resulting in a monthly surplus of USD 1.892 billion, the second-best figure of the year. The key factor was once again the energy sector, which accounted for 47.2% of the positive balance in December and 69.2% of the annual total. The energy balance closed 2025 with a record surplus of USD 7.815 billion, driven by exports of USD 11.086 billion and a sharp drop in imports. With this result, Javier Milei’s government closed its second year in office with twin surpluses, fiscal and external, in a context where the contribution of the energy complex, leveraged in Vaca Muerta, consolidated its position as the mainstay of the external front.
Profesional: Las exportaciones rozaron máximos históricos, pero en 2025 se redujo el superávit comercial