Milei to Veto Pension Reform Amid Rising Inflation and Poverty

Argentine President Javier Milei plans to veto a Senate-approved pension reform intended to adjust pensions according to the country's high inflation. Milei argues that the bill threatens his government's fiscal balance and economic program. The Senate voted overwhelmingly for the reform, aiming to assist impoverished citizens, including seniors.

Argentine President Javier Milei announced plans to veto a pension reform passed by the Senate on Thursday, a decision poised to deepen the rift between his libertarian government and the opposition-controlled Congress.

The Senate had voted to raise pensions in line with Argentina's triple-digit inflation, but Milei's office claimed the bill would undermine the government's fiscal balance. According to a statement from his office on social media platform X, the bill's 'only objective was to destroy the government's economic program,' as it would necessitate an additional 1.2% of GDP in spending.

'The president promised Argentines that he would maintain a fiscal surplus at all costs, and he will,' read the statement. Since taking office in December, Milei has implemented strict austerity measures in a bid to curb rampant inflation, which has driven half of the Argentine population into poverty. Peronist center-left Senator Juliana Di Tullio, who supported the pension adjustment, highlighted that '55.5% of Argentines are in poverty and 17.5% are in extreme poverty,' noting that many impoverished individuals are senior citizens. Last week, Congress rejected a presidential decree aimed at multiplying the intelligence budget, stating that the funds could be better utilized to address urgent social needs.

(With inputs from agencies.)