Police firing tear gas and rubber bullets clashed with stick-wielding protesters throwing rocks outside Congress on Thursday, leading lawmakers to suspend debate on reining in Argentina's pensions.
Demonstrators throw rocks at police during a protest of reforms to the retirement and pension system, in Buenos Aires, Argentina, Thursday, Dec. 14, 2017. (AP Photo/Natacha Pisarenko)
Union leaders and social activists opposing the proposal said the legislation would cut pension and retirement payments as well as aid for some of poor families starting in March.
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Police firing tear gas and rubber bullets clashed with stick-wielding protesters throwing rocks outside Congress on Thursday, leading lawmakers to suspend debate on reining in Argentina's pensions.
Union leaders and social activists opposing the proposal said the legislation would cut pension and retirement payments as well as aid for some of poor families starting in March.
The measure had been scheduled to be voted on in the lower Chamber of Deputies on Thursday, but the session was suspended indefinitely as opposition and governing party lawmakers yelled at each other inside the chamber while riot police fought with protesters in nearby streets.
"If the government has a fiscal problem, it should resolve it without putting a hand in the pockets of the pensioners," opposition lawmaker said Agustin Rossi, adding that he had been engulfed by tear gas.
The bill, which already passed the Senate, is part of a series of economic changes pushed by the government of President Mauricio Macri to reduce Argentina's high deficit.
"We're convinced that this project is good and it reflects the will of the majority of the parliament," Cabinet Chief Marcos Pena later said at a news conference at the presidential palace. "We feel that this law must be passed this way."
Macri took office in December 2015 promising to cut bloated government spending and revive Argentina's struggling economy. But his ordering of job cuts, the elimination of tariffs aimed at protecting local industry and the slashing of utility subsidies have fueled labor unrest in a nation with a long tradition of generous state jobs and benefits.
"We're not willing to take this. The people are going through bad times and we don't deserve this," said Monica de Albuquerque, a retiree who joined in the protests.
Police fires tear gas at stick-wielding protesters who hauled rocks and torched several garbage bins outside Argentina’s Congress building and in nearby streets, in Buenos Aires, Argentina, Thursday, Dec. 14, 2017. (AP Photo/Natacha Pisarenko)
The measure had been scheduled to be voted on in the lower Chamber of Deputies on Thursday, but the session was suspended indefinitely as opposition and governing party lawmakers yelled at each other inside the chamber while riot police fought with protesters in nearby streets.
Police launch tear gas canisters at stick-wielding protesters who hauled rocks and torched several garbage bins outside the Congress building and in nearby streets, in Buenos Aires, Argentina, Thursday, Dec. 14, 2017. (AP Photo/Natacha Pisarenko)
"If the government has a fiscal problem, it should resolve it without putting a hand in the pockets of the pensioners," opposition lawmaker said Agustin Rossi, adding that he had been engulfed by tear gas.
Argentina's largest union threatened to call a general strike if the measure was approved.
Police fire tear gas at stick-wielding protesters who hauled rocks and torched several garbage bins outside the Congress building and in nearby streets, in Buenos Aires, Argentina, Thursday, Dec. 14, 2017. (AP Photo/Natacha Pisarenko)
The bill, which already passed the Senate, is part of a series of economic changes pushed by the government of President Mauricio Macri to reduce Argentina's high deficit.
Demonstrators protest against reforms to the retirement and pension system, in Buenos Aires, Argentina, Thursday, Dec. 14, 2017. (AP Photo/Natacha Pisarenko)
"We're convinced that this project is good and it reflects the will of the majority of the parliament," Cabinet Chief Marcos Pena later said at a news conference at the presidential palace. "We feel that this law must be passed this way."
Pedestrians take cover from tear gas launched at demonstrators protesting reforms to the retirement and pension system, in Buenos Aires, Argentina, Thursday, Dec. 14, 2017. (AP Photo/Natacha Pisarenko)
Macri took office in December 2015 promising to cut bloated government spending and revive Argentina's struggling economy. But his ordering of job cuts, the elimination of tariffs aimed at protecting local industry and the slashing of utility subsidies have fueled labor unrest in a nation with a long tradition of generous state jobs and benefits.
Demonstrators rush at police during clashes, in Buenos Aires, Argentina, Thursday, Dec. 14, 2017. (AP Photo/Natacha Pisarenko)
"We're not willing to take this. The people are going through bad times and we don't deserve this," said Monica de Albuquerque, a retiree who joined in the protests.
Women take cover during clashes between police and demonstrators protesting reforms to the retirement and pension system, in Buenos Aires, Argentina, Thursday, Dec. 14, 2017.(AP Photo/Natacha Pisarenko)
She said it will be a "total disaster" if Macri's government goes ahead with the pension measure as well as proposals to reduce taxes and ease labor rules companies must observe.
