BUENOS AIRES, Argentina: Argentina’s Senate approved a comprehensive economic reform bill crucial to President Javier Milei’s plans, while protests erupted outside Congress. The bill, which aims to boost investment by privatizing state entities and offering business incentives, passed after Vice President Victoria Villarruel broke a 36-36 tie in the upper house.
The bill’s passage followed a lengthy debate, and senators will now vote on each article of the package. Initially passed by the lower house in April, it will return for another vote due to Senate amendments. Villarruel remarked on the stark division in the country, highlighting the contrast between violent protests and citizens’ hopes for change.
Milei’s government, controlling a minority in both chambers, had worked to secure the bill’s passage despite expected amendments. The main opposition, aligned with unions, opposed the “bases” bill, and a separate fiscal package awaits a vote. The bill is essential for Milei’s strategy to address the country’s severe economic issues, including near 300% inflation. It involves privatizing public firms, granting special powers to the president, and encouraging investment. However, protesters fear the reforms may exacerbate unemployment and rising prices.
Protester and social leader Luis D’Elia expressed concerns, recalling past failed attempts to stabilize the economy without economic activity. Clashes are still ongoing between police and protesters, with fires and tear gas in the streets of Buenos Aires.
Milei’s office hailed the bill’s passage as a victory for the Argentine people and a step towards national recovery. Milei, an economist and former pundit, emphasized the importance of the bill for reversing the economic crisis. He pledged to persist with his reforms, even if they face further challenges in Congress.
A government official, speaking anonymously, anticipated the bill’s general approval but noted it might be “more altered than we would like.” The “bases” bill is expected to accelerate growth by attracting investment. Argentina faces severe economic challenges, including high inflation, capital controls, depleted reserves, and rising poverty. The economy is in recession, and the reform bill is seen as a critical measure to address these issues.
