The Senate has approved a pension increase in Argentina, defying President Javier Milei’s tough austerity program aimed at tackling the country’s triple-digit inflation rate. The bill, which passed the Senate by a wide margin, is likely to be vetoed by Milei, causing further tension between the libertarian leader and the opposition-controlled Congress.
Milei’s office has stated that the pension reform would undermine the government’s economic program and promised to maintain a fiscal surplus at all costs. With his party controlling less than 15 percent of Congress, Milei has relied on executive decrees to implement his austerity measures, facing frequent opposition in the legislature.
The proposed pension increase threatens investors’ confidence in Milei’s ability to carry out his radical agenda, which has already led to a fiscal surplus but also deepened a recession and increased poverty. While Milei managed to secure some legislative victories, such as an economic reform bill in June, the pension law’s potential impact on his fiscal program has raised concerns among investors.
The Senate’s defiance of Milei’s austerity measures and the likely veto of the pension reform highlight the ongoing struggle between the president and Congress. The rift between the libertarian leader and lawmakers could intensify, as both sides seek to advance their agendas amid economic challenges in Argentina.
Source
Photo credit www.aljazeera.com
