Overview

• The vetoes block two bills that would have raised pensions by 7.2% and expanded disability benefits at an estimated cost of 0.9% of GDP this year and 1.68% next year.
• Congress approved the spending measures without specifying funding, and would need a two-thirds majority in both chambers to override the vetoes, a steep challenge for Milei’s minority party.
• Retirees living on roughly $400 a month have held weekly protests outside Congress and been met with tear gas and water cannons as they demand higher benefits.
• Since December 2023, Milei has used his veto power to secure Argentina’s first fiscal surplus in 14 years and push monthly inflation below 2%, though unemployment has risen and real wages have fallen.
• The move underscores Milei’s strategy to make October’s midterms a referendum on his austerity drive and to bolster his party’s legislative strength for further reforms.