Argentina’s Congress overturns President Javier Milei’s veto on funding

As Congress overturned his vetoes of laws increasing funding for public universities and paediatric care, Argentina’s struggling President Javier Milei has experienced a new setback.

Senators on Thursday invalidated both of the chamber’s deputies’ vetoes, bringing the total number of laws upheld by Congress to three, despite Milei’s vehement opposition to the budget-slashing bill.

Milei, who has implemented extensive austerity measures to reduce the size of the government, claimed that Argentina’s fiscal balance would be harmed by new spending.

In the run-up to the crucial October 26 midterm elections, Milei, who is supported by the United States, struggles to put an end to the Argentinian peso.

The right-winger, 54, has been in power since December 2023 when his party was defeated by the center-left in Buenos Aires provincial elections last month.

His political invincibility was shredded by those elections, which were seen as a bellwether prior to the midterm elections, and stifled markets.

The impact of the cuts has a sense of disenchantment and anger in Buenos Aires, according to political consultant Sebastian Halperin.

He added that Milei had not collaborated with governors who control the way lawmakers in their province’s legislatures cast ballots.

The US government announced last week that it was talking with Argentina about a $20 billion swap program to stabilize the peso.

At recent meetings in New York, US President Donald Trump praised his close ally, saying: “He’s doing a fantastic job.”

As Milei attempts to obtain a credit-swapping line from the US, the two are scheduled to meet in October.

However, according to analysts, the president still needs a strong midterm result to keep his position in terms of stabilizing Argentina’s economy.