💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

Argentina's Milei to veto pension reform, widening rift with Congress

Published 08/22/2024, 08:16 PM
Updated 08/22/2024, 11:26 PM
© Reuters. FILE PHOTO: Argentina's President Javier Milei speaks during the CPAC (Conservative Political Action Conference) in Balneario Camboriu, Santa Catarina state, Brazil, July 7, 2024. REUTERS/Anderson Coelho/File Photo

BUENOS AIRES (Reuters) -Argentine President Javier Milei will veto a pension reform passed on Thursday by the Senate in a move that is likely to widen an ongoing rift between the libertarian leader and the opposition-controlled Congress.

The Senate had overwhelmingly agreed to hike pensions in line with the country's triple-digit inflation, which could have risked the strict fiscal balance pushed by Milei.

Milei's office said in a statement on X that the bill's "only objective was to destroy the government's economic program," as it would have required spending an extra 1.2% of the gross domestic product.

"The president promised Argentines that he would maintain a fiscal surplus at all costs, and he will," his office said.

Milei took office in December with strict austerity measures as part of a bid to tackle rampant inflation in the face of rising poverty now hitting half of the Argentine population.

© Reuters. FILE PHOTO: Argentina's President Javier Milei speaks during the CPAC (Conservative Political Action Conference) in Balneario Camboriu, Santa Catarina state, Brazil, July 7, 2024. REUTERS/Anderson Coelho/File Photo

Peronist center-left Senator Juliana Di Tullio, who had voted for the pension adjustment, said that "55.5% of Argentines are in poverty and 17.5% are in extreme poverty. Many of them are senior citizens."

Last week, Congress struck down a presidential decree which would have multiplied the intelligence budget, arguing those funds could be used for more urgent social needs.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.