BUENOS AIRES, Argentina (AP) — When interviewed about his plans after a shock electoral victory last fall, Argentina's President-elect Javier Milei gave his go-to answer in a blink: “To exterminate inflation."
“After that ..." he trailed off, as though searching for anything else that could possibly matter. “Life,” he said, shrugging.
Driven by a single-minded obsession with slashing spending to tame inflation — now nearing 300% — the former television commentator with just two years’ experience in Congress made clear from the start he had little interest in anything but economic deregulation.
But the all-or-nothing approach has left the short-tempered libertarian economist without a single legislative achievement 142 days into his presidency, raising questions about whether he can pull off his promised free-market revolution to rescue Argentina from its worst economic crisis in two decades.
Milei, who ran against “thieving politicians,” has run into resistance from Argentina’s combustible Congress, which he calls “the rat’s nest." His proposals have been rejected by political rivals, who he calls “parasites.” And he is struggling to win over disgruntled governors, who he reportedly threatened to “piss on" in a meeting last month.
But now, experts say, Milei is wising up to the game, giving up some campaign promises while maneuvering to secure enough other priorities to claim victory.
“He has had a rapid education in Machiavellian operations,” said Christopher Ecclestone, a strategist with investment bank Hallgarten & Company. “He's now using carrots and sticks to get what he wants.”
On Tuesday lawmakers — and protestors — converged on downtown Buenos Aires as the lower house continued debating a dramatically downsized version of Milei’s economic overhaul package, known as the omnibus bill.
Here's a look at the bill being discussed — and what it means for Argentina and its self-proclaimed “anarcho-capitalist" leader.
The first thing Milei did was crank out an emergency decree that allowed him to ram through hundreds of dramatic changes without Congressional oversight.
In just a few months, Milei devalued the Argentine peso by 54%, removed price controls for food and rent, froze all public works projects, halved the number of federal ministries, slashed government revenue transfers to provinces, cut fuel and transportation subsidies and laid off 15,000 state workers.
Milei claimed “a new era of prosperity” last week when Argentina logged its first quarterly fiscal surplus since 2008. He stabilized the peso's black market exchange rate after months of free-fall. Bond prices climbed.
But that's little comfort to poor and middle-class Argentines struggling to scrape by as prices rise and wages lose value. Over 40% of Argentines now live below the poverty line. Community kitchens say they're overwhelmed.
“I am forced to ask for donations because I can't afford clothes for my son,” said 37-year-old Alicia Martinez in Villa 31, an impoverished neighborhood in central Buenos Aires. “I don't know how much more I can take."
Milei may have won the run-off election with 56% vote share last November, but experts say no Argentine president has had less clout in Congress since the 1983 fall of Argentina’s military dictatorship.
“He is the weakest president in institutional terms that Argentina has ever seen,” said Ana Iparraguirre, partner at Washington-based political strategy firm GBAO.
Founded in 2021, his libertarian party, Freedom Advances, holds just 15% of seats in the lower house and 10% of the senate. None of Argentina's 23 powerful provincial governors — who hold keys to legislative support — are allies.
Milei is fighting two battles in Congress — one over his emergency decree and the other over his cornerstone omnibus bill.
Argentina's senate struck down the decree last month on the grounds it was unconstitutional. The decree remains in force until the lower house rejects it. But some judges have already suspended legislative chapters deregulating the labor market following union petitions.
The omnibus bill hasn't fared much better. The lower house approved in general terms a watered-down version of the original 664-article bill in February. But opposition lawmakers rejected key proposals, prompting Milei to withdraw the whole thing.
Moderating his tone, Milei entered weeks of negotiations with mainstream right-wing and centrist parties — and emerged with the even more scaled-back bill being debated in the lower house.
The omnibus bill remains controversial in granting Milei vast legislative powers in energy, tax, pensions, security and other areas.
But gone are the measures that could have bankrupted Argentina's powerful trade unions by eliminating automatic dues. Gone are the most extreme privatization plans that would have sold off Argentina's national bank and largest oil company.
In further concessions, Milei agreed he wouldn’t eliminate certain state agencies he has largely defunded, like Argentina’s national film institute and leading research body. To win over cash-strapped governors, Milei lowered salary thresholds subject to income tax.
“He presents himself as an uncompromising radical thinker but when push comes to shove, he is perfectly able to make compromises,” said Eugenia Mitchelstein, associate professor of politics at Argentina's University of San Andrés. “His 100-day honeymoon has come and gone ... He needs this law to pass.”
Milei's has powered his overhaul with little more than budget cuts by decree.
