Argentina’s senate approved a pension increase, putting it on a collision course with President Javier Milei and his austerity agenda.
Milei, who has slashed public spending by 30% since taking office in 2023, vowed to veto the legislation, which he called an attempt at an “institutional coup.”
His cost-cutting has led to Argentina’s first budget surplus in years while helping tame runaway inflation, though austerity has also pushed poverty rates up, denting his popularity ahead of October legislative elections. “Fiscal conservatism isn’t always desirable,” economist Noah Smith wrote. “But Milei is showing that the costs often aren’t as high as many progressives warn.”
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