Milei will veto law that regulates pension increases

In the midst of the economic and social crisis that Argentines are experiencing, the president of that country, Javier Milei, vetoed the law that regulates the increase in pensions previously approved by the Senate, as it was considered by the Executive as an “act of populism.” demagogic”.

This was expressed this Friday by the presidential spokesperson, Manuel Adorni, when he considered that the legal instrument “attacks the fiscal surplus because it implies more public spending.”

In that sense, he called the rule “irresponsible, illegal and unconstitutional”, since “it establishes exorbitant expenses without their corresponding budget item.”

Later, Milei himself said in a tv interview that “the veto is going to be complete, it is going to be total,” and ratified his intention to keep the fiscal deficit at zero at the expense of retirements.

The Argentine with a far-right ideology mentioned that the approval of the law would mean an expense of 370 billion dollars if the measure is taken “in perpetuity” because pensions are paid “from here until you die.”

What did the Law establish?

This Thursday, the Argentine Senate approved and turned into law a project that establishes a new formula for updating retirements and which had already received the approval of the Chamber of Deputies in June.

In a scenario of severe economic crisis in Argentina and with one of the highest inflation rates in the world, 65% of the 6,5 million retirees in the country receive the minimum pension, which this month was 225.454 pesos (233 dollars at the current official exchange rate), an income that reaches 295.454 pesos for the reinforcement bonus that social security has been granting for several months due to the emergency situation.

The approved law establishes a monthly update formula that combines the inflation index and the average variation in formal salaries, plus an extraordinary adjustment of 8,1% for retirees.