Argentina's Senate Passes Pension Reform Amid Inflation Crisis

Argentina's Senate has passed a pension reform bill to adjust pensions in line with inflation, garnering 61 votes in favor and eight against. President Javier Milei may veto it, which might provoke social backlash. Senator Juliana Di Tullio noted the severe poverty rates affecting senior citizens as a significant concern.

Argentina's Senate has overwhelmingly approved a pension reform bill designed to adjust pensions in line with inflation, garnering 61 votes in favor and just eight against. This measure could jeopardize the strict fiscal policies advocated by President Javier Milei.

Milei, who took office in December with a mandate for austerity, aims to combat rampant triple-digit inflation. Despite these efforts, poverty rates have surged, affecting half of the Argentine population. Milei has expressed intentions to veto the pension reform, but doing so might lead to significant social unrest given the bill's broad support.

Senator Juliana Di Tullio, from the Peronist center-left, supported the adjustment, highlighting the alarming poverty rates: 55.5% of Argentines live in poverty, and 17.5% are in extreme poverty, including many senior citizens. Recently, Congress also rejected a presidential decree to increase the intelligence budget, redirecting those funds towards pressing social needs.

(With inputs from agencies.)