MercoPress. South Atlantic News Agency

Milei vetoes university funding bill, sparks another feud with the opposition

Milei kept his word to not let anything affect his zero-deficit policies

Despite Wednesday's demonstrations against it nationwide, Argentine President Javier Milei vetoed the bill on funding public universities passed by Congress last month on the grounds that “it would seriously hinder the sustainability of public finances.” After the measure was announced, opposition lawmakers pledged to convene next week in a move to reverse it through Parliamentarian mechanisms.

 The bill approved on Sept. 13 provided for the updating of operational allowances and wages per the country's persistent inflation, which in August stood at 236.7% yoy.

“The bill under analysis does not intend to defend or guarantee the protection and sustenance of the financing of the National Universities, but seeks to damage the government politically,” Milei's decree reasoned. “The financing must be discussed at the time of sanctioning the National Budget for the corresponding fiscal year,” it went on.

Had it been applied, the new bill would represent a budgetary impact tantamount to 0.14% of the GDP. Hence, those opposing Milei's veto argued that it would not impact the country's coffers significantly. Nevertheless, the economist Milei found that such an initiative “would seriously hinder the sustainability of public finances” because it would force the Executive to find “unforeseen” funding, thus jeopardizing Milei's zero-deficit policy. Last month, the head of state also vetoed a pay increase for pensioners for the same reasons.

Milei's decree also pointed out that the rejected piece of legislation would also “establish a privilege for National Universities' staffers” when compared to other National Public Administration workers whose salary increases must be resolved through collective bargaining.

Under the Argentine Constitution, Congress may reverse a presidential veto provided it garners a two-third endorsement at each House in a new round of voting. Milei's ruling La Libertad Avanza (LLA) lacks the required majority and would need to strike alliances to survive the opposition's drive, which is already supported by The Radical Civic Union (UCR), Encuentro Federal, Coalición Cívica, Unión por la Patria (UP), and the leftwing parties.

In the case of pension rises, these blocs could not overcome LLA's partnership with former President Mauricio Macri's PRO and other minor political forces in addition to 5 UCR lawmakers. In a move to prevent an encore, taking part in Wednesday's protest in Buenos Aires were former President Cristina Fernández de Kirchner (CFK), former presidential candidate Sergio Massa, and former Buenos Aires Mayor Horacio Rodríguez Larreta, who confirmed his splitting from the PRO ranks.

The opposition blocs sent Thursday a request to Lower House Speaker Martín Menem to convene next Wednesday to discuss this matter.