The Argentine President, Javier Milei, suffered a first serious setback on Tuesday in Parliament, where for lack of support, his set of deregulatory reforms was sent back to committee, but the ultra-liberal remains determined to implement his program.
“Our program was voted for by 56% of Argentines and we are not willing to negotiate it with those who destroyed the country
,” denounced on X Javier Milei who intends to
“continue”
the program
“with or without the support of the leaders policies that destroyed our country
.
Tuesday evening, when the Chamber of Deputies was preparing for very uncertain votes on the controversial topic of privatizations, the presidential party La Libertad Avanza (LLA) suddenly requested and obtained the adjournment of the session, de facto returning the text in committee.
Interior Minister Guillermo Francos, who had been the linchpin of the negotiations to obtain an ad hoc majority - a challenge for Javier Milei's LLA party, the 3rd force in the hemicycle -, explained that he had noted
"a lack of will of the blocs to support the reforms
.
“There were voting commitments which were not respected in practice
,” he denounced.
From Israel, where he arrived on Tuesday for a diplomatic tour which will also take him to the Vatican and Italy, President Milei denounced on X
"the caste which got in the way of change"
.
“It will not be easy to change a system in which politicians have enriched themselves at the expense of Argentines
,” he admitted.
The opposition demands changes
The deputies resumed on Tuesday the thorny examination, at times article by article, of the ambitious law known as
“Omnibus”
by Javier Milei.
Initially 660 reforming provisions also in the economy, commerce, culture, criminal law,... then, a project over the weeks narrowed down to around 300 articles.
However, the government initially recorded a victory on Tuesday, with deputies approving the principle of
“delegated powers”
to the executive for one year, to legislate by decree in the name of
“economic emergency”
.
Cracks had nevertheless appeared, moderate opposition deputies, like the centrist Paula Oliveto saying they feared
"a weak democracy, which concentrates (powers) on a single person"
, referring to Javier Milei, and
"ends up leaving us all defenseless"
.
But the evening vote on the details of the
“Omnibus Law”
promised to be even more complicated: the moderate opposition, although ready to support the reforms, intended to demand modifications, such as on privatizations (between 30 and 40 companies targeted) , or the distribution of State/provincial resources.
“The (provincial) governors did not keep their word
,” affirmed the leader of the LLA group Oscar Zago, suggesting that it is on the aspect concerning the financing of the provinces that the power was unable to ensure guarantees of voting by often independent governors, in a federal country with 24 provinces.
“A political defeat of the government”
The presidency has also pointed the finger at them and threatened them.
“Unfortunately, the adjustment will have to be more significant, it is the governors who will be concerned
,” warned presidential spokesperson Manuel Adorni on LN+ television.
“Each of the government's expenditures must be reviewed in order to comply with President Milei's instructions: zero deficit
,” he insisted.
Javier Milei repeatedly repeats that
“there is no plan B”
for austerity to restore Latin America's 3rd largest economy, structurally indebted and strangled by 211% inflation (in 2023).
The IMF has predicted a recession of 2.8% in 2024, under the effect of the first austerity measures, including a 50% devaluation of the peso.
The opposition exulted after the drama in Parliament.
“A political defeat for the government
,” said Peronist deputy Leandro Santoro, asserting that it is
“unprecedented ridicule”
for the government .
According to parliamentary procedure, sending a bill back to committee cancels the votes previously obtained.
In this case the favorable vote, last Friday, on the
“general principle”
of the law, and that of Tuesday on the
“delegated powers”
.
“That means they have to start everything from scratch
,” said radical left MP and former presidential candidate Myriam Bregman.