'There is no money': Argentina's Milei vetoes pension boost passed by Congress
FILE PHOTO: Argentina's President Javier Milei attends an event marking the 31st anniversary of the 1994 bombing attack on the Argentine Israelite Mutual Association (AMIA) community centre, in Buenos Aires, Argentina July 18, 2025. REUTERS/Mariana Nedelcu/File Photo
BUENOS AIRES - Argentine President Javier Milei on Monday vetoed a pension boost and a bill strengthening protections for people with disabilities, which lawmakers had passed in July, saying that they put fiscal balance at risk.
The decision to veto the bills had already been announced by Milei last month, although Congress - where the libertarian president does not have a majority - can still overturn the vetoes.
The vetoes come less than three months before Argentina's mid-term elections, seen as a gauge of approval for the Milei administration, which has managed to reduce triple-digit annual inflation but whose austerity policies have had a social impact.
After the publication of an executive order with the vetoes, the Argentine presidency said in a statement that the bills had been approved by Congress in an irresponsible manner, without identifying funding sources.
"This president prefers to tell an uncomfortable truth rather than repeat comfortable lies: there is no money," the statement said. REUTERS
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Straits Times
4 minutes ago
- Straits Times
Hong Kong asks insurers to return investing roles from Singapore, sources say
Sign up now: Get ST's newsletters delivered to your inbox Life insurers have become the latest target in Hong Kong's efforts to compete with Singapore in retaining talent and capital. HONG KONG - Life insurers have become the latest target in Hong Kong's efforts to compete with Singapore in retaining talent and capital. Over the past year, Hong Kong's insurance regulator has been steering some of the financial hub's biggest life insurers to move investment decision-making functions back to the city following their relocation to Singapore, according to people familiar with the matter. The push, led by the Hong Kong Insurance Authority (hkia), started in early 2024 and is focusing on companies including AIA Group, the people said. The HKIA is a regulator independent of the government, according to its website. Drawn by incentives such as tax advantages offered by the Monetary Authority of Singapore (mas), some insurers have in recent years accelerated efforts to establish the city-state as a regional asset management hub, despite making policy sales mainly in Hong Kong, the people said. While the move to Singapore was allowed by the HKIA, a number of emerging challenges prompted concern among regulators. Intensifying competition between the two financial hubs for talent and capital - as well as rising concentration risks among asset managers - triggered scrutiny over the relocations, the people said. The Hong Kong insurance regulator is able to track the decision-making process when insurers notify them about their outsourcing decisions. Based on a guideline known as GL14, the HKIA can look through detailed arrangements between the insurers and the investment managers who they entrust money with, including the amount and the location. In at least one case, the HKIA specifically looked at whether the Hong Kong investment team ultimately decides the mandates, according to one of the people. The regulator has indicated it wants to create more jobs in the city, including from insurers, fund managers and law firms, the people said. Top stories Swipe. Select. Stay informed. Singapore Hidden vapes and where to find them: Inside ICA's clampdown at land checkpoints Singapore East-West Line MRT service resumes after delays lasting around 5 hours; track point fault fixed Opinion Internships open doors but only if students can first find the key World Meta says it's working to thwart WhatsApp scammers Singapore Jail for 2 friends who swopped seats in car to try and evade justice after drinking alcohol Singapore Sorting recyclables by material could boost low domestic recycling rate: Observers Singapore SM Lee receives Australia's highest civilian honour for advancing bilateral ties Asia Trump's sharp India criticism corners Modi as rift deepens The HKIA said there is no statutory requirement for long-term insurers to maintain their assets in Hong Kong or to exercise their investment-decision making in the city. Nonetheless, all authorizSd insurers are expected to manage their assets prudently and avoid the building up of concentrated exposure. This will ensure insurers can swiftly settle claims and meet contractual obligations for the protection of policyholders, the regulator said. The HKIA said it will also pay due regard to potential legal and operational constraints on fungibility of capital across different jurisdictions. Singapore presence In the case of AIA, it established an asset management company under a structure known as the variable capital company in Singapore in 2021. The insurer operates in 18 Asian markets with businesses ranging from life insurance to pensions. AIA has since been moving assets in private equity and global stock strategies from Hong Kong to Singapore, according to the people. Hong Kong's