Argentine Senate challenges president Miley with pension surge, undermines austerity efforts
Date
8/25/2024 9:00:57 AM
(MENAFN) On Thursday, Argentina’s Senate defied President Javier Milei by passing a pension hike that is estimated to cost at least 0.4 percent of the country's GDP, presenting a significant setback to his austerity program. This legislative defeat underscores Milei’s diminishing influence in Congress, where left-wing and centrist lawmakers hold substantial power. The bill, which had already cleared the House in June, was approved by the Senate with a decisive vote of 61 to 8. Notably, almost all of those opposing the bill were members of Milei's party, reflecting the president's failure to secure support from more moderate right-wing factions.
Milei, who has committed to eliminating legislation that contradicts his "zero deficit" strategy, condemned the Senate’s decision as "irresponsible, illegal, and unconstitutional," and vowed to veto the bill. He accused Congress of populism, claiming that the bill would impose excessive financial burdens on the country. However, the president faces the challenge of a potential override of his veto, as lawmakers could pass the bill again with a two-thirds majority.
With Milei's Liberal Party holding less than 15 percent of Congress and only seven of the 72 Senate seats, the president has largely depended on executive decrees to implement his economic policies, including government spending cuts and deregulation. After six months in office, Milei secured his first legislative triumph in June with a contentious economic reform bill that faced significant opposition, including protests outside the Senate. The narrow passage of that bill followed intense negotiations and compromises.
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