Javier Mileihas confirmed that he will veto the new pension law recently approved by Congress, calling it an “act of demagogic populism.” This decision has sparked intense debate in the country, reflecting the deep political and economic divisions that characterize the current administration.
The pension law, which was approved by a large majority in both houses of Congress and Javier Milei The bill, which will veto it, proposes a recomposition of retirement benefits and a new mobility formula. According to the defenders of the law, this measure seeks to improve the quality of life of retirees, adjusting their income according to inflation and other economic indicators.
However, the president Milei and his economic team have argued that the law is irresponsible and fiscally unsustainable. In an official statement, the president expressed his firm opposition to the law, stating that “the National Congress, in an act of demagogic populism, sanctioned an irresponsible, illegal and unconstitutional bill that establishes exorbitant expenses without its corresponding budget allocation.”.
According to the president, the implementation of this law would entail an additional expenditure of 1.2% of the Gross Domestic Product (GDP), which would force the State to contract debt and compromise the country’s economic stability.
The president also criticised the opposition, accusing it of using the law as a political tool to force the government to take an unpopular position. “The opposition’s intention is to force the government to oppose this demagogic measure in order to score a political victory,” he said. Milei.
In his opinion, the law is a “moral fraud” and a “fiscal irresponsibility” that does not take into account the economic realities of the country. The opposition’s reaction was not long in coming. Leaders of the parties that supported the law defended its passage, arguing that it is a necessary measure to protect retirees and ensure that their income is not eroded by inflation.
New Law
“This law is an act of social justice,” declared one of the senators who voted in favor of the measure. According to the defenders of the law, the government of Milei He is more concerned with maintaining the fiscal surplus than with the well-being of retirees.
The controversy surrounding the pension law and the veto announced by Javier Milei reflects broader tensions in Argentine politics. Since coming to power, the president has taken a strong stance in favor of fiscal austerity and reduced public spending. His administration has implemented a series of measures aimed at controlling inflation and reducing the deficit, including cuts in social spending and the elimination of subsidies.
