Argentina lawmakers clear key hurdle in Milei's reform bill

Argentina's lower house of Congress has approved in general terms a sweeping cost-cutting reform bill after three days of heated debate.

The legislation, dubbed the omnibus bill, has some 300 articles and they are still subject to negotiations in the lower house. The initiative must also be approved by the Senate.

The sweeping package has kicked up a storm in the country, with massive protests against it.

Milei thanks opposition leaders

Milei thanked opposition leaders who supported the initiative, saying “they understood the historical context and chose to end the privileges of the caste and the corporate republic, in favor of the people, who have been impoverished and are hungry."

While they approved the omnibus legislation in general terms, some lawmakers have expressed reservations about articles relating to the privatization of state-run companies and the delegation of legislative powers to the president.

Other articles in the bill aim to lift state controls over the economy, reform the administrative, health and education sectors, and raise public service and utility rates.

Inflation continues to rise

Milei, who describes himself as a libertarian and anarcho-capitalist, has promised to drastically reduce state spending to shore up a government budget deficit that he says is fueling inflation.

Argentina was already suffering from one of the world's highest rates of inflation last year and prices have soared further under Milei's watch as he moved to devalue the Argentine currency by 50% after taking office in December.

Milei cut transport and energy subsidies, and said his government won't renew contracts for thousands of state employees hired before he took office.

The president has faced pushback from labor unions who says the new reforms will hurt the poor.

rm/sri (Reuters, AP)