Argentina's Milei sees 'second chance' for pared back reform bill

Argentina's Milei sees 'second chance' for pared back reform bill

Argentina's government has circulated a pared back version of its sprawling omnibus reform bill to lawmakers and governors after Congress rejected it earlier this year, a spokesperson for President Javier Milei said on Wednesday.

The bill, which includes plans to privatize state entities and measures to allow reductions in state subsidies, is a key part of Milei's plan to fix a severe economic crisis in which inflation is over 275% and net foreign reserves near zero.

The economist and former pundit, who had a shock election win last year and only has a minority in Congress, has been forced to compromise with potential political allies on the bill after it was rejected in February.

"Today we find ourselves with a second chance," presidential spokesman Manuel Adorni told reporters, adding the new draft of the bill was circulated late on Tuesday. The government was confident it would win support, he said.

The bill is expected to go back to congressional committees as early as next week before a new round of voting. It eventually needs approval by both chambers of the legislature.

The process underscores that Milei's government is having to take a more conciliatory approach to reforms as the opposition Peronist bloc still holds the largest number of seats in Congress.

The government has removed a key fiscal section of the original bill - part of Milei's pledge for a "zero" deficit this year - and watered down some reforms. It plans to pursue the fiscal measures separately.

"We are a government that dialogues, listens and is open to proposals," a government official said, asking not to be named. The official said the draft bill was "99.9% finalized".