Overview

• An opposition majority in the Senate voted to reject President Javier Milei's veto of a law that mandates automatic distribution of Aportes del Tesoro Nacional (ATN) to provinces, delivering a major setback to the administration.
• Final enactment requires a two‑thirds insistence in the Chamber of Deputies, where earlier votes on other vetoes went against the government but the numbers on ATN are tighter.
• Financial markets weakened following the congressional defeats, with Argentine bonds falling, the peso under pressure beyond the official band, central bank dollar sales to contain the move, and the risk premium climbing.
• Economy Minister Luis Caputo and Milei escalated their rhetoric, alleging the opposition seeks to topple the president through Congress and warning the ATN law would undermine fiscal balance.
• Reports show the government released roughly 12,500 million pesos in discretionary ATN transfers to four provinces in recent days, a move seen as an attempt to sway votes, while public rifts widened inside the allied PRO bloc during the lower-house debate.