Argentina's Senate has passed a significant pension reform, directly challenging President Javier Milei's austerity measures aimed at balancing the government's budget. The reform, which ties pension increases to inflation, is expected to significantly raise government spending on pensions, potentially jeopardizing Milei's strict fiscal policies. This move by the Senate represents a major setback for Milei, who has been advocating for radical austerity to stabilize Argentina's economy. The increased pension spending, estimated to consume up to 0.8% of GDP next year, has heightened tensions between Milei and his opponents in Congress, marking a critical moment in Argentina's ongoing economic challenges.
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