Argentina Chamber of Deputies achieved a crucial milestone on Friday by giving general approval to President Javier Milei's ambitious economic reform bill, AP reports.

The omnibus Milei reform bill, comprising over 300 articles addressing economic, administrative, criminal, and environmental changes, cleared the first hurdle in the lower house after three intense days of debate.

However, negotiations on specific details of the bill are pending, and the initiative requires approval from the Senate.

The approval in the lower house saw 144 votes in favor and 109 against, signaling a significant step forward for President Javier Milei's deregulation agenda.

The president expressed gratitude to opposition leaders supporting the initiative, emphasizing its historical significance in dismantling privileges and promoting the welfare of the people.

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Challenges and Clashes Surrounding Milei Reform Bill

While the general approval is a victory for Milei, the battle is far from over.

Lawmakers will scrutinize and vote on individual articles of the bill starting on February 6, according to Reuters.

The reform faces opposition from flag-waving protesters who clashed with riot police outside the congressional building in Buenos Aires during the debate.

Protester Liliana Lopez voiced concerns about the perceived sale of the country.

The omnibus Milei reform bill stands as a pivotal component of Milei's plan to revive Argentina's struggling economy, grappling with issues like inflation exceeding 200%, depleted foreign reserves, and impending debt repayments.

This legislative milestone represents President Milei's first significant test since assuming office in December.

President Milei's proposed reforms, embedded in the omnibus bill, aim to introduce sweeping free-market changes.

The president, known for his bold rhetoric and commitment to reducing the size of the state, emerged as a victor in the November election with promises to overhaul Argentina's economic landscape.

The proposed legislation, initially comprising over 650 articles, has undergone modifications to secure opposition support.

Key dropped proposals include tax system overhaul and changes to pension calculations. The bill still includes provisions for privatizing state-run companies, with notable exclusions like oil giant YPF.

Additionally, a contentious provision granting President Javier Milei special emergency powers, albeit reduced from two years to one, remains part of the legislation.

Controversy and Criticism

The Milei reform bill has not been without controversy, drawing criticism from some lawmakers who argue that it could undermine Argentina's democracy.

The bill, containing numerous articles for sweeping free-market reforms, is part of Milei's commitment to revamp the country's struggling economy and curb inflation, which currently stands at an annual rate of 211%, the highest in over three decades.

Over 40% of the population lives in poverty, according to official statistics, per BBC.

President Javier Milei, elected in November, warned of a potential "social catastrophe of biblical proportions" if radical reforms are not implemented.

The proposed legislation faced opposition from lawmakers, leading to significant reductions in its scope in an attempt to garner support.

Originally containing over 650 articles, dropped proposals included tax system overhaul and changes to pension calculations.

The Milei reform bill still suggests privatizing certain state-run companies, excluding oil giant YPF.

Notably, it retains a provision granting Argentina President Javier Milei special emergency powers for decision-making without consulting Congress, albeit reduced from two years to one.

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This article is owned by Latin Post.

Written by: Bert Hoover

WATCH: Argentina lawmakers debate Milei's 'omnibus' economic reform bill - From Al Jazeera English