A Landmark Change in Expropriation Rules
On August 7, 2026, Argentina's Senate granted partial approval (media sanción) to the Law on Inviolability of Private Property with a tight vote of 37 in favor and 33 against. The initiative introduces substantial changes that limit the state's discretion in expropriation processes.
According to Infobae, the new law establishes that the declaration of public utility will be interpreted restrictively. This means the state must specifically identify the purpose, and the expropriation must be suitable, necessary, and proportional.
Key Points on Compensation
- The property value will be calculated based on the market value prior to any expropriation announcement.
- Sentimental values or hypothetical gains will not be considered.
- Ownership cannot be transferred until the compensation is fully paid.
- Temporary occupations cannot exceed 90 days, with extensions only in severe emergencies.
The Government's Political Blunders
The path to this partial approval was marked by a harsh setback for the ruling party, La Libertad Avanza. As detailed by La Voz, the government lost three key chapters: land foreign ownership, the Fire Management law, and the National Registry of Popular Neighborhoods (RENABAP), due to lack of legislative support.
Deregulation Minister Federico Sturzenegger faced criticism for pushing an omnibus format that complicated negotiations. The official bloc's leader, Patricia Bullrich, is now trying to mend ties with allied legislators, posting a video on social media with the message that 'the tango takes two to dance.'
The Lost Cultural Battle
The debate's timing proved unfavorable for the government. The slogan 'The Homeland is Not for Sale' dominated public opinion, driven by celebrities like Tini Stoessel, Lali Espósito, and Emilia Mernes.
The nationalist climate intensified after the Argentine national team's victory over England, when a flag reading 'Las Malvinas son Argentinas' (The Malvinas are Argentine) was displayed—a symbolic blow to the government's interests.
Sergio Massa's Maneuvering and Peronism's Future
Peronism played a crucial role in trimming the project. Former Economy Minister Sergio Massa contacted governors like Gustavo Sáenz, Osvaldo Jaldo, Hugo Passalacqua, and Rolando Figueroa to block the most controversial initiatives. Massa believes Peronist unity is key for 2027, with Cristina Kirchner as an indispensable figure despite her house arrest.
In contrast, Buenos Aires Governor Axel Kicillof is advancing his 'Derecho al Futuro' movement, though his isolated strategy creates friction. According to an analysis by El Cohete a la Luna, teacher salaries in Buenos Aires province have fallen 22.7% since December 2019, reaching the lowest levels of the century—a factor that could impact his presidential aspirations.
The bill now moves to the Chamber of Deputies, where the ruling party must recalibrate its strategy to turn it into law.