Police in Buenos Aires used water cannons and tear gas to deal with violent protests after the Argentine Senate narrowly approved the first round of tough austerity measures proposed by President Javier Milliheit.
The outcome came after protesters demanding senators reject Millay’s plans for cuts and economic deregulation hurled sticks, stones and Molotov cocktails at police and overturned cars.
Dozens of protesters were treated by medical staff in the streets, and police said 20 officers were injured in the clashes. At least five opposition lawmakers said they were hospitalized after being hit by police pepper spray.
Thousands of bankers, teachers, truck drivers and workers from various unions gathered around the Capitol throughout the day, banging drums, blowing trumpets and chanting, “Our country is not for sale!” and “We will defend our nation!”
After 11 hours of heated debate, senators voted 37-36 in favor of the bill late Wednesday, delivering a first legislative victory for Libertarian leaders seeking to enact their ambitious agenda, but lawmakers must still approve the measures separately in clause-by-clause votes expected to continue through the night.
Even if the Senate approves the revised bill, Milley still needs approval from the House of Representatives before he can formally pass his first bill since taking office in December.
The president is due to attend the G7 summit, which begins in Italy on Thursday, at the invitation of far-right Prime Minister Giorgia Meloni.
The fervent right-wing economist came to power promising to solve Argentina’s worst economic crisis in two decades, at a time when annual inflation is approaching 300 percent and recession is deepening.
But as a relative newcomer, his party has only a handful of seats in parliament and is struggling to build consensus with the opposition.
Senators are voting on two bills: a tax reform bill that would lower the minimum income tax threshold, and a 238-section state reform bill that passed the House of Representatives in late April after weeks of negotiations.
Originally dubbed a “composite bill” with more than 600 provisions, the now-watered-down version still gives the president sweeping legislative powers in areas including energy, pensions and security.
The sheer scale of the proposal and stiff opposition to it have limited progress.
“The weakest president in history is trying to pass the biggest bill in history,” said Ana Iparraguirre, an Argentina-based analyst at Washington strategy firm GBAO. “That’s the contradiction.”
Unlike Argentina’s previous presidents since the return of democracy in 1983, Milley failed to pass a single bill in his first six months in office. Instead, the populist outsider relied on executive power to cut state spending and sweeping away economic regulations.
“Today it’s almost more important for Millay to show he can pass legislation than what he passes in Congress,” said Lucas Romero, director at Synopsys Consultants.
The bill faces resistance from the leftist Peronist movement loyal to former President Cristina Fernández de Kirchner, which has dominated Argentine politics for the past two decades and also exerts influence over the country’s powerful labor unions.
“If this law passes, we will lose many of our work rights and pension rights,” said Miriam Rajovitcher, a 54-year-old teacher who joined the protest with fellow middle-class Argentinians who said they have had to rebuild their lives since Milley cut school budgets, devalued the currency and caused inflation to soar. “My situation is worse.
The rally turned tense as hundreds of riot police used shields to push back angry protesters who tried to break through barricades.
Police used pepper spray, water cannons and tear gas against the large crowds, while protesters set fire to two overturned cars and threw Molotov cocktails.
“Today the government declared war on the Argentine people,” Peronist lawmaker Cecilia Morrow told reporters outside parliament.
The presidential office called the protesters “terrorists” and accused them of “plotting a coup” by disrupting parliament.
Peronists hold 33 of the 72 seats in the senate, while Milley’s party, Liberty and En Marche, holds just seven.
Ahead of Wednesday’s vote, analysts said foreign investors, to whom Argentina owes a massive $44 billion, and the International Monetary Fund were watching to see whether Millay could reach a deal with his rivals to realise his ambitions.
“This is a make-or-break moment for the Millay administration,” said Marcelo J. Garcia, Americas director at geopolitical risk firm Horizon Engage. “If he doesn’t pass this, we’re heading for a political crisis.”
