Protests erupt outside Argentina Congress after pension rise blocked

Demonstrators on the ground — many of them pensioners — said that blocking the reforms would hurt millions in Argentina, where over half of the population is now living in poverty. Many left-wing opposition parties opposed Milei’s veto, and at least five opposition MPs were among those hospitalized after the protests turned violent, a legislator told AFP news agency. Milei responded to the unrest by calling demonstrators “terrorists,” and a spokesperson for his party said: “We cannot spend what we do not have, there is no money.” Critics said economic wins were coming “at the cost of the poor,” France 24 reported, pointing to anger at Milei’s concurrent decision to increase the state intelligence agency’s budget by $102 million, marking a 700% increase.

Retirees are at the frontline of Milei’s “chainsaw” economic reforms since he came into power last December. The self-described “anarcho-capitalist” has previously said that he plans to make Argentina “the most liberal country in the world,” promising the mass privatization of public companies, the relaxation of labor laws, and a new foreign investment incentivization scheme. The changes come as Argentina faces soaring inflation and an economic crisis, with Milei setting a goal of “zero budget deficit” by the end of 2024. However, his approach has courted controversy: Over 100 economists, including Thomas Piketty and Jayati Ghosh, published an open letter last year saying Milei’s policies would inflict further “devastation” on the Argentine economy.