The parliamentary set-off arrives as Mairay’s political parties face down the popularity heading into medium-term elections.
Released on October 2, 2025
Argentina’s struggling president, Javier Miley, suffered a new setback as Congress overturned the veto of laws that increased funding for public universities and pediatric care.
On Thursday, the senators negated both vetoes. This was already rejected by the agency, and came to the number of three laws supported by Congress despite fierce opposition from Mairay, destroying the budget.
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Milei, who implemented deep austerity policies to reduce the size of the government, said new spending would put Argentina’s fiscal balance at stake.
The Senate vote comes as US-backed Mairay struggles to finish its peso on national highways, Argentine, in the preparations for the key midterm elections on October 26th.
The 54-year-old right-wing has been in power since December 2023 and has been on the ropes since his party was shot by the central left in a Buenos Aires province poll last month.
These elections were seen as a pioneer before the midterm, shredded an aura of political invincibility and sent the market into tailspin.
“The sense of corruption and anger is being affected by reduction,” said Sebastian Halperin, a political consultant in Buenos Aires.
He added that Miley couldn’t build an alliance with the governor that would affect how state lawmakers vote in Congress.
Last week, the US government announced it was meeting with Argentina on a $20 billion swap line aimed at reinforcing the peso.
US President Donald Trump tried to support his close allies at talks held in New York last week, saying, “He’s doing a great job.”
The two are expected to meet in October as Myray tries to secure a credit swap line from the US.
However, analysts say the president needs strong mid-term results to avoid compromising on progress that has stabilized Argentina’s economy.
After a temporary rally, PESO fell again this week over market uncertainty regarding the amount and scope of US financial support being offered.
