On Sunday, Javier Milei will address the Congress of Argentina to set the economic agenda for his government as they head toward 2026. His anticipated 40-minute speech is expected to highlight the importance of '50 structural reforms' that his party, La Libertad Avanza, views as essential to navigating the current economic landscape marked by monetary tightening and a favorable dollar exchange rate. Despite an expected growth rate of 4.4% in activity for 2025, concerns remain that this growth is not translating into tangible benefits for the populace, particularly within the context of rising costs and business closures driven by factors such as the 'FATE effect' and inflation accelerating to nearly 3% in January.

In the upcoming session, Milei is expected to announce key measures that aim to alleviate financial pressures on the middle class, indicating a shift in strategy that could resonate with voters facing financial challenges. A prominent legislator has emphasized the commitment to eliminating barriers, reducing taxes, and curbing excessive regulations that have contributed to economic stagnation. The Senate's anticipated approval of a significant labor reform could bolster Milei's agenda, providing him with the momentum needed to implement these structural reforms effectively.

The implications of these proposed reforms are significant, as they could transform the economic landscape of Argentina. However, the success of Milei's initiatives will depend on political support within Congress and public reaction to the proposed changes. As the government strives to create a more favorable economic environment, it is crucial to monitor how these reforms impact the middle class and overall economic growth in a country grappling with high inflation and business closures.