The riot police in the Argentine capital Buenos Aires had to intervene with tear gas and water cannons to disperse the demonstrators in front of Congress, who were protesting against the reform package – proposed by the right-wing president Javier Milei and approved last night in the Senate – to relaunch the country’s weakened economy and which includes declaring a state of economic emergency, cutting pensions and weakening workers’ rights. Protesters – who say the measures will harm millions of Argentines – threw Molotov cocktails and stones, setting a car on fire and several people were injured. Local media described the scene as a “battlefield”.
The vote in the Senate
The package was approved with the casting vote of Senate President and Vice President Victoria Villaruel. His vote was necessary to break the absolute parity that had been recorded in the two previous votes which ended 36 to 36. The text, which underwent over 40 changes in the debate in the Senate, will now have to return to the Chamber of Deputies for examination final approval. The vote took place in a climate of strong tension due to serious clashes that took place outside Parliament between opposition demonstrators and the police.
Milei forced to turn around: privatizations reduced
In the meantime, the national airline (Aerolíneas Argentinas), the post office (Correo Argentino) and the public radio and television service (RTA) have been removed from the list of privatizations contained in the Basic Law, the reform package approved last night at Senate. For example, both the repeal of the pension moratorium and the creation of a proportional old-age benefit for people who have reached the age of 65 and who have not accrued the 30 years of contributions necessary to retire were excluded. Corrections were also applied to the large investment incentive regime (Rigi): it will no longer be “any sector”, but “forestry, infrastructure, mining, energy and technology” that meet the expected requirements. Cryptocurrencies will also be wiped out, as they cannot be recycled abroad, as was established in the first instance.
