Argentina Senate Approves Pension Reform Bill

Argentina's Senate has passed a pension reform bill with a significant 61-8 vote, adjusting pensions in line with inflation, which poses a challenge to President Javier Milei's strict austerity measures. The reform, which is expected to increase pension spending by around 0.4% of GDP, reflects the growing concerns over poverty, with 55.5% of Argentines living in poverty, as highlighted by Senator Juliana Di Tullio. While Milei has threatened to veto the bill, the widespread support may lead to social unrest if he follows through. This legislative move has raised alarms among investors about Milei's capability to implement his radical economic agenda amidst a Congress dominated by leftist and centrist parties. The reform also comes after Congress previously rejected an increase in the intelligence budget, redirecting those funds to urgent social needs. The political climate indicates a growing divide between Milei's administration and Congress, complicating future economic reforms.