He vetoed three laws, arguing that they were passed in the Senate with ‘incorrect majorities.’

On Monday, far-right President Javier Milei issued a decree vetoing legislation that would have increased pensions for retirees and people with disabilities — a measure approved by Congress on July 10.

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“The President of the Nation, Javier Milei, has vetoed the bills recently passed by Congress in an irresponsible manner, without determining the source of funding and jeopardizing fiscal balance,” the Office of the President said in a statement.

His decree fully vetoed three laws, arguing that they were passed in the Senate with “incorrect majorities,” involved “serious procedural flaws,” and failed to comply with legislative procedures.

Additionally, the Argentine presidency stated that the measures would result in a structural and permanent increase in public spending, which — in its view — would necessitate monetary emissions, tax hikes and further borrowing.

Pensions and Disability Emergency

One of the initiatives approved by the Senate established an “exceptional and emergency” 7.2% increase in pensions. Current pension levels leave Argentina’s older adults hovering at the poverty line.

Congress also reinstated the pension moratorium, a mechanism that broadens social coverage and allows individuals who haven’t worked the required number of formal employment years to still access a pension.

Finally, a law was passed declaring a disability emergency through the end of 2027. It would have required the government to guarantee adequate funding for disability pensions and to strengthen assistance for people with disabilities.

According to the Milei administration, these laws would result in additional spending of approximately US$5.1 billion in 2025 and US$12.4 billion in 2026. “These amounts represent a 0.9% increase in the Gross Domestic Product (GDP) projected for this year, and 1.68% of the estimated GDP for next year,” the government stated.

How Can Milei’s Veto Be Overturned?

With the publication of the presidential veto decree, the process to override Milei’s decision and enact the laws begins. For that to happen, each of the two chambers of Congress must vote in favor of the laws with a two-thirds majority.

Amid speculation that lawmakers may consider new bills to increase spending on health care and university education, Milei called on his political allies — many of whom supported the pension and disability benefit increases — to oppose these new initiatives.

In Argentina, 63.5% of retirees receive the minimum pension, which in August amounted to US$279. A person who owns their home needs at least US$265 in monthly income to avoid being classified as poor, according to the government’s own definition.

However, estimates from the Ombudsman’s Office for the Elderly in Buenos Aires indicate that the minimum monthly income needed for an older adult to stay above the poverty line is US$873 — given their higher health and other living expenses compared with the general population.

teleSUR/ JF

Source: EFE

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