February 13th, 2026
1. Labor reform: The government secured preliminary approval in the Senate
With 42 votes in favor and 30 against, the government obtained preliminary approval from the Senate for the Labor Reform, after weeks of negotiations with governors, dialogue groups, and union representatives. The bill was approved in general terms early Thursday morning and will now be sent to the Chamber of Deputies. The final text incorporated multiple modifications to the original proposal. Among the agreed changes are the elimination of the article that reduced income tax, the segmentation of the Labor Assistance Fund (FAL) to differentiate between small and medium-sized companies, the exclusion of virtual wallets as a means of payment for salaries, the continuity of mandatory union dues without an expiration date, and the ratification of the 6% contribution to social welfare programs. In addition, the initiative creates a system of severance pay financed by business contributions to cover compensation, introduces a time bank scheme to make working hours more flexible, enables agreements to split vacations, and modifies the labor litigation regime with limits on expert opinions and judicial criteria. The transfer of labor jurisdiction to the City of Buenos Aires was also approved. The vote reflected broad agreement among La Libertad Avanza, the PRO, the UCR, and provincial blocs, while the Unión por la Patria interbloc concentrated the rejection. In this particular case, the articles were approved by title, with a minimum of 38 votes in favor in the final chapter repealing special statutes, such as that of journalists. The ruling party celebrated the preliminary approval as a step toward reducing informality and litigation, while the opposition anticipated an intense debate in the Chamber of Deputies.
2. Deputies gave preliminary approval to the EU-Mercosur Agreement
The Chamber of Deputies approved the Trade Agreement between the European Union and Mercosur with 203 votes in favor, 42 against, and 4 abstentions. The initiative received cross-party support, although Unión por la Patria voted along party lines. With preliminary approval, the bill is now ready to be considered by the Senate. The Upper House has already activated the legislative process and convened the constituent meeting of the Foreign Affairs Committee, which will be responsible for issuing an opinion once the text is formally submitted. The definition of authorities was set for Wednesday, the 18th, at 5 p.m., and a new meeting is expected to be convened that same day or on Thursday, the 19th, to move forward with the analysis of the treaty. At the same time, on Thursday, February 19, at 11 a.m., the Agreements Committee will be formed, which will appoint its chair and discuss the proposed appointment of Fernando Iglesias as ambassador to Belgium and, consequently, to the European Union. The ruling party plans to include the agreement in the session scheduled for Thursday, February 26, along with the Juvenile Criminal Justice System and the Glacier Law, which has already been approved. The agreement will come into force once at least one Mercosur country and the European Union ratify it. If approved by Argentina, it will require ratification by a European country to come into force. However, in Europe, the European Parliament cannot ratify the agreement until the Court of Justice of the EU has ruled on it, but legally, the European Commission (EC) could decide to start applying it provisionally without waiting for the European Parliament.
La Nacion: Los puntos clave del acuerdo comercial entre Estados Unidos y la Argentina
3. INDEC published CPI and basic basket data
The National Institute of Statistics and Censuses (INDEC) reported that inflation in January was 2.9%, the first official figure for 2026, amid controversy over the methodology used to calculate the Consumer Price Index (CPI) and the postponement of the basket update. With this result, the year-on-year variation reached 32.4%. The record confirmed that the disinflation process is facing difficulties in breaking through the 2% monthly threshold, which the government considers key to consolidating stabilization. According to the official report, food and non-alcoholic beverages led the increases with 4.7%, followed by restaurants and hotels with 4.1%, while education and clothing showed the smallest variations. At the same time, the Total Basic Basket (CBT) and the Basic Food Basket (CBA) registered increases of close to 6% in January. A typical family needed more than $1,360,000 to stay above the poverty line, while the indigence threshold also showed a significant increase. The release of the CPI reignited the debate over the official decision to maintain the current methodology, based on the 2004-2005 expenditure survey, despite the fact that the new index was ready. The government defended the postponement and argued that disinflation continues, although January showed an acceleration compared to December and there have now been six consecutive months of increases.
El Litoral: Fuerte salto de la canasta básica en enero, que presiona sobre los umbrales de pobreza e indigencia
4. Dollar down and reserves up: what explains the exchange rate dynamics
The official dollar continued its downward trend in February despite currency purchases by the Central Bank. The wholesale exchange rate has fallen by nearly 3% so far this year and is approaching the $1,400 level, a low not seen since mid-October. While the official exchange rate falls, the BCRA continues to accumulate reserves through purchases in the single, free exchange market, in a context of high currency supply. Factors cited by analysts include private and provincial debt issues, settlements from the agro-export sector, and a weaker global dollar, all of which contribute to downward pressure. The return of carry trade, with positive real rates in pesos, also encouraged investors to sell foreign currency to position themselves in local assets, added to the absorption of pesos via Treasury placements. At the same time, the gap between the official exchange rate and financial dollars remains contained, a figure that the market is closely monitoring along with the evolution of international reserves. However, experts warn that exchange rate stability will depend on the continuity of currency flows, the global context, and monetary policy, and may prove fragile if financial conditions change.
5. The government regulated the tax innocence regime
The government regulated the Tax Innocence Law, a regime that modifies the treatment of national tax obligations with respect to undeclared assets and funds and establishes conditions for regularizing them without certain criminal tax penalties. The objective of the regime is to facilitate the regularization of assets, reduce litigation, and simplify compliance with formal tax obligations. The regulations incorporate the principle of presumption of tax compliance and provide for a simplified regime for taxpayers who meet certain income, asset, and activity level requirements, mainly individuals who are not large taxpayers. The scheme does not eliminate taxes or formal tax obligations, but rather modifies the scope of penalties, interest, and liabilities in cases of omission of information, provided that a voluntary declaration is made within the established deadlines. The regime provides for transitional benefits such as the exclusion of criminal tax liability and accessory fines if the established conditions and deadlines are met, and sets out specific requirements for the filing of amended returns and payment plans. The territorial scope of the law will depend on the provinces’ adherence for the purposes of their own related taxes, as subnational jurisdictions may maintain their own tax investigation and penalty mechanisms. The implementation of the national regime was subject to AFIP regulations and to the conditions, deadlines, and exclusions established by said regulations for its application.