Dialoguists Seek a New Proposal in the Senate to Avoid Javier Milei’s Veto
After thwarting the Kirchnerism’s plan to advance in the Senate with the new pension update formula, the dialoguist blocks are exploring different alternatives to the approval of the House of Representatives and, through a series of projects, are accelerating a new mobility scheme that includes financing sources to shield it from any veto intention of President Javier Milei.
Next Monday, a meeting of advisors is scheduled to analyze the common points between what was approved by the two-thirds in the lower house and the 4 projects in the Senate, while on Wednesday, the plenary of the Labor and Social Security and Budget commissions will be resumed with the presence of technical officials.
It was initially ruled out that a new pension formula could be in place this month, as the first session is expected to be convened for August because the winter recess in Congress begins on Monday, the 15th.
The plenary of the Labor and Social Security and Budget commissions of the Senate will meet again on Wednesday. Photo: Emmanuel Fernández.
Impact on the Community: Four Senate Projects Added to the Debate on the New Pension Formula
Two of the proposals in the upper house belong to Martín Lousteau and propose a calculation formula for pensions and retirements with monthly updates based on the Consumer Price Index (IPC) of INDEC, with a safeguard in case of deflation.
The other proposal that is part of the debate was presented by non-K Peronist Edgardo Kueider (Federal Unity – Entre Ríos), who proposes the creation of a pension unit of account, setting it at a value of $1000 and requiring the Central Bank to publish its daily update based on the Reference Stabilization Coefficient, which reflects the retail inflation by calculating the average daily variation rate of the IPC for the previous month.
The fourth project bears the signatures of senators Edith Terenzi, Pablo Blanco, Víctor Zimmermann, Flavio Fama, and Daniel Kroneberger, and promotes an emergency adjustment of pension benefits based on a mobility index that will come from the IPC and will be applied monthly.
From these initiatives along with the approval of the House of Representatives, senators will try to produce a report agreed upon by the different opposition blocks, although initially it is unlikely to pass with the two-thirds majority as in the House of Representatives.
It is important to note that the approval in the House of Representatives also includes a minimum taxable amount, a compensation for inflation in January, an updating system, the payment of firm judgments, and the financing of provincial funds that were not transferred to the Nation, leading to a debate on whether it is actually a pension reform rather than an update.
In the case of Córdoba, the funds owed to cover the pension deficit amount to $13 billion monthly, approximately $80 billion since Milei took office. In the case of Santa Fe, there is talk of a debt of $700 billion due to deficits over the last 4 years, equivalent to an annual infrastructure plan.
– NAG
