February 20th, 2026
1. The Chamber of Deputies approved the labor reform, and the bill returns to the Senate for final review
With 135 votes in favor and 115 against, the ruling party managed to pass the labor reform bill in the Chamber of Deputies and complete the 26 sections of the bill, after a session that lasted until 2 a.m. The initiative was approved after just three working days of debate, although with a key change that will require a new review in the Senate. The only point modified was the elimination of Article 44, referring to the sick leave regime, included in Title I, which introduces changes to the Labor Contract Law (LCT). This deletion, incorporated to guarantee the necessary support, means that the text must return to the upper house. The most controversial chapter was once again Title XXVI, which repeals various professional statutes, including that of journalists. As in its first passage through the Senate, the vote was close: it was passed by 126 votes to 119, highlighting the strong polarization around this point. La Libertad Avanza thus managed to move forward with its labor modernization project in record time. In the Senate, the Labor and Social Security and Budget and Finance committees have already issued a ruling with 12 signatures, leaving the text ready for consideration on the floor next Friday, the 27th. If the schedule is met, the reform could be approved before the opening of the new regular session.
Clarín: Con apoyo de los gobernadores, Diputados aprobó la reforma laboral y definirá el Senado
2. Milei traveled to the US again to participate in the Board of Peace
President Javier Milei participated yesterday in the US capital in the session of the Board of Peace, an initiative promoted by Donald Trump, where he reaffirmed Argentina’s international alignment and offered the collaboration of the White Helmets in humanitarian assistance tasks, especially in Gaza. During the meeting, Trump once again publicly expressed his support for the Argentine president and recalled the support given in the 2025 elections, consolidating the political harmony between the two governments. The trip took place in parallel with the debate on labor reform in Congress and in a context of internal tension. In addition, the forum sought to project an agenda of international cooperation in the face of global conflicts. This is Milei’s latest visit to the United States, a country he has traveled to at least 14 times since taking office in December 2023, making him the Argentine democratic president who has traveled most frequently to that destination in his first two years in office. After a brief stay, the president will return to the country to resume his domestic agenda and plans to return in March to participate in Argentina Week, as part of economic and investment promotion activities.
Canal26: Trump volvió a respaldar a Milei en el Consejo de la Paz en Washington: “Apoyo a este caballero”
3. The government began 2026 with a fiscal and trade surplus, but faces challenges in tax collection
Public accounts began 2026 with a surplus in January and consolidated the official fiscal balance strategy. According to the National Public Sector report, the month closed with a primary surplus of $3.13 trillion and a financial surplus of $1.11 trillion, even after debt interest payments. The result was mainly sustained by sharp spending cuts, with significant declines in public works, economic subsidies—especially for transportation—and current transfers. Extraordinary revenues linked to privatizations also contributed. However, economists warn that tax collection is showing signs of slowing down, raising questions about the sustainability of the fiscal result in the coming months. At the same time, the external front provided additional positive data. The trade balance recorded a surplus of USD 1.987 billion in January, driven by a year-on-year increase in exports and a contraction in imports. The favorable balance extended the positive results in foreign trade and contributed to strengthening foreign exchange accumulation. Thus, the year began with a double surplus—fiscal and trade—a key factor for the government’s economic roadmap, although challenges lie ahead in terms of revenue and activity.
Infobae: Superávit fiscal: los desafíos que enfrenta el Gobierno y con qué vía puede sumar ingresos extra
4. Wholesale inflation slowed and construction increased 2.3% in January
Wholesale inflation rose 1.7% in January, slowing down compared to December and falling below the Consumer Price Index (CPI) for the same month. The data comes from the Internal Wholesale Price Index (IPIM) and reflects a moderation in the rate of price increases at the beginning of 2026. According to the official report, the variation was mainly due to increases in domestic products, while imported goods showed a more limited dynamic. In year-on-year terms, the indicator remains at high levels, although below the highs recorded during 2024. At the same time, construction costs in Greater Buenos Aires rose 2.3% in January and accumulated a 24.9% year-on-year increase, driven by rises in materials and labor costs. The data shows that, despite the slowdown in wholesale prices, certain sectors continue to experience specific pressures. Analysts point out that the evolution of the wholesale CPI is relevant because it tends to anticipate movements in retail prices. However, they warn that the eventual transmission to the final consumer depends on factors such as demand dynamics, competition, and inflation expectations.
BAE Negocios: La inflación mayorista bajó a 1,7% en enero y desaceleró frente a diciembre
5. Closure of historic company Fate: conflict and 920 layoffs
The Fate tire factory announced the permanent closure of its plant in San Fernando and the total cessation of activities, affecting 920 workers who were left unemployed following the company’s decision. According to the dismissal letter sent to employees, the company attributed the measure to an “economic and production crisis” that makes it unfeasible to continue operating the plant, despite previous attempts at reorganization. The workers argue that the measure contradicts the mandatory conciliation ordered by the Ministry of Labor, which sought to open a channel of negotiation between the company and the Argentine Tire Workers’ Union (SUTNA). Faced with the escalating conflict, the labor ministry ordered a 15-day mandatory conciliation period with the aim of reversing the situation and initiating dialogue between the parties to avoid mass layoffs or seek alternatives to closure. However, as of today, the factory remains closed and padlocked. The case comes amid structural difficulties for the local manufacturing industry, marked by falling domestic demand, competitive pressure from imports, and a long history of labor tensions in the tire sector. The closure of the Fate plant represents not only the loss of jobs, but also a focus of concern about the sector’s competitiveness.