Milei guts bill to ease property laws in face of public uproar

President Javier Milei's attempt to attract private investment to Argentina hit a snag on Wednesday when lawmakers softened legislation aimed at easing restrictions on foreign property ownership due to widespread criticism. The bill will still proceed to the Senate for a vote on Thursday, but without a crucial section that would have raised the cap on how much foreign land foreigners can own, according to a statement from Milei's top senator, Patricia Bullrich.

Demonstrators are anticipated outside Congress to protest the legislation, which has already been postponed earlier this month and is viewed by some citizens as the sale of their country. The mix of public outrage and Milei's approval ratings being near the lowest point of his presidency seems to have prompted his administration to drop the most contentious parts of the bill.

Labor unions and opposition leaders are rallying their followers to the streets, while celebrities, athletes, actors, and other public figures joined in, accusing Milei's government of profiting from Argentina's land. The national team's World Cup game against England last month also fueled patriotic feelings, reigniting tensions in an ongoing territorial dispute over the Falkland Islands, also known as Las Malvinas to locals.

Milei's initial bill, introduced in March, removed caps on foreign land ownership, which was previously limited to 15 percent. A revised version introduced this week increased the limit to 25 percent at both the national and provincial levels, but that portion of the bill has been abandoned now. The remaining sections of the legislation would speed up evictions, make it easier to recover property after it's taken over by the state, and eliminate land-use restrictions after fires.

This decision came after a Wednesday afternoon meeting of Senate bloc leaders representing the 44 senators from Milei's party and its allies, out of the chamber's 72 members. "The decision was adopted unanimously among the members of the space in order to keep working on this chapter and reach a greater level of consensus," Bullrich's press office stated in a statement.

"The postponement does not represent its elimination." Some in the government saw the property bill as a barometer for electoral reform, aiming to eliminate or at least suspend primaries during the 2027 election. Investors are closely watching the reform, as it could enhance Milei's chances of re-election and mitigate the market volatility typically experienced by Argentina's economy during the elongated electoral period.