Argentina's lawmakers debate Milei's 'omnibus' economic reform bill | Business and business news

The opposition has vowed to block the president's mega-bill to reform the economy, politics and even some aspects of private life.

Argentina's lower house of Congress has begun what is expected to be a marathon debate on libertarian President Javier Milei's mega-bill to reform the economy, politics and even some aspects of private life.

The government struggled on Wednesday to secure votes for the key “omnibus” reform bill, despite the left-leaning opposition vowing to block it.

The bill originally contained 664 articles, but almost half of them were lost in tough negotiations with the opposition. This is far more numerous than Milei's Libertad Avanza party, which only holds 38 of the 257 seats in the lower house of Congress.

The bill is one of the main pillars of Milei's reform efforts to address the South American country's worst economic crisis in decades, with inflation topping 200 percent and state coffers empty.

It is the president's first major test since the self-proclaimed “anarcho-capitalist” took office in December after a surprise election victory in which he campaigned with chainsaw promises to cut spending and the size of the state.

Milei, 53, faces the challenge of winning over allies and pushing the bill through. His government last week removed a controversial tax section from the bill to shore up support.

“Today, politicians have the chance to repair the harm they have caused to the Argentine people,” Milei’s office said, urging lawmakers to support the bill.

In a sign of the challenge ahead, the main Peronist opposition bloc, Union por la Patria, the largest single group in Argentina's National Congress, said it would reject the bill and posted an image with the slogan: “No to the omnibus bill” on X.

“We reject the omnibus bill because it gives fuel to Milei's chainsaw and disrupts the daily lives of Argentines,” wrote Peronist politician and former foreign minister Santiago Cafiero, referring to his austerity plans to eliminate a high budget deficit.

Milei began his term by devaluing the peso by more than 50 percent, cutting government subsidies for fuel and transportation, halving the number of ministries and scrapping hundreds of rules designed to deregulate the economy.

His extensive reform package touches all areas of public and private life, from privatization to cultural issues, the criminal code and divorce to the status of football clubs.

On Wednesday, hundreds of demonstrators gathered outside parliament to express their dissatisfaction with the reform law, AFP news agency reported.

Moderate opposition MPs have warned that they will seek further changes to the bill, particularly on the thorny issue of delegating special powers to the executive in an economic emergency, as well as the scale and extent of privatizations.

If the bill passes in the House – a debate that will likely extend beyond Wednesday – it would be sent to the Senate next week.