“Everything is going according to plan,” the Argentine president has repeatedly insisted in a flurry of posts on X, his preferred social media platform. The far-right Javier Milei needs to convince the public that his plan – particularly his economic plan – is working exactly as he intended.
With the October 26 midterm legislative elections approaching, Milei and his government are bracing themselves for some turbulent months ahead. After the broad powers that Congress had granted him at the start of his term – which notably allowed him to legislate by decree on a wide range of issues – expired on July 9 (a public holiday in Argentina), the opposition immediately rose to the challenge.
The very next day, during an especially tense session, the Senate approved several bills that disrupted the government’s plans: a 7.2% increase in retirement pensions, a decrease in the number of years of contributions needed in order to access retirement, and the declaration of a public policy emergency for people with disabilities.
‘Fiscal degenerates’
The Upper Chamber also approved an increase in public funds allocated to the provinces, as part of a quid pro quo with provincial governors. These governors rely heavily on funds transferred by the federal government, which Milei has been releasing only sparingly, and on infrastructure projects that have been halted since he took office. Tired of broken promises, opposition governors as well as government allies have rebelled by supporting the bills approved by Congress − marking Milei’s biggest political setback since he took office a year and a half ago.
You have 72.79% of this article left to read. The rest is for subscribers only.
