In a setback for Argentina’s Milei, sweeping reform bill returned to committee – Reuters

By Nicolás Misculin

BUENOS AIRES (Reuters) – A significant economic reform package proposed by Argentina’s libertarian President Javier Milei will be sent back to a legislative committee for further consideration, according to a statement from the president’s party on Tuesday. This development represents a substantial setback for the reform initiative.

The difficulties arose during the approval process, where various provisions of the bill were rejected by lawmakers in the lower house, even after the general framework of the so-called "omnibus" proposal had been tentatively approved late last week.

Despite undergoing substantial revisions by legislators, the bill still aimed to facilitate the privatization of state entities, amend hundreds of regulations, and introduce measures aimed at reducing state subsidies.

While Milei secured around 56% of the vote in a two-candidate presidential runoff last November, candidates from his party performed poorly in previous legislative elections.

To garner support for the reform package, Milei has sought alliances with the main conservative coalition, Juntos por el Cambio, due to his own party’s limited influence in Congress.

Milei’s Libertad Avanza party, which holds only 38 seats in the 257-member lower house, expressed frustration over what it deemed treasonous behavior by lawmakers opposing the bill but acknowledged the need for the proposal to be revisited in committee.

Later on Tuesday, Milei took to social media to criticize legislators whom he accused of obstructing the reform agenda, disparaging them as part of the political "caste" he holds responsible for the nation’s problems.

"We are not willing to negotiate this with those who destroyed the country," he stated while on a diplomatic trip to Israel.

Milei has largely attributed Argentina’s severe economic crisis, characterized by an inflation rate exceeding 200%, to extravagant spending by previous administrations, particularly those led by the center-left Peronists.

In response, some opposition lawmakers urged Milei’s supporters to be more amenable. "We ask the ruling party to show some flexibility. They love to keep losing," remarked opposition lawmaker Miguel Pichetto during the legislative session.

Before the reform package can advance to the Senate for final consideration, it must first be approved in the lower house, where Milei’s party holds only seven of the 72 Senate seats.