BUENOS AIRES, June 10, 2025 (AP) — Argentina's Senate descended into chaos Wednesday when opposition lawmakers walked out of a budget committee session, depriving the chamber of a quorum and halting debate on President Javier Milei's omnibus fiscal reform bill — the centerpiece of his economic agenda and a condition for continued IMF support.
The walkout, orchestrated by the Peronist Union for the Homeland bloc and joined by several provincial governors' allies, came just minutes before a scheduled vote on the bill's revenue provisions. With only 38 of 72 senators present, committee chair Martín Lousteau was forced to adjourn the session without a vote, the third such suspension in two weeks.
The omnibus bill, which the lower house passed in diluted form in April after a 22-hour debate, would consolidate 47 federal agencies into 12, cap public sector wage growth at 80% of inflation, and reduce provincial revenue-sharing transfers by approximately 800 billion pesos ($880 million) annually. Milei has framed it as essential to maintaining the fiscal surplus that has underpinned Argentina's IMF program and stabilized the peso.
The setback raises the stakes for a constitutional battle over Milei's reliance on emergency decrees (DNUs) to bypass Congress. The president has issued 14 DNUs since January, the most recent on June 3, rewriting labor market regulations and eliminating price controls on pharmaceuticals and medical devices. The June 3 decree also extended the trial period for new hires from three months to one year and made union dues opt-in rather than mandatory.
Presidential Spokesman Manuel Adorni said the government would not allow obstruction to derail Argentina's recovery, noting that the Constitution gives the president tools for exactly this situation.
Opposition leaders immediately threatened to challenge the June 3 decree in court. The Supreme Court, which has previously struck down portions of Milei's January DNU on procedural grounds, is expected to rule on the new challenge within 60 days. Chief Justice Horacio Rosatti has signaled the court will take an expedited review given the economic implications.
Political analysts said the confrontation leaves both sides exposed. Milei looks authoritarian if he keeps ruling by decree, but if he backs down, his base sees weakness. The opposition, meanwhile, has no alternative economic program and is focused on blocking rather than proposing.
The budget committee is scheduled to reconvene on June 17, though opposition leaders said they will not attend unless the government agrees to restore funding for public universities and provincial health transfers — demands Milei's team has so far rejected outright.
