The Milei administration has circulated a pared back version of its sprawling omnibus bill to lawmakers and governors after Congress rejected it earlier this year, Presidential Spokesman Manuel Adorni said on Wednesday.

The bill, which includes plans to privatize state entities and measures to allow reductions in state subsidies, is a key part of Milei’s plan to fix a severe economic crisis in which inflation is over 275% and net foreign reserves are near zero.

“Today we find ourselves with a second chance,” Adorni told reporters, adding that the new draft of the bill was circulated late on Tuesday. The government was confident it would win support, he said.

The president, who only has a minority in Congress, has been forced to compromise with potential political allies on the bill after it was rejected in February.

The bill is expected to go back to congressional committees as early as next week before a new round of voting. It eventually needs approval by both chambers to pass.

The process underscores that Milei’s government is having to take a more conciliatory approach to reforms as the opposition Unión por la Patria (UxP) bloc still holds the largest number of seats in Congress.

The government has removed a key fiscal section of the original bill — part of Milei’s pledge for a “zero” deficit this year –- and watered down some reforms. It plans to pursue the fiscal measures separately.

“We are a government that dialogues, listens, and is open to proposals,” a government official said, asking not to be named. The official said the draft bill was “99.9% finalized.”

–Reuters