The results of Argentina's legislative elections will give President Mauricio Macri the increased support he needs to move forward on controversial economic reforms, but he still might not have the support he needs to actually pass some of the reforms. On Oct. 22, Macri's ruling coalition, Cambiemos, increased its number of seats in both houses of Congress. In the 257-seat lower house, Cambiemos gained 20 seats for a total 107 seats. In the 72-seat Senate, Cambiemos gained six seats for a total 24 seats.

Despite being the largest coalition in both Congressional houses, Cambiemos does not have a majority of seats and will likely encounter resistance to its reform proposals. The second largest political force in the lower house, led by allies of former President Cristina Fernandez de Kirchner, has 67 seats in the lower house. And having won a seat in the recent election herself, Fernandez is likely to lead that opposition bloc against Macri's economic measures. Meanwhile, Justicialist, a Peronist party, will be Macri's main opposition in the Senate with 23 seats.

Macri's electoral gains give his government enough political leverage to negotiate a congressional majority to pass some economic measures, such as tax reform. But for the more controversial labor reform, opposition by Argentina's politically powerful labor unions will force Macri to try to pass his proposals piecemeal by industry. 

Tax reform will likely be the first issue that Macri attempts to push through Congress in 2018. (Argentina's new congressional term begins Dec. 10.) The proposals will attempt to simplify and, in some cases, reduce taxation. To make that financially feasible, the Argentine government will also continue trying to reduce its energy subsidies, leading to increased fuel and electricity prices. Though Macri does not have the majority he needs to pass the tax reform on his own, he may be able to gain support from the Peronist opposition, who are close to provincial governors, by allocating government funds to some provinces.