Argentina’s upper house narrowly passed a controversial bill critical to President Javier Milei’s economic reform plans, despite clashes between protesters and police in the streets. The bill, which received provisional approval in a late-night session with a tie-breaking vote, includes radical measures on privatisation and tax breaks for investors. Vice President Victoria Villarruel described the divide in Argentina as between those advocating for change and those resorting to violence.

In response to the Senate’s vote, thousands of protesters took to the streets, leading to violent clashes with federal security forces using tear gas and water cannons. Several people, including lawmakers, were treated at hospitals for injuries sustained during the protests, while others were arrested. Milei, an “anarcho-capitalist” seeking to overhaul the government and economy, hailed the Senate’s approval of the bill as a triumph for the Argentine people and a step towards national recovery.

The bill is a central component of Milei’s economic reform agenda, aiming to address the country’s deep economic crisis exacerbated by previous executive measures. The 238-article reform bill includes provisions for a state of economic emergency, privatisation of public companies, and labour reforms that have sparked criticism from both right-wing and left-wing lawmakers. Critics fear that these measures could worsen poverty and economic instability, leading to increased unemployment and consumer prices.

Opposition senators raised concerns about the bill’s potential reversal of decades of progress, particularly regarding labour rights. The bill had previously been approved by the lower house and will return for a final vote following the Senate’s preliminary approval. Criticism of the bill extends to various sectors of society, including social organizations, retirees, teachers, and labour unions. Protesters expressed fears about the impact of the bill on their livelihoods and rights, with many voicing concerns about losing labour and pension protections.

As Milei celebrates the Senate’s approval as a victory for his reform agenda, the country remains divided over the implications of the bill. The clashes between protesters and security forces highlight the deep-seated issues surrounding economic reforms and the challenges faced by the government in implementing controversial measures. The future impact of the bill on Argentina’s economy and society remains uncertain, as different voices continue to express their opposition or support for the proposed changes.

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