Argentina lower house approves Milei reform bill, detailed vote underway

The so-called "omnibus" bill, which libertarian Milei hopes will help attract investments and tamp down inflation in the crisis-hit South American country, will move up the Senate if enough of the articles are individually sanctioned. Milei, a libertarian economist who won a shock election last year pledging to shake up the country, only has a minority in Congress, but has won support from allies in the lower house after months of negotiations and concessions on the reform package, which was rejected at a previous vote in February.

Argentina's lower house of Congress on Tuesday approved a sweeping economic reform plan proposed by President Javier Milei in an overall vote, with lawmakers also giving backing to some key articles of the bill as detailed voting continued. The so-called "omnibus" bill, which libertarian Milei hopes will help attract investments and tamp down inflation in the crisis-hit South American country, will move up the Senate if enough of the articles are individually sanctioned.

Milei, a libertarian economist who won a shock election last year pledging to shake up the country, only has a minority in Congress, but has won support from allies in the lower house after months of negotiations and concessions on the reform package, which was rejected at a previous vote in February. "This support will allow Milei to govern," conservative lower house lawmaker Victoria Borrego told Reuters, referring to the president's ability to rally political support.

The reform package, which is expected to face stronger opposition in the Senate, would give the executive the power to restructure or privatise public bodies, ease red tape to attract investments and tweak labour regulations. Lawmakers are still to vote on a separate fiscal package that would raise taxes on high-income earners, a proposal that has been met with strong opposition from local unions, and sharply cut the rate on personal assets.

Argentina is suffering annual inflation nearing 300%, which Milei aims to bring down with tough austerity, though that has already hit consumption, manufacturing and economic activity. Poverty is also rising as inflation saps real incomes. "Voting for this law is legitimising a project that does not solve the problems of Argentines, neither poverty nor inflation," Peronist opposition member Santiago Cafiero, a minister in the previous government, wrote on X.

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