Absolutely central to the passage of the labour reform (and almost all the Congress bills to follow) is the assent of the provincial governors controlling the deputies and senators needed to take the ruling La Libertad Avanza party over the top to an overall parliamentary majority. This situation leads to negotiations between federal and provincial governments whose extreme flexibility can only remind us that the scope for haggling would be far more limited if an institutional system were in place to administer the distribution of the public purse, as mandated by the 1994 constitutional reform (to come into force by the end of 1996 at the latest, thus making it three decades overdue).
“Coparticipación federal” is the local term for what can perhaps be best translated into English as “federal revenue-sharing” (the phrase long used in Canada for this system, although the current terminology there is “fiscal fede
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