Argentina's Senate passes key economic reform bill despite protests
3 Min Read
Despite public demonstrations against Javier Milei's economic reform plan, Argentina's Senate has passed a bill central to the president's controversial economic vision for the country.
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A man lights a cigarette from trash set alight by anti-government protesters outside Congress, where lawmakers debate a reform bill promoted by Argentine President Javier Milei in Buenos Aires, Argentina, Wednesday, June 12, 2024. (AP)
Argentina's Senate passed a key bill for President Javier Milei's economic reform plans on Wednesday, as protesters clashed with the police and set fires in front of the Congressional building.
Reuters reported that the bill was divided in a middle 36-36 vote until the head of the chamber, Vice President Victoria Villarruel, broke the tie in a decisive general vote.
Following a lengthy debate, the bill was passed, and senators are now preparing to vote on each article within the package aimed at increasing investment through the privatization of state entities and the provision of business incentives.
The bill originally passed the lower house of Deputies in April but will return there for another vote due to amendments made in the Senate.
The main left-leaning Peronist opposition bloc, strongly aligned with unions, voted down the "bases" bill, while a separate fiscal package still awaits a vote.
As Villarruel passed the vote, she made remarks on the existence of "two Argentinas... A violent Argentina that sets a car on fire, throws rocks, and debates the exercise of democracy, and another Argentina with workers waiting with great pain and sacrifice for the change that they voted for."
Protesters, however, disagreed amid concerns about increasing unemployment and consumer price rates.
Social leader Luis D'Elia said, "Argentine people's lives are at play. We've drunk this poison several times: to have zero inflation with zero economic activity," while protesting before thousands of demonstrators.
“Jabalina”
— Tendencias en Argentina (@porqueTTarg) June 12, 2024
Porque un hombre practicó lanzamiento de jabalina con fuego en la punta durante las manifestaciones contra la Ley Bases. pic.twitter.com/o2Ch9q5zsZ
Milei celebrates...
The Presidential office, on the other hand, celebrated the bill in a statement reading, "What happened tonight is a triumph for the Argentine people and the first step to recovering our greatness."
In light of the congressional decision, Milei said, "We are going to change Argentina. We'll make a liberal Argentina," noting that he would take a second go at it in 2025 if his reforms failed.
A government official, speaking anonymously, stated that they anticipated the bill would receive general approval from the Senate, though it would be "more altered than we would like."
The official noted that passing the "bases" bill would "accelerate the growth process, primarily by attracting investment into the country."
Milei's government, which holds only a minority of seats in both chambers, had been negotiating to gain allies. It anticipated changes to the bill but aimed for at least general approval.
President Milei is implementing drastic cuts in public spending across various sectors, including subsidies and state-owned enterprises, as part of a radical free-market experiment. The goal is to restore the country's credibility with foreign investors and combat hyperinflation.
However, in the short term, these deregulation and austerity measures have led to increased inflation, currently standing at 289% annually, one of the highest rates globally. This has significantly impacted the lives of ordinary Argentinians and contributed to the country's economic downturn.
Read more: Argentina's oil provinces threaten Milei to cut supply
