Argentine President Javier Milei scored a political victory on Wednesday after securing the support of allied sectors in Congress to prevent a bill from going ahead improvements to retirement and pension benefits that he recently vetoed.
The most combative opposition failed in its attempt to gather the necessary votes to insist on the law that was approved at the end of August and then vetoed by Milei on the grounds that it would unbalance public accounts.
While the vote was taking place, members of unions and social organisations clashed with police forces in the vicinity of Congress, demanding an increase in pensions at a time when inflation is around 236% per year.
A total of 153 deputies voted in favor of insisting on the norm vetoed by the president, compared to 87 who were opposed and 8 who abstained. To reverse the veto, the opposition needed to gather two thirds of the votes —166—, so the presidential decision remained in force.
Milei, an ultra-liberal who has made a zero deficit and cuts in public spending his main objective, vetoed on September 2 the law to reform the retirement and pension system promoted by the opposition.
Several legislators from more dialoguing political forces such as the conservative PRO and the Unión Cívica Radical —which approved the law at the time— decided not to challenge the presidential veto, arguing that it is necessary to respect the will of the highest authority and that the law did not guarantee the way to obtain the resources to pay for the increases.
Milei had argued that the law seriously hampered the sustainability of public finances because it entailed an extraordinary source of financing through debt or tax increases.
After the president’s veto became known, opponents warned that they would insist on the initiative in Congress.
The legislation rejected by the president included, in addition to the increase in pensions to compensate for the loss of purchasing power due to the abrupt rise in prices at the beginning of the year, their automatic updating according to monthly inflation and an annual clause to apply when the average salary in the country rises more than inflation.
The government argued that all these measures would mean an expense that “would increase year after year” exposing future generations “to more issuance, debt, inflation and poverty.”
Retirees in Argentina They face an accumulated inflation rate of 94.8% in the first eight months of the year. The year-on-year inflation rate is 236.7% at a time when the minimum monthly pension is just over 225,000 pesos (231 dollars) and the basket of services and food for an adult is about 291,000 pesos (299 dollars).
The government has given some bonuses to retirees to compensate for their loss of purchasing power.
Connect with the Voice of America! Subscribe to our channels YouTube, WhatsApp and to newsletter. Turn on notifications and follow us on Facebook, X and Instagram.
Add Comment