In a bold move, the government of President Javier Milei has officially vetoed the laws approved by Congress on July 10th that established an increase in pensions, the reopening of the pension moratorium for two years, and the declaration of an emergency in disability.
Through an official statement, the Argentine Presidency indicated that this measure, formalized in the Official Gazette through Decree 534/2025, vetoes the projects approved «irresponsibly, without determining the source of the funds, undermining fiscal balance and contradicting the popular mandate resulting from the presidential elections: to definitively eradicate inflation.»
The referenced laws would imply, in total, an additional expense for the National State this year of more than 7 trillion pesos, and close to 17 trillion for the year 2026. These amounts are equivalent to increasing 0.9% of the Gross Domestic Product (GDP) calculated for the current year, and 1.68% of the GDP estimated for the coming year.
«Certain sectors have promoted these projects in the midst of the electoral cycle with the obvious objective of campaigning, disguising their remarkable intention to provoke a strong rupture of the macroeconomic order that has cost Argentines so much to achieve,» the statement adds.
The Presidency mentions that this week, new projects of the «same caliber and with the same intention» will be addressed in Congress, «they intend to force the National Government to spend more without saying where to get the money.»
«This administration trusts that part of the political arc will understand the historical relevance of this moment and support the decision to break with a trend of more than 100 years that has plunged millions of Argentines into poverty,» the statement emphasizes.
«Unlike what the politicians of the caste do, this President prefers to tell an uncomfortable truth instead of repeating comfortable lies. There is no money, and the only way to make Argentina great again is with effort and honesty, not with the same old recipes,» the statement assures.
What Were the Vetoed Laws?
According to local media such as Perfil, the first vetoed regulation was the one that modified the pension mobility formula and granted a one-time 7.2% increase in pensions and annuities, along with an economic aid of up to $110,000 for some beneficiaries.
Meanwhile, another of the laws voted by Milei is the one that proposed the reinstatement of the moratorium and the flexibilization of the Universal Pension for the Elderly.
Finally, a third project allowed the declaration of an emergency in disability, which, according to the Government, would imply a massive expansion of the universe of beneficiaries.
