The Government vetoed the pension reform approved by the Senate

The President Javier Miley vetoed the new pension mobility formula approved by the Senate on Thursday. The argument is that the legislators were “irresponsible” and that “there are no funds” to comply with the measure.

“There is no possibility of promulgating the entire project. We proposed modifications to sanction it, but they were not taken into account,” said an official close to the President in an interview with the news channel TN.

How the system for vetoing a law works in Argentina

Specifically, the Government opposes Article 2, which establishes an additional increase to the pension system represented by 50% of the annual variation of the Average Taxable Remuneration of Stable Workers (RIPTE) over the Consumer Price Index (CPI).

It also raises objections to Article 4, which provides for the guarantee of a minimum pension that is not less than the last value of the basic basket per adult set by INDEC multiplied by 1.09.

The Executive also objects to point 10 of the project, which promotes the cancellation of debts of the National Social Security Administration (ANSES) with the provinces through tax resources with a specific allocation to social security.

The opposition managed to get two-thirds of those present to support the pension reform without modifications compared to the bill approved by the House of Representatives. The government tried to negotiate changes, but was unable to reach agreements.

This is the number needed by the House of Representatives and the Senate to overturn a presidential veto. The opposition in favor of dialogue – PRO, UCR and Encuentro Federal – has already distinguished itself from the Government in the vote against the DNU that grants $100 billion in reserved funds for the SIDE.

That is why the Executive will seek to maintain partial alliances with the allied blocks and will avoid breaking relations with Mauricio Macri“We do not have a legislative force that allows us to be alone in Congress,” an official told TN.

Milei announced that he will veto all the projects that modify the fiscal structure that he established and seeks to attribute the political cost of the veto to the senators who voted for the pension increase. The Minister of Economy, Luis Caputostated that “fiscal balance is non-negotiable” after the approval of the project.

The presidential spokesman, Manuel Adornialso said in a press conference that “everything that goes against fiscal balance and public accounts, which is our backbone, will be vetoed.” The chief of staff, Guillermo Francossupported the same position.