President Javier Milei of Argentina is currently embroiled in a public dispute with his Vice-President, Victoria Villarruel, concerning recent Senate motions that aim to increase pensions. The saga began after Milei expressed his frustration on social media about a significant defeat in Congress last Thursday, where senators voted overwhelmingly in favor of raising pensions—a move that he had firmly opposed.
Milei has publicly committed to veto the pension increase, arguing that the additional financial burden jeopardizes his plans to maintain a fiscal surplus, crucial for the country’s economic recovery. After the Senate, where Villarruel serves as president due to her vice-presidential role, allowed the contentious vote despite absence of government-aligned senators, Milei criticized her decision as a betrayal of their economic framework.
The motion passed with a vote of 52 in favor and only four abstentions, with advocates claiming it's necessary to help pensioners cope with rising costs. In contrast, Milei’s administration argues that increased spending contradicts their commitment to eliminate Argentina's persistent fiscal deficit.
Notably, January 2024 was marked as a significant milestone, as it was the first year in over ten years when Argentina recorded a budget surplus. Additionally, the country's monthly inflation rate recently dropped to 1.5%, the lowest in over five years, largely due to the austere measures implemented by Mileage.
Yet, these measures have sparked protests, with pensioners rallying outside Congress, demonstrating their discontent with the government's economic policies. Following the Senate's decision, Milei was quick to make his intentions known, stating decisively, “I bet a hundred thousand to one that you all know what I'm going to do. You know what? We're going to veto it."
In a pointed social media exchange, Milei even shared a post labeling Villarruel as a “traitor” and “stupid,” to which she responded, urging him to act maturely and prioritize the plight of pensioners and people with disabilities waiting for their overdue payments. Villarruel proposed that savings could be found by reducing expenses related to intelligence services and international travel—a practice Milei has engaged in since taking office in December 2023.
As the tension escalates between the two leaders, the future of Argentina’s economic strategy remains uncertain amid rising public discontent over financial aid for vulnerable populations.