management arm is looking after mostly pension money raised from the city, the people added. With 198 employees, Singapore-based AIA Investment Management Private Ltd. (AIAIM) managed US$139 billion (S$179 billion) as of end 2024. AIA Group's total invested assets stood at about US$255 billion in the same period. AIA's Hong Kong-based senior group investment executives are in charge of setting up asset allocation principles and monitoring various managers, including AIAIM, but the fund selection decisions are in the hands of the Singapore investment team, the people said. AIA declined to comment. MAS said in a response to Bloomberg News that Singapore's asset management industry has seen healthy growth from diversified sources outside the city-state, including North America, Europe and Asia. The VCC structure offers investment funds greater operational flexibility and saves costs, it added. The number of companies with regional headquarters in Hong Kong dropped from 1,457 in 2021 to 1,410 in 2024, according to government data. One Hong Kong-based insurer was recently guided by people at the HKIA not to move assets into Singapore VCC structures, one person said. Assets under management across Hong Kong's asset and wealth management industry rose 13 per cent to HK$35.1 trillion (S$5.8 trillion), according to a Securities and Futures Commission annual survey with some 40 insurance firms. BLOOMBERG
Straits Times
4 minutes ago
- Straits Times
South Korea to offer visa-fee entry to Chinese tourists from late September
Sign up now: Get ST's newsletters delivered to your inbox SEOUL - South Korea will offer visa-free entry to tourist groups from China, for a temporary period from Sept 29 through June 2026, to boost foreign tourism ahead of an Asia-Pacific summit, the government said on Aug 6. The visa-free offer was first announced in March after China's decision last November to offer a visa exemption to South Koreans and foreign visitors from other countries. It also comes amid expectations that ties between the two countries will improve under the new South Korean administration of liberal President Lee Jae Myung. The decision to introduce the measure ahead of a Chinese holiday period in early October will help boost the domestic economy amid a recovery in foreign visits, the tourism ministry said, after a meeting to discuss measures to revitalise tourism ahead of the Asia-Pacific summit. South Korea will host a summit of leaders from 21 economies for the Asia-Pacific Economic Cooperation (Apec) forum from Oct 31 to Nov 1 in the southeastern city of Gyeongju, a gathering where Chinese leader Xi Jinping and US President Donald Trump might hold separate talks. REUTERS
Straits Times
4 minutes ago
- Straits Times
Asean's quiet diplomacy helped avert escalation in Cambodia-Thailand border conflict: Sec-Gen Kao
Sign up now: Get ST's newsletters delivered to your inbox SINGAPORE - As artillery fire echoed along the Cambodia-Thailand border in July, Asean moved swiftly, but discreetly, behind the scenes. Its intervention was pivotal in halting the most serious intra-Asean fighting in more than a decade, said Secretary-General Kao Kim Hourn in an exclusive interview with The Straits Times on Aug 5. 'I think what it has done constructively is to keep it under control, and then try to de-escalate. And then after that… they go back to negotiate,' he said, referring to the two Asean neighbours . Dr Kao noted that Asean had focused on managing the conflict rather than resolving its deeper political causes. Domestic dynamics in both Thailand and Cambodia – exacerbated by online nationalism and disinformation – had made substantive mediation difficult, he said. Still, he saw the eventual outcome as a success. A fragile ceasefire between Cambodia and Thailand was brokered in Kuala Lumpur on July 28, following emergency mediation led by Malaysian Prime Minister Anwar Ibrahim, whose country holds the Asean chairmanship in 2025. The talks, backed by the United States and China, brought together Cambodian Prime Minister Hun Manet and acting Thai Prime Minister Phumtham Wechayachai for a face-to-face , ending five days of clashes that left more than 40 dead and displaced over 300,000. Dr Kao said that Asean's intervention, particularly by Datuk Seri Anwar, was aimed at ensuring the situation did not spiral out of control. Within just five days, he noted, the mediation efforts had taken effect, and the grouping's actions had constructively helped keep the conflict contained. 'The Malaysian Prime Minister moved swiftly to address this issue head-on, and (it shows) that Asean is still very much relevant,' he said, praising Malaysia's prompt diplomatic push. Regarding his own role in the talks, Dr Kao, a Cambodian, was unequivocal: 'I have to perform my duties as Secretary-General of Asean, not as representative of Cambodia. 'I have to be seen as absolutely impartial, neutral, very clear.' To that end, he had made it a point to be transparent in all dealings with ministers and colleagues from all Asean countries. Before he took the office of Asean Secretary-General in 2022 , Dr Kao said, Cambodian leaders had reminded him: 'You're not Cambodia.' 