The International Monetary Fund expects a 2.8% economic contraction for Argentina this year. Businesses are firing. Argentines are cutting back on consumption, stoking fears of a recession.
Milei is betting foreign investment can help Argentina turn the corner. But first he needs to show investors — and the IMF, to which Argentina owes $44 billion — “that he can govern,” said Lucas Romero, who leads the consultancy Synopsis.
Economy Minister Luis Caputo seemed to recognize that during his remarks Monday at the Buenos Aires Stock Exchange addressed to businessmen.
“Our economic recovery depends on how successful we are in convincing you,” he said.
Associated Press writer Almudena Calatrava contributed to this report.
Anti-government protesters gather outside Congress where lawmakers debate a bill promoted by President Javier Milei that includes a broad range of economic, administrative, criminal, and environmental reforms in Buenos Aires, Argentina, Monday, April 29, 2024. (AP Photo/Natacha Pisarenko)
A protester wears a mask of Argentine President Javier Milei during an anti-government rally outside Congress as lawmakers debate Milei's bill that includes a broad range of economic, administrative, criminal, and environmental reforms in Buenos Aires, Argentina, Monday, April 29, 2024. The sign reads in Spanish "No to the base law. Socialist left." (AP Photo/Rodrigo Abd)
Pro-government lawmaker Lilia Lemoine holds her cell phone during the debate on a bill promoted by Argentine President Javier Milei that includes a broad range of economic, administrative, criminal, and environmental reforms, at Congress in Buenos Aires, Argentina, Tuesday, April 30, 2024. (AP Photo/Natacha Pisarenko)
An anti-government protester plays a trumpet outside Congress where lawmakers debate a bill promoted by Argentine President Javier Milei that includes a broad range of economic, administrative, criminal and environmental reforms in Buenos Aires, Argentina, Tuesday, April 30, 2024. (AP Photo/Natacha Pisarenko)
Lawmaker Maximiliano Kirchner attends the debate on a bill promoted by Argentine President Javier Milei at Congress in Buenos Aires, Argentina, Tuesday, April 30, 2024. The bill includes a broad range of economic, administrative, criminal, and environmental reforms. (AP Photo/Natacha Pisarenko)
A security guard watches lawmakers debate bill promoted by Argentine President Javier Milei in Buenos Aires, Argentina, Tuesday, April 30, 2024. Congress' lower house is debating a bill promoted by Argentine President Javier Milei that includes a broad range of economic, administrative, criminal, and environmental reforms. (AP Photo/Natacha Pisarenko)
Anti-government protesters stand with a sign that reads in Spanish "No to the labor law reform" outside Congress where lawmakers debate a bill promoted by Argentine President Javier Milei that includes a broad range of economic, administrative, criminal and environmental reforms in Buenos Aires, Argentina, Tuesday, April 30, 2024. (AP Photo/Natacha Pisarenko)
FILE - Argentina's President Javier Milei speaks during the Conservative Political Action Conference, CPAC 2024, at the National Harbor, in Oxon Hill, Md., Feb. 24, 2024. (AP Photo/Jose Luis Magana, File)
A copy of a bill, promoted by Argentine President Javier Milei that includes a broad range of economic, administrative, criminal, and environmental reforms, lays on a lawmaker's desk as Congress debates the bill in Buenos Aires, Argentina, Tuesday, April 30, 2024. (AP Photo/Natacha Pisarenko)
Interior Minister Guillermo Francos, right, attends lawmakers' debate on a bill promoted by Argentine President Javier Milei that includes a broad range of economic, administrative, criminal, and environmental reforms, at Congress in Buenos Aires, Argentina, Tuesday, April 30, 2024. (AP Photo/Natacha Pisarenko)
Lawmakers celebrate after approving part of a bill promoted by Argentine President Javier Milei in Buenos Aires, Argentina, Tuesday, April 30, 2024. Congress' lower house is debating a bill promoted by Argentine President Javier Milei that includes a broad range of economic, administrative, criminal, and environmental reforms. (AP Photo/Natacha Pisarenko)
Opposition lawmaker Romina Del Plá speaks during the debate on a bill promoted by Argentine President Javier Milei that includes a broad range of economic, administrative, criminal, and environmental reforms, at Congress in Buenos Aires, Argentina, Tuesday, April 30, 2024. The sign reads in Spanish: "Down with all of Milei's plan." (AP Photo/Natacha Pisarenko)
Opposition lawmaker Myriam Bregman speaks during a debate on a bill promoted by Argentine President Javier Milei at Congress in Buenos Aires, Argentina, Tuesday, April 30, 2024. The bill includes a broad range of economic, administrative, criminal, and environmental reforms. (AP Photo/Natacha Pisarenko)
