Argentina’s most ambitious labor overhaul in decades is now operational. On May 8, 2026, federal judge Macarena Marra GimĂ©nez lifted the injunction that had suspended more than 80 articles of the Milei government’s labor reform. The ruling clears the way for changes to severance rules, collective bargaining, and the balance of power between employers and unions. The CGT, Argentina’s main labor confederation, is keeping its judicial fight alive, but the law is already in force.
The political backdrop is what makes this stick. In October 2025, Milei’s coalition won half the seats in play in the Chamber of Deputies and two-thirds of contested Senate seats, stripping Peronism of its majority in both chambers. That mandate is now being deployed at speed. At the opening of ordinary sessions, Milei announced a package of 90 reforms — ten per ministry — including changes to the Customs Code, the Mining Law, a tax reform being developed alongside Finance Minister Luis Caputo, and the “Educational Freedom Law” that would reposition the state as a “subsidiary” rather than principal organizer of the education system.
The president’s framing in New York during Argentina Week 2026 was striking in its ambition: “We have planned 10 reforms per ministry this year, meaning 90 reform packages that we will bring to Congress to continue making Argentina freer.” He also argued that if Argentina’s country risk fell to around 220 basis points, the economy could grow at 7-8% annually. Whether or not those numbers are realistic, the policy direction is unambiguous: deregulation, opening to trade, lower taxes, and a frontal assault on what Milei calls “the populist model.”
Why it matters: Argentina is running the most aggressive market-liberalization experiment in the Western Hemisphere right now. The labor reform’s survival in court was the key procedural test. If the broader 90-reform agenda lands even halfway, Argentina becomes a case study other Latin American center-right governments will study — or copy. Investors are already pricing in the optionality.
đź”— Primary source: Resumen Latinoamericano — Labor reform enters into force after ruling against CGT đź”— Deep dive: El Cronista — Milei’s 2026 priorities: treaties, patents and pending reforms