Milei vows to veto pension increase, forgoes own pension amid crisis

Libertarian President of Argentina Javier Milei announced on Wednesday that he will veto the bill passed by the Chamber of Deputies to increase pensions to balance high inflation. His office also announced that Milei would forgo his presidential pension.

The Chamber of Deputies, the lower house of Argentina's parliament, passed a bill on Wednesday to amend the pension calculation system. The bill provided for, among other things, an additional 8.1 percent pension increase to compensate for the loss of purchasing power caused by austerity policies in the first quarter of the year. The bill will now go to the Senate.

The president's office, however, stated that Milei would veto "any bill that threatens the fiscal balance of the Republic of Argentina." It accused opposition deputies who supported the bill of attempting to put the country back on the "path of decadence," deficit, and an inflationary spiral.

Milei's office also condemned that the provision eliminating pensions for the country's presidents and vice presidents was removed from the bill during the debate. It pointed out that deputies recently increased their salaries by 80 percent.

As noted in the statement, Milei will inform the National Social Security Administration (ANSES) of his decision not to take advantage of his right to a presidential pension.

Since his inauguration in December last year, Milei has pursued a policy of drastic budget cuts, aiming to eliminate the deficit and control inflation. In the first few months of the year, the country generated a budget surplus, which came at the cost of lowering real pensions and laying off thousands of public sector employees.

Pensioners are among the groups most affected by the libertarian president's economic "shock therapy." According to some estimates, the poverty rate in Argentine society has risen to 55 percent in recent months. The newspaper El Cronista reminds us that from December 2023 to February 2024, although prices increased by 60 percent during this period, pensions were not raised.