Argentina's Senate Passes Key Economic Reform Bill Amid Violent Protests

Argentina's Senate passed a crucial economic reform bill on Wednesday, a cornerstone of libertarian President Javier Milei's ambitious plans to overhaul the nation's struggling economy. The passage of the bill, which aims to boost investment by privatizing state entities and providing incentives for businesses, was marked by intense debate within the Senate and violent clashes between protesters and police outside Congress.

The upper house was sharply divided over the bill, resulting in a 36-36 tie that was broken by Vice President Victoria Villarruel, who presides over the Senate. The bill had already passed the lower house of deputies in April but will now return for another vote following amendments made by the Senate. The marathon debate saw senators deeply split, reflecting the broader national divide over the proposed economic reforms.

"Today there are two Argentinas," Villarruel remarked as she cast her tie-breaking vote. "A violent Argentina that sets a car on fire, throws rocks, and debates the exercise of democracy, and another Argentina with workers waiting with great pain and sacrifice for the change that they voted for."

Outside the legislative chamber, the streets of Buenos Aires were scenes of chaos as thousands of protesters clashed with police. Demonstrators, fearing the reforms would exacerbate unemployment and inflation, set fires and hurled rocks and bottles at law enforcement. Police responded with tear gas, water hoses, and rubber bullets to disperse the crowds. Reuters footage captured the intensity of the confrontations, including a car set ablaze amidst the turmoil.

Luis D'Elia, a prominent social leader and protester, voiced the concerns of many Argentines. "Argentine people's lives are at play. We've drunk this poison several times: to have zero inflation with zero economic activity," he said. "This poison has failed several times in Argentina and we won't allow this to carry on."

Why It Matters : The passage of this bill is pivotal for President Milei's administration, which has been grappling with an economy in crisis. With inflation nearing 300%, depleted foreign currency reserves, and rising poverty, the government argues that these reforms are essential to attract investment and stimulate economic growth. However, the deep divisions within the Senate and the violent protests highlight the significant opposition and fear among the populace regarding the potential impacts of these reforms.

Milei's government, which holds only a minority of seats in both legislative chambers, had to engage in extensive bargaining to secure the bill's passage. The administration celebrated the Senate's approval as a significant victory. "What happened tonight is a triumph for the Argentine people and the first step to recovering our greatness," the presidential office declared in a statement.

Despite the victory, the bill's journey is not over. It will return to the lower house for another vote due to the changes made in the Senate. Milei, a former economist and pundit known for his confrontational style, has tied much of his political capital to the success of these reforms. He has vowed to continue pushing for his economic agenda, even if it means revisiting the bill in 2025.

"We are going to change Argentina. We'll make a liberal Argentina," Milei asserted. His administration believes that the reforms will "accelerate the growth process, mainly by getting investment into the country," according to a government official who spoke on condition of anonymity.

Key Takeaways

• Argentina's Senate approved a key economic reform bill after a tie-breaking vote by Vice President Victoria Villarruel.
• The bill's passage was met with violent protests in Buenos Aires, with demonstrators clashing with police.
• The reforms aim to address Argentina's severe economic issues, including near 300% inflation and rising poverty.
• The intense debate and protests reflect deep national divisions over the proposed economic changes.
• The bill will return to the lower house for another vote due to Senate amendments, with President Milei committed to pushing his economic agenda forward.

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