Argentina’s President Milei Faces Setback as Reform Bill Sent Back to Committee
Rejection of Reform Bill
Argentina’s libertarian President Javier Milei suffered a major blow as a significant economic reform package championed by him was sent back to a legislative committee for reconsideration. This move, announced by the president’s party on Tuesday, marks a significant setback for the bill.
Legislative Process
The rejection of several provisions of the bill took place during the article-by-article approval process by lower house lawmakers. This happened after the general approval of the so-called “omnibus” proposal last week. The bill, which underwent substantial revisions, included provisions for privatization of state entities, changes to numerous regulations, and measures to reduce state subsidies.
Political Dynamics
Despite Milei’s victory in the presidential run-off vote, his party’s performance in the previous round of voting was not as successful. Due to the relative weakness of his party in Congress, Milei sought support for the reform package from lawmakers within the main conservative coalition, Juntos por el Cambio.
His ruling Libertad Avanza party, with only 38 seats in the 257-member lower house of Congress, expressed disappointment and labeled the behavior of opposing lawmakers as treasonous. However, they acknowledged the need to return to committee.
Milei’s Response
Later, Milei criticized lawmakers for blocking the reform package, referring to them as part of the political “caste” responsible for the country’s problems. He expressed his unwillingness to negotiate with those he blames for the country’s economic turmoil.
Economic Struggles
Milei attributed Argentina’s dire economic situation, with over 200% inflation, to excessive spending by past governments, particularly those led by the center-left Peronists.
Some opposition lawmakers called for compromise from those supporting Milei’s reforms during the legislative session.
Next Steps
Before the legislation can proceed to the Senate, it must first secure passage in the lower house. However, Milei’s party holds only seven seats in the 72-member Senate.
