Milei's economic reforms stall in Congress, bill returned to committee stage

President Milei's ‘omnibus’ mega-reform bill dealt major setback lawmakers in Congress prevented it from advancing; Bill was promptly returned to committee stage for a rewrite.

President Javier Milei's sweeping ‘omnibus’ reform package was dealt a major setback on Tuesday as lawmakers in Congress prevented it from advancing and the bill was promptly returned to committee stage for a rewrite.

Basically the law goes back to stage zero. This has never happened before, a law has been approved in "general" but then sent back to square 1 because it's just terrible lmao. The first ancap country is not doing so well.

The drama in the Chamber of Deputies came despite the bill winning general approval in the lower house last week. However, as lawmakers began voting on the mega-reform bill article by article on Tuesday, it became clear that the government did not have the numbers to pass key sections.

Oscar Zago, leader of the ruling La Libertad Avanza caucus, called for the bill to "to go back to committee" in a motion passed by lawmakers that left the Milei's sweeping economic reform bill – which includes privatisations and the revamping of the penal code – up in the air.

Milei responded furiously to the news. "Our government programme was voted for by 56 percent of Argentines and we are not willing to negotiate it with those who destroyed the country," the far-right leader said in a post on the X social network from Israel, where he is on an official visit.

The "Omnibus Law" won general approval in the Chamber of Deputies last Friday, though lawmakers planned to vote on its articles one-by-one in Tuesday’s session. However, Zago called for the bill to be returned to committee stage, declaring that the government’s allies in the opposition were committed to supporting key chapters of Milei's initiative.

The bill's key points include the delegation of emergency powers to Milei allowing him to govern by decree and sweeping state reform, including a swathe of privatisations of state firms.

Left-wing lawmaker Myriam Bregman told reporters that "this means they [the government] have to start from scratch.”. "The popular repudiation [of Milei’s reforms] was felt throughout the country," she continued, referring to protests that occurred last week in front of Congress during debate on the bill. The future of Milei’s deeply controversial reform package – known formally as the "Ley de Bases y Puntos de Partida para La Libertad de los Argentinos" – is now unknown.

Milei has previously vowed to toughen austerity measures should the bill not pass Congress and even to put it to the people in a referendum. The president’s office said in a second statement issued Tuesday night that provincial governors had taken “the decision to destroy” the bill and accused them of “betraying their voters.”

In last week’s marathon congressional sessions addressing the bill, the government was still negotiating articles with its allies even as the legislation was being debated.

Lawmakers did not receive a final copy of its text until the second day of sessions.

This an important bit. They were debating a law and they didn't know what the law is about lmao

Earlier in the afternoon, the deputies present had approved special "delegated powers" for Milei, which would allow him to govern by decree for at least one year, though opposition lawmakers managed to reduce its scope. "We are afraid of a weak democracy, which concentrates in a single person the possibility of extorting companies, organisations and citizens and ends up leaving us all defenceless,” said Coalición Cívica ARI deputy Paula Oliveto.

The original text of the law promoted the far-right idea of "limiting all state intervention that is not necessary to ensure the effective exercise of their constitutional rights.”

The government received narrow support (134 to 121 votes) for the declaration of an economic, financial, security, tariff, energy and administrative emergency. The opposition forced the withdrawal of declarations of fiscal, social security and health emergencies.

"Unfortunately, the adjustment will have to be greater ... it will be necessary to review each one of the government's expenses to comply with President Milei's order, which is zero deficit," said Presidential Spokesperson Manuel Adorni in comments to the LN+ channel.

Straight up making threats lol. I'm not sure they should keep fucking around like that...