'Wake-up call' for Asean Even with de-escalation, Dr Kao warned that the situation in Thailand and Cambodia exposed a worrying trend: the rise of online nationalism and disinformation. On social media, nationalist memes and misinformation circulated widely in both countries, stoking tensions even after the ceasefire was announced. Online users traded blame, revived old grievances, and in some cases, agitated for action. Dr Kao said such rhetoric posed real dangers, noting that Cambodian authorities had issued clear instructions to the public to refrain from sharing provocative material and warned that individuals would be held accountable for what they posted. 'We don't want to have permanent damage, so we want to recover as soon as possible the (ties) between the two countries,' he said. The flare-up between Thailand and Cambodia, he added, should serve as a 'wake-up call' for Asean to make sure that it works hard to keep the peace and treat everyone in the region like friends and family. 'Yes, we have challenges… But we have to manage, we have to resolve, we have to sort out those challenges. We cannot expect that everything is going to be smooth sailing,' he said. Preparing for peace and the future To support the fragile ceasefire, Dr Kao said Asean is exploring the deployment of a monitoring team. Details are under discussion. 'Right now, they are still talking (about) what kind of composition, what are the standard operating procedures,' he said, adding that all member states are welcome to contribute personnel voluntarily. Cambodia has also requested assistance from the Asean Coordinating Centre for Humanitarian Assistance on disaster management (AHA Centre), the regional body tasked with coordinating relief efforts during natural disasters and emergencies. Set up in 2011 and based in Jakarta, the AHA Centre has historically focused on responding to typhoons, earthquakes, and floods. But it has also been deployed in conflict-related situations involving humanitarian needs. It was activated in 2021 to provide aid to Myanmar in the wake of political unrest and internal displacement following the military coup. It was also involved in delivering assistance during the 2017 Rohingya refugee crisis, helping coordinate Asean's response to the humanitarian fallout in Rakhine state. Looking to the future, Dr Kao said Asean's long-term strength would depend not just on conflict management but also on its ability to evolve and adapt. One of the key developments on the horizon is the accession of Timor-Leste as Asean's 11th member. The South-east Asian nation of 1.4 million formally applied to join Asean in 2011 and received in-principle endorsement in May. Its membership is expected to be formalised at the 47th Asean Summit in October. Dr Kao said the Timorese government has been moving quickly and has shown a strong commitment to joining Asean. He noted that officials from Timor-Leste have been attending a wide range of meetings to familiarise themselves with the grouping's procedures, processes and protocols. 'To their credit, they have been working very fast, and it has been very forthcoming,' he said. 'They are ready by October this year to comply with the decision of Asean leaders.' He added that Timor-Leste's preparations go beyond the foreign ministry and involve aligning the entire government system with Asean's requirements, which include adopting legal instruments and treaties, as well as participating in capacity-building programmes and training. But Dr Kao noted that Asean today is far more complex than during earlier waves of expansion, and noted how the work does not stop with membership to the group. A pressing task is the conclusion of the Code of Conduct (COC) in the South China Sea, a long-delayed framework intended to reduce tensions in one of the world's most contested waterways. Four Asean member states – the Philippines, Brunei, Malaysia, and Vietnam – along with China and Taiwan, have overlapping claims in the area. The Philippines, which will assume the Asean chairmanship in 2026, has signalled a strong desire to fast-track the COC. Philippine President Ferdinand Marcos Jr. called for 'the urgent need to accelerate the adoption of a legally binding code of conduct… to safeguard maritime rights, promote stability and prevent miscalculations at sea' during the 46th Asean Summit in May. Negotiations with China have dragged on for more than two decades since the 2002 Declaration of Conduct. As of mid-2025, talks had only just reached the stage of negotiating a draft text. Dr Kao acknowledged the delays but said there has been a renewed push for progress. 'There is a general consensus that we should have the COC ready by… July next year, which is basically mid‑term of the Philippine chairmanship,' he said. 'So… we have to backtrack, meaning we have to work very hard to conclude the major issues and then later on have the time for legal scrubbing, internal discussion and all that.' While careful not to overpromise, Dr Kao made clear he believes in Asean's ability to deliver. The bloc' s strength, he suggested, lies in consensus-building, persistence, and trust among its members, even if progress is incremental. 'I always work on the basis of optimism,' he said, with a smile. 'So as long as we focus on building consensus and trying to reach all the low-hanging fruits and build momentum, I think we will reach somewhere.'
