Argentina’s Congress raises pensions in setback for Milei By Reuters

BUENOS AIRES (Reuters) – Argentina’s Senate overwhelmingly passed a reform to increase pensions in line with inflation on Thursday, which could jeopardize the strict fiscal balance imposed by President Javier Milei.

The bill, passed with 61 votes in favor and eight votes against, outlines a new pension adjustment mechanism.

Libertarian Milea took office in December with strict austerity measures as part of a bid to stamp out triple-digit inflation, even as poverty has risen to affect half of Argentina’s population.

He said he could reject the pension reform, although the measure passed with such broad consensus that a potential veto could cause social backlash.

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

Last week, Congress overturned a presidential decree that would have multiplied the intelligence budget, arguing that those funds could be used for more pressing social needs.