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Argentina Congress to hold special session over economic reforms

There has been a week of protests by labor unions, tenant groups and leftist organisations against the proposed reforms
There has been a week of protests by labor unions, tenant groups and leftist organisations against the proposed reforms

Argentina's government has scheduled emergency sessions of parliament beginning next week to address a package of controversial reforms by President Javier Milei, who has ordered a broad deregulation of the economy.

Mr Milei himself issued the call late yesterday for Congress to open an extraordinary session from 26 December through 31 January 31 next year.

It follows a week of protests by labor unions, tenant groups and leftist organisations against the reforms contained in a presidential decree that needs an endorsement by legislators.

The main focus is the libertarian Mr Milei's mega-decree that changes or scraps more than 350 economic regulations in a country that has grown accustomed to heavy government intervention in the market.

Among the reforms, the text repeals the law on rents, which would abolish the established price ceiling.

It also eliminates some worker protections and laws that shield consumers from abusive price increases, at a time when inflation exceeds 160% per year and the poverty level has surpassed 40%.

Mr Milei's "chainsaw plan" to cut state spending - he waved around a working chainsaw while on the campaign trail this year - triggered a series of street protests against the government over the past week, without major incident.

It also provoked calls by labor unions for demonstrations next Wednesday in which leaders will present requests to courts to challenge Mr Milei's decree as unconstitutional and to seek an injunction halting its effects.

The decree can be overturned if it is rejected by both houses of Congress, according to experts. Otherwise it comes into force on 29 December.