Javier Milei Vetoes Pension Increase in Argentina

Argentine President Javier Milei has exercised his presidential veto for the first time by rejecting a Congress-approved bill aimed at increasing pensions for retirees. The vetoed bill would have provided a one-off pension hike and a new formula for monthly updates based on inflation and salary variations, which Milei argued was incompatible with the government's fiscal goals and lacked a clear funding source. With inflation soaring at 263.4% year-on-year, the president's administration contends that complying with the bill would jeopardize public finances and potentially require more debt or tax increases. While Milei's ruling party, La Libertad Avanza, holds a minority in Congress, the opposition is pushing to override the veto, needing a two-thirds majority in both chambers. The situation underscores the ongoing economic struggles in Argentina, where many retirees live below the poverty line with pensions insufficient to meet basic living costs. The political landscape remains tense as the opposition vows to challenge Milei’s decision amidst widespread criticism of the government's austerity measures.