The Government withdrew from the Private Property Inviolability project the chapter that modified the Land Law after verifying that it did not have enough votes to pass in the Senate. The decision came less than twenty-four hours before the session called for Thursday and allows the ruling party to continue with the consideration of the rest of the initiative. The reform on foreign ownership was neither approved nor definitively eliminated: it will return to work in committees.
The Casa Rosada had already conceded on its original proposal. The first draft removed the limits for foreign individuals or companies to buy farmland; the latest version increased from 15% to 25% the maximum rural land that could remain in foreign hands in each district. It also maintained the prohibition for foreign states and restrictions in strategic areas, including border zones. Those modifications still weren't enough to retain the support of governors and dialogue-oriented blocs.
The agreement to separate the chapter was communicated by La Libertad Avanza along with sectors of the UCR, the PRO, and provincial forces. Forty-four senators participated and explained that the postponement aims to broaden consensus, not to close the discussion. The session will continue with reforms to the expropriation regime, eviction procedures, the Ley de Manejo del Fuego, and the modernization of the Property Registry, points that the signatories consider sufficiently supported.
The withdrawal showed the pressure power of the allied governors, who distanced themselves despite maintaining channels of negotiation with Javier Milei. It also changed the scenario of a vote that Patricia Bullrich had presented as on track. The leader of the libertarian bloc had defended the incorporated controls and assured that the preliminary approval was guaranteed, but the final count forced the project to be split to protect the session and avoid an open defeat.
The parliamentary dispute collided with a demonstration called by the CGT, the two CTA, and the UTEP for Thursday in front of Congress. The unions decided to maintain it even after the government's backtrack. ATE celebrated the withdrawal as a result of social pressure, while the unions kept their criticisms of the changes regarding land, evictions, and common goods. The protest, therefore, will continue even though the issue that prompted it has temporarily been removed from the agenda.
The Senate will now face two separate decisions. First, it must gather a quorum and vote on the chapters that remained in the initiative; then, the committees will have to decide if there is a formula regarding rural property capable of bringing together the allies who rejected the 25% cap. The Government avoided immediate processing through a concession, but left pending the reform it had presented as a tool to attract investments and strengthened the negotiating power of the provinces.
