Ten days after its approval, the President reversed the Integrated Retirement and Pension System and a scheme promulgated by decree will continue in force.
The wait is over: Javier Milei made official the Total veto on the increase in pensions for retireesafter meeting in Pink House with its allies in the Congress. The law will govern again pension system established by a DNU of his Government, decreed in March.
The main argument for the veto is that the sanctioned project goes against the main guideline of the libertarian Government of maintain fiscal balance since it would imply an additional expense for the State $6 trillion for 2024 and $15 trillion for 2025, which would be equivalent to 1.02% of GDP for the current year and 1.64% of GDP for the next year.
“The bill approved by the National Congress is manifestly violative of the current legal framework “since it does not consider the fiscal impact of the measure nor does it determine the source of its financing,” indicates the text you accessed Scope exclusively.
Before implementing the veto, the President summoned PRO deputies to a summit with legislators from Freedom Advances to ensure that the opposition does not reach two-thirds, in a risky calculation but which for the moment they achieve: A potential opposition alliance requires two votes from those aligned with the ruling party to achieve a special majority. In addition, it laid the foundations for new consensus thinking about the project of the Budget 2025.
Last week, at a ceremony marking the anniversary of the Rosario Stock Exchangethe President anticipated that he would implement the veto when he considered that “the degenerate prosecutors They voted in large majority for a nonsense that involves 62% of the GDP in debt, which costs Argentines US$370,000 million, ruining the lives of future generations.” He also considered that “Retirees are much better off than before.”
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He Integrated Retirement and Pension System had been approved on August 22 with 61 votes in the Senate (out of 69 legislators present) and established a scheme that combined the Consumer Price Index and Average Taxable Remuneration of Stable Workers (RIPTE)with a Extra income of 8.1% for retirees and a recomposition to the pension funds owed to the provinces by the Nation for a sum of $703,515 million.
The retirement system decreed by Javier Milei in March consists of monthly increases tied to the (CPI) and included a one-time adjustment of 12.5% for the previous devaluation. However, the opposition’s claim was that the inflation rate had been higher than 21%, which represented a deterioration in the purchasing power of pensions.
Source: Ambito
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