May 29th, 2026
1. The government sent a new package of bills to Congress
Just before the long weekend began, the national government submitted a new package of four bills to Congress with political, economic, and social implications; these initiatives had been announced last Friday by Chief of Staff Manuel Adorni. Firstly, the Chamber of Deputies received the bill on the Incentive Regime for Large Investments in New Industries (or “Super RIGI”), which establishes a system of incentives, legal certainty, and regulatory stability for projects involving at least USD 1 billion in investment in the development of new economic activities; as well as the bill on transparency and disclosure of interest representation (or Lobbying), aimed at regulating and ensuring transparency in interactions between public and private actors to prevent conflicts of interest in public decision-making. Secondly, the government sent to the Senate initiatives on gambling addiction, aimed at addressing the issue of online betting and gaming, and the repeal of the current Food Front-of-Pack Labeling Law (which removes the octagons, eliminates restrictions on the use of children’s characters, and moves toward a “more accurate, adaptable, and technically consistent nutritional information system”). With this third legislative package of the year, the ruling party is aiming to reach the end of the first half of the year while maintaining the political initiative, seeking to shape the parliamentary agenda around its own priorities and prevent the opposition from setting the agenda.
Ámbito Financiero: Ingresó al Congreso el paquete de proyectos de Javier Milei de Súper RIGI, ludopatía, Etiquetado Frontal y Ley de Lobby
2. The Central Bank’s reserves reached their highest level since 2019
The Central Bank’s (BCRA) international reserves reached a new nominal high on Tuesday during Javier Milei’s administration, surpassing USD 47 billion for the first time—and by a wide margin—marking their highest level in nearly seven years. This milestone was achieved thanks to the $1 billion sent by the International Monetary Fund (IMF) after approving the second review of the current agreement, albeit with several recommendations and issues to be addressed. That assessment included a waiver for failing to meet the reserve accumulation target set out in the original pact, even though that requirement had already been revised downward. That inflow, combined with the now-routine daily purchases via interventions in the local foreign exchange market and the appreciation of certain assets held by the BCRA, boosted total reserves. The current level, the highest since October 9, 2019, should hold at least until the next debt payment to bondholders, scheduled for 40 days from now, given the BCRA’s ongoing purchases.previsto para dentro de 40 días, dadas las persistentes compras que realiza el BCRA.
La Nación: Entró el giro del FMI y las reservas del Banco Central marcaron el nivel más alto desde 2019
3. The IMF recommends a comprehensive overhaul of Argentina’s tax system
The International Monetary Fund (IMF) drafted a series of recommendations to overhaul Argentina’s tax system and thereby increase government revenue. This proposal emerged as part of the “Article IV” review, an economic surveillance report that the IMF published following the second review of its agreement with Argentina. The agency’s guidelines focused on broadening the tax base, simplifying the tax system, and moving toward a comprehensive medium-term tax reform, which involves both modifying existing taxes and phasing out taxes considered distortive. The IMF proposed five main pillars for transforming Argentina’s tax system: reducing tax expenditures, broadening the income tax base, reforming the Monotributo regime, simplifying the corporate income tax (CIT), and strengthening special taxes. The Fund thus proposes to unify VAT rates with specific compensation measures for vulnerable households, reduce preferential tax regimes, and eliminate exemptions that do not serve a clear social purpose; lower the income threshold so that at least 20% of workers pay income tax; align the self-employment tax system with the general tax system, reducing the impact of income thresholds, and standardizing tax rates and social contributions; establish a minimum tax based on revenue, supplemented by a flat 30% rate on corporate income tax; and adopt a mixed system that combines specific taxes with value-based levies on products such as tobacco, alcohol, and sugary drinks, prioritizing specific rates and a simplified value-based structure. The IMF considers that the current system exhibits high levels of complexity, heavy reliance on distortionary taxes, and multiple special regimes that erode the tax base and reduce collection efficiency.
4. Javier Milei and Luis Caputo spoke to business leaders at the Latam Economic Forum
President Javier Milei attended the Latam Economic Forum, alongside leaders from the public and private sectors. In his closing remarks at the end of the day, the president reviewed the highlights of his administration and outlined the key elements of his economic plan for the remainder of his term. “Although many may not realize it, our government makes a constant effort to explain to the citizens where we are and where we are headed. This effort is neither capricious nor random; it has a concrete purpose. We want Argentines to be able to take advantage of the opportunities the country presents to them,” the President told the business leaders. Milei highlighted the decline in the country’s risk rating (below 500 points) and stated that the country “deserves” a “much better” credit rating. In an optimistic tone, he assured: “Credit is growing strongly. We may see a bit of a zigzag in the indicators, but the trend is clear. Argentina is heading toward a scenario of lower inflation and higher growth,” and added: “Eliminating inflation is a necessary condition for growth, but not sufficient. Monetary stability and macroeconomic order, while essential, are not the engine of growth.” Earlier in the day, Economy Minister Luis Caputo stated that the economy will see a cumulative growth of 20% over the course of Javier Milei’s term. In a speech in which he negatively addressed the media, discussed inflation, investments, dollar rates, and taxes, and presented a forecast tied to the electoral context: “2027 will be an atypical year; the economy is going to sweep politics aside.” He also stood by the fiscal surplus policy and insisted on the idea of tax cuts.
El Cronista: Javier Milei: “Argentina va a un escenario de menor inflación y de mayor crecimiento”
5. The Government Confidence Index fell for the sixth consecutive month
Javier Milei’s administration saw another drop in public confidence in May, according to the Government Confidence Index compiled by Torcuato Di Tella University. The index stood at 1.99 points, down 1.6% from April, a month in which it had already posted a sharp decline of 12.1%. In the year-over-year comparison, the decline reached 18.7%, reflecting a progressive political erosion of the libertarian administration. The index, which UTDT publishes monthly and constructs based on five evaluation dimensions, showed particularly marked declines in May in the areas of “Honesty,” “Competence,” and “Concern for the public interest.” At the sociodemographic level, the sharpest declines in positive perception were recorded among women, people with a primary school education, the 30- to 49-year-old age group, and among those who believe the economic situation will remain the same or worsen in the coming year. However, despite the sustained decline in recent months, the ruling party maintains relatively high levels of support compared to other presidential terms. According to the UTDT survey, confidence in the Milei administration stands at levels similar to those recorded at this point in their terms by the administrations of Néstor Kirchner and Mauricio Macri. Furthermore, support remains stronger in provinces linked to agro-industrial, mining, and energy activities.
Perfil: La confianza en el gobierno de Javier Milei cayó por quinto mes consecutivo