Despite his austerity measures, the Presidential Party is expected to do well in the key mid-term elections in October.
Argentine libertarian President Javier Mairi has rejected a bill aimed at increasing pensions and disability spending amid continuing protests against his austerity policies, which have hit many in his daily life.
Milei’s administration announced its decision on Monday three months before the important medium-term elections, saying the country doesn’t have enough money to fund the law.
The veto could still be overturned by a two-thirds majority in Congress, where politicians passed the law in July.
The Argentine president, who has only a handful of seats in parliament, hopes to repeat last year when he managed to stop the pension rise thanks to support from the conservative pro-block.
In a statement released on X on Monday, the President’s office suggested that the now-vet extension law was approved by Congress “in an irresponsible way” without identifying the source of funding.
It claimed that the rise in spending reached 0.9% of GDP this year and 1.68% of GDP in 2026.
“This president prefers to tell off an unpleasant truth rather than repeating a comfortable lie,” the president’s office said.
“The only way to make Argentina great again is to involve effort and integrity, not the same old recipe,” reflects the rhetoric of President Donald Trump, United States President, “make America great.”
Since taking office in December 2023, Mairay, a self-proclaimed “anarco-capitalist,” has cut federal spending to reduce inflation.
As part of these massive economic changes, his government removed tens of thousands of civil servant jobs, significantly reducing social spending and public works.
In 2024, Mylei’s policy led Argentina to gain its first annual surplus in 14 years, and in June Argentina’s monthly inflation rate fell below 2% for the first time since 2020.
But the president’s measures have been accused of putting millions of people in poverty in the first half of last year.
Unemployment is also rising, with prices rising 40% year-on-year, a condition for people to protest.
Researchers say pensioners who were at the heart of the weekly demonstrations are the most challenging group.
Despite public protests, polls show that Mairay’s party holds a significant lead ahead of the mid-term elections in October.
