Javier Milei’s administration was compelled to retract another component of its private property legislation prior to its enactment, highlighting the difficulties faced by the Argentine president in drawing private investment to the nation beset by crises. The bill passed the Senate in a 37-33 vote early Friday morning following an extensive debate; however, Milei’s party eliminated a crucial section that aimed to relax land-use restrictions in the wake of a fire, whether intentional or not. The government had already removed the bill’s central element on Wednesday, which relaxed restrictions on foreign property ownership. Protesters gathered outside Congress to express their opposition to the legislation, engaging in confrontations with security forces who deployed tear gas, rubber bullets and water cannons to disperse the crowds.
Pop stars, actors, and various public figures have aligned with leftist politicians and labour unions in their accusations against the government, alleging an attempt to sell off Argentina’s land. The backlash against the bill represents a significant factor influencing Milei’s public image. In July, 62 percent of Argentines expressed disapproval of the president, marking an increase of four percentage points from June. In contrast, 37 percent viewed him favourably, as reported. Milei’s original bill, introduced in March, removed restrictions on foreign land ownership, lifting the existing cap of 15 percent at the national, provincial, and departmental levels.
A version introduced this week raised the limit to 25 percent; however, that section was subsequently eliminated in response to the uproar. Provisions within the legislation would facilitate the eviction process and streamline property recovery following state acquisition, representing an effort to stimulate investment after prolonged periods of interventionist state policies that have limited property values. “While Milei retains a solid shot at re-election, his approval rates are far from compelling. Even if the manufacturing drag eases somewhat, he’s unlikely to enjoy a smooth path to a second term. Lingering uncertainty should continue to weigh on Argentine assets through the vote,” said Jimena Zúñiga.
The private property bill was regarded by certain government officials as an indicator of potential electoral reform aimed at eliminating, or at the very least suspending, primaries for the 2027 presidential election. Markets are closely monitoring that reform, as it is anticipated to enhance Milei’s prospects for re-election and mitigate the market volatility that often disrupts Argentina’s economy during the extended electoral phase. The bill is set to proceed to the lower house for an additional vote.