As he anticipated Scope, President Javier Milei decided to move forward with the total rejection of Law 27,756 approved last month by a large majority in the House of Representatives and the Senate.
The Government vetoed the pension reform
The president signed his document on Friday night, but it was not until this morning Decree 782/24 was published in the Official Gazettewhich is described as “manifestly in violation of the current legal framework as it does not consider the fiscal impact of the measure nor determine the source of its financing.”
Furthermore, he argues that Law No. 24,156 on Financial Administration and Control Systems of the National Public Sector is clear in expressly requiring that any “law authorizing expenses not provided for in the general budget must specify the sources of the resources to be used for its financing.”
The decree indicates that the application of the law “This would imply for the NATIONAL STATE an additional expense to that planned of approximately SIX TRILLION ONE HUNDRED SIXTY THOUSAND MILLION PESOS ($6,160,000,000,000.-) for the year 2024”which would rise to “FIFTEEN TRILLION FOUR HUNDRED THIRTY THOUSAND MILLION PESOS ($15,430,000,000,000.-) by the year 2025.”
It also points out that these amounts “are equivalent to ONE POINT TWO HUNDRED TENTHS PERCENT (1.02%) of the Gross Domestic Product (GDP) calculated for the current year; and ONE POINT SIXTY FOUR HUNDRED TENTHS PERCENT (1.64%) of the latter, estimated for the coming year.” It adds that the figures would make it “impossible to meet the fiscal goals set by the NATIONAL GOVERNMENT.”
He also points out that Compliance with the measure approved by Congress “would seriously hamper the sustainability of the public finances of the ARGENTINE REPUBLIC” and would involve “obtaining an extraordinary, unforeseen source of financing in order to meet its cost, whether through public debt or tax increases.”
For this reason, Article 1 of the decree states: “The bill registered under No. 27,756 is observed in its entirety.” Article 2 provides for the bill to be returned to the National Congress, where the decree must be rejected or approved.
Javier Milei prepares to defend the veto in Congress
The head of state signed the decree on Friday night, hours after holding a meeting in the Casa Rosada with the blocks of dialoguing deputies, who gave their support for the veto. The meeting with legislators from PRO, MID and La Libertad Avanza (LLA) was attended by the Secretary General of the Presidency, Karina Milei, and the Chief of Staff, Guillermo Francos, at the request of the president himself.
During the meeting, the President first met with the block leaders Christian Ritondo (PRO), Oscar Zago (MID) and Gabriel Bornoroni (LLA), and then move on to an “expanded” meeting with the rest of the legislators who make up those seats. Official sources indicated to this agency that Milei explained to the legislators the reasons for the veto and sought to secure the two-thirds vote necessary to prevent the parliamentary opposition from reinstating the law.
In this way, the president managed to gather the necessary support from the opposition in dialogue to counteract the intentions of some parliamentary blocs to maintain the pension update after the announcement of the challenge.
Despite the President’s will, the Congress still has one last chance to move forward with pension reform. In case of gather two-thirds in both Chamberslegislators will be able to insist on the project and override the presidential veto.
Anyway, still There is no certainty that Congress will be able to gather the two-thirdsafter long internal disputes in the PRO during the last week. Although in the initial votes both Chambers approved the project with a large majority (61 votes in favor in the Senate and 160 in the House of Representatives), The ruling party would be starting negotiations with the different blocks so that the veto is finally approved.
Source: Ambito
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