Argentina: Lower House Approves Milei's Reform Bill

Facts

• Argentina's Chamber of Deputies approved Pres. Javier Milei's sweeping 'omnibus' reform package in a 144-109 vote on Friday, capping days of intense debates in the country's lower house.¹
• Though it's likely to advance to the Senate in some form, Chamber of Deputies' lawmakers must vote on the legislation article by article — a process that is expected to start on Tuesday.²
• This comes after the government agreed to scrap the fiscal chapter from the bill, reduce the number of state-owned companies slated for privatization, and trim Milei's special legislative powers.³
• With only 38 seats in the Chamber of Deputies, the ruling La Libertad Avanza party reportedly relied on the support of right-wing and center-right parties such as PRO to reach the 129-vote threshold.⁴
• Milei has already devalued Argentina's currency by 50%, initiated cuts to transport and energy subsidies, and promised not to renew contracts for over 5K state employees.⁵
• During his presidential campaign, Milei — elected in a run-off against the then-outgoing left-wing Economy Minister Sergio Massa last November — had promised to 'do away with the political caste' and make drastic changes, including dollarizing the economy.⁶

Sources: ¹FOX News, ²Guardian, ³Wall Street Journal, ⁴Buenos Aires Herald, ⁵Associated Press and ⁶BBC News.

Narratives

• Pro-establishment narrative, as provided by EL PAÍS English. If this legislation — crafted to destroy the state in total disregard for its best interest — ever ends up being approved in Congress, Argentina can only expect a disastrous outcome. Now, more than ever, popular mobilization is needed to exert pressure on the government and its allies in the legislature.
• Establishment-critical narrative, as provided by Reason.com. Though he has had to scale back his ambitious reforms, this was Milei's first victory in an uphill battle to deregulate one of the world's most regulated economies and reverse decades of government failure. If Argentina has long been experiencing multiple crises, unreasonable restrictions on exercising constitutional rights are to blame.