Argentine President Javier Milei’s “mega-decree” to change more than 300 regulations in the country amid a crackdown on high inflation and poverty has been rejected by the Senate, jeopardising the country’s economic reforms.
Opposition Senator Martin Lousteau stated that he voted against the bill because “it is unconstitutional.” However, the “megadecree” still has a chance of passing in the lower house, as it would need both chambers to reject it to be fully repealed.
According to experts, the decree must be approved by one chamber to become law, while the president’s party has a minority in both chambers.
President Milei took office last November promising to cut government spending to deal with the economic crisis in Argentina, which has been struggling with inflation and widespread poverty.
His latest “mega decree” seeks to change or repeal over 300 existing regulations, including limits on rents and the cost of essential goods, softening labour laws and starting privatisation.
Thursday’s vote marked Milei’s second legislative setback after rejecting another set of proposed reforms known as the “Omnibus Law” last month.
Milei’s reform initiatives to revive Argentina’s economy also include plans to devalue the peso by 50 per cent, cut transport and energy subsidies and suspend infrastructure projects.
