A Week of Setbacks and Realignment
The Argentine national government is navigating a period of recalibration after a series of legislative missteps and sectoral conflicts forced it to backtrack on measures promoted by the Ministry of Deregulation.
On August 7, 2026, the Argentine Senate gave preliminary approval to the Law on the Inviolability of Private Property with a tight vote of 37 in favor and 33 against. However, the ruling coalition was forced to withdraw two of the most controversial chapters from the original bill: Chapter III on the Land Law (foreign ownership) and Chapter IV on the Fire Management Law.
The decision to pull these chapters, promoted by the Minister of Deregulation, Federico Sturzenegger, came amid strong social and political backlash. Artists such as Tini Stoessel and Lali Espósito publicly opposed the indiscriminate sale of land to foreigners, in a climate of nationalist fervor following the 2026 FIFA World Cup. Security Minister Patricia Bullrich fought until the last moment to save the initiative, but at midnight she confirmed to the political leadership chat: 'The votes are not there.'
The Port Conflict and Internal Reorganization
Another flashpoint of the week was the conflict with naval pilots (prácticos), which paralyzed foreign trade after a decree inspired by Sturzenegger was signed. The decree was annulled after causing millions in losses, highlighting a lack of coordination within the libertarian leadership.
To prevent further self-inflicted damage, Karina Milei (the president's sister and key advisor) and Chief of Staff Diego Santilli are now centralizing the political agenda through a working group. The goal is to vet future deregulation proposals before sending them to Congress, with an eye on the upcoming 2027 elections.
The Visit of Pope Leo XIV
Amid political tension, the Casa Rosada received what it considers a diplomatic triumph: confirmation of the visit of Pope Leo XIV to Argentina from November 8 to 11, 2026. The Pontiff will tour Buenos Aires, Córdoba, and Luján.
The government hopes that the ties of Chancellor Pablo Quirno and Minister Sandra Petovello with the Vatican will help soften any social messages the Pope might deliver, as his encyclical advocates for social doctrine and job protection. There is even talk of offering River Plate's stadium for the massive event.
Focus on the Economy and Inflation
The government is trying to shift attention to the economy. The Central Bank (BCRA), acting on behalf of the Treasury, intervened in the foreign exchange market to keep the wholesale dollar below 1,500 ARS.
The market expectations survey (REM-BCRA) projects that July inflation, to be released on August 13, will come in between 1.9% and 2%, although in Buenos Aires City the figure already hit 2.9%, driven by tourism. The government believes this uptick is temporary and remains committed to lowering inflation heading into 2027.