"I hope you don't support this populist demagoguery": Javier Milei announced that he will veto the pension reform.
Following the partial approval of the pension reform bill in the Chamber of Deputies , President Javier Milei reaffirmed his intention to veto the initiative for " compromising the fiscal surplus." The bill, promoted by the opposition, would update pension benefits, as well as the bonus received by those earning the minimum wage.
Through his X account, the national leader said: " Let's hope the senators don't support this populist demagoguery. In any case, our commitment is to veto anything that threatens the zero deficit ." The warning came just minutes after the vote in the Lower House, where it received 142 votes in favor against 67 against and 19 abstentions.
Let's hope the senators don't support this populist demagoguery, but in any case, our commitment is to veto anything that undermines the ZERO DEFICIT. The end.
— Javier Milei (@JMilei) June 5, 2025
The Union for the Homeland, Left Front, and Civic Coalition blocs, among others, proposed a 7.2% increase in retirement and pension benefits, which does not include special pension systems, and an increase in the pension bonus received by senior citizens earning the minimum wage, which will increase from $70,000 to $100,000 and will be subject to inflation adjustments. The government estimates the measure will cost approximately $12 billion, about 1.8% of GDP.
The President of the Nation will veto any and all bills that undermine the fiscal balance. Populism is no longer the way forward.
End.
While opposition legislators proposed ways to cover this expense—such as eliminating some tax exemptions for directors of companies and mutual guarantee societies, redirecting resources freed up by cutting International Monetary Fund surcharges, or nationalizing ACARA and SIDE revenue collection funds—the government stated that it will not budge on these points so as not to jeopardize fiscal balance. With the House of Representatives' partial approval, the bill will move to the Senate, where it could be approved.
Several officials from the national executive branch expressed similar views, including presidential spokesman Manuel Adorni , who stated that the president " will veto each and every bill that undermines the fiscal balance "; Economy Minister Luis Caputo , who addressed opposition legislators and warned that " they will no longer be able to deceive society by using noble causes as their banners "; and Chief of Staff Guillermo Francos, who emphasized during his presentation before the Christian Association of Business Leaders (ACDE): " The government will veto laws that affect the fiscal surplus, such as the pension reform."
Say hello to the degenerate prosecutors who are leaving. There are elections in October, and society will no longer be fooled by them posing as champions of noble causes…
— totocaputo (@LuisCaputoAR) June 5, 2025
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