Argentina’s Senate narrowly passed pro-Bitcoin President Javier Milei‘s sweeping economic reform bill on Wednesday.
What Happened: The bill passed with a 37 to 36 vote, with Vice President Victoria Villarruel casting the deciding vote, CNBC reported. The reform bill, a key part of Milei’s agenda to revive Argentina’s struggling economy, includes measures to privatize state entities, incentivize foreign investment, and reduce labor rights. Initially approved by the lower house in April, the bill will be reviewed point by point before expected full approval on Thursday.
Protests erupted as the Senate debated the bill, with anti-riot police using water cannons and tear gas to disperse demonstrators. At least 18 people were arrested, and a car was set on fire during the clashes, as reported by the Buenos Aires Times.
Vice President Villarruel commented on the division within the country, stating, “Today there are two Argentinas: 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.”
Leftist political parties and labor unions strongly oppose Milei’s economic reforms. The country has seen significant unrest, including a general strike in early May, as workers protest against the proposed austerity measures and the ongoing economic crisis.
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Why It Matters: The approval of Milei’s reform bill is a pivotal moment in his administration’s broader economic strategy. Since taking office, Milei has embarked on a comprehensive ten-point economic reform plan aimed at rejuvenating Argentina’s faltering economy. This plan includes depreciating the Argentine peso, downsizing ministries, and cutting subsidies on energy and transport sectors.
In March, Milei launched a campaign targeting state-owned enterprises for major reforms, including cost-cutting measures at numerous state-owned groups to achieve a balanced budget. This move has sparked intense disputes with employees and unions.
Additionally, in May, Argentina introduced 10,000 peso notes to combat severe inflation and currency devaluation. This move was aimed at simplifying the nation’s reliance on large quantities of cash following the collapse of its currency.
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Image by President of the Republic of Armenia via Wikimedia Commons
This story was generated using Benzinga Neuro and edited by Pooja Rajkumari
