Argentina: Pres. Milei to Veto Pension Reform Bill

The Facts

• Argentine Pres. Javier Milei said on Friday he would veto a pension reform bill estimated to increase pension spending by between 0.44% and 1.2% of the gross domestic product, with his office reasserting his pledge to "maintain a fiscal surplus at all costs."

• The bill, passed by the Senate in a 61-8 vote, includes cost-of-living adjustments for pension benefits. The minimum monthly pension is nearly $233, while the cost of the basket of goods and services used to measure inflation costs more than $300 a month.

• According to the presidential office of Argentina, the pensions reform is an "irresponsible, illegal and unconstitutional bill" approved in an "act of demagogic populism" that disturbs the country's fiscal balance.