The Minister of Economy defined this as a “historic opportunity” for the country and asserted that it can grow over the next 30 years.
November 12, 2025 – 2:50 p.m.
Minister of Economy, Luis CaputoI participated in Foundation for Latin American Economic Research (FIEL) Annual Conferencewhere he provided details on the government’s progress on the following issues: Work style reform and outlined the main aspects of economic planning. Furthermore, it is Comprehensive tax reformwarns that it is not yet possible to abolish certain high-levy taxes.
In his presentation, Caputo defined the current moment as: “Historic opportunity” With the necessary social and political support, “Argentina can become the fastest growing country in the next 30 years,” he said.
Three priority projects of the government
The Minister of Finance said: Main tasks of the new National Assembly They will focus on three initiatives:
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budget law,
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Law regarding the presumption of financial innocenceand
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labor reform lawwill be the core of the structural reform package.
Centered on work style reform
Caputo explained that the executive branch’s labor proposals will be supported. three basic pillars:
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Reducing burden on employers We are working on three points with the aim of promoting formal recruitment and reducing employment costs.
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Alternative to compulsory retirement benefitsfor an alternative system that reduces lawsuit and the costs associated with layoffs.
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New employment incentive systemwith the aim of creating new jobs and regularizing workers.
The minister said the new system would “enable more flexible and predictable employment relationships” and promised that the government would work to “reduce costs without impacting rights”.
Tax reform: prudence and gradualism
Regarding, tax reformMr. Caputo asked for expectations to be tempered, explaining that although he has medium-term goals, he said: Simplify the system and eliminate the most distortionary taxesdue to the weight in the collection, we cannot proceed immediately.
In his eulogy, he said: total income (local in nature), check taxes, agricultural withholding tax and corporate income tax. “Today they provide the bulk of the financial resources, so they are very expensive to eliminate,” he acknowledged.
He also warned that the changes would be implemented gradually and in line with economic growth, as premature cuts could “break the fiscal anchor”. He emphasized, “Although there is a simplification of taxes, it is the taxes at the heart of the system that will be most distorted.”
growth and fiscal balance
Caputo argued: “Tax increases are not an option”and argued that the government’s strategy is to generate growth to truly increase revenue. “In order to lower taxes, the country needs to grow,” he explained, adding that if the economy could manage to grow. 6% per yearthe fiscal surplus is allocated to. “Returning resources to the private sector”.
Meanwhile, the Minister said: 2027 budget debateand our management team’s continued commitment. International Monetary Fund (IMF) hold Basic surplus sufficient to cover interest on debt. “There’s no doubt about it,” he said.
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