Argentina's President Milei presents 2025 budget, vowing austerity and setting up a showdown

BUENOS AIRES, Argentina (AP) — Libertarian President Javier Milei of Argentina presented the 2025 budget to Congress late Sunday, outlining policy priorities that reflected his key pledge to kill the country's chronic fiscal deficit and signaled a new phase of confrontation with lawmakers.

In an unprecedented move, Milei personally pitched the budget to Congress instead of his economy minister, lambasting Argentina's history of macroeconomic mismanagement and promising to veto anything that compromised his tough slog of tight fiscal policy.

The president's budget proposal followed a week of political clashes in the legislature — where Milei controls less than 15% of the seats — over spending increases that the administration warns would derail its IMF-backed “zero deficit” budget. Opposition parties have sought to raise salaries and pensions with inflation to help hard-hit Argentines cope with harsh austerity.

“The cornerstone of this budget is the first truth of macroeconomics, a truth that for many years has been neglected in Argentina: that of zero deficit,” Milei told lawmakers, facing rows of empty seats as most of the hard-line opposition Peronist bloc, Unión por la Patria, skipped his address. “Managing means cleaning up the balance sheet, deactivating the debt bomb that we inherited.”

Milei's supporters interrupted his speech — packed with his usual libertarian talking points — with whoops and cheers.

It will fall to the opposition-dominated Congress, which controls the government’s purse strings, to approve the final budget. Milei’s political isolation makes matters fraught, setting up weeks of negotiations with rivals who insist on concessions.

But Milei vowed that nothing would stop him from pressing on with austerity.

“The budget is a declaration of principles,” said Argentine economist Agustín Almada. “Even if there is no compromise from the opposition, Milei will continue pursuing this fiscal contraction.”

If the stroke of a veto pen failed to prevent powerful lawmakers from spending, Milei promised to find other ways to cut down the state.

“We will only discuss the increase in spending when it comes along with an explanation of what we’ll cut to compensate for it,” Milei said.

Over Milei’s past nine months in office, dramatic cuts to public spending — which he says are necessary to restore market confidence in a country ravaged by one of the world's highest annual inflation rates — have racked up a fiscal surplus (0.4% of gross domestic product), something unseen in nearly two decades.

The austerity has also caused deep economic pain in Argentina, with nearly 60% of Argentines now living in poverty, up from 44% in December 2023, according to the Catholic University. Milei has balanced the budget by slashing financial transfers to provinces, removing energy and transport subsidies and holding wages and pensions steady despite inflation.

The fight over pensions reached a head last week, when Milei and his allies defeated a bill that would have boosted social security spending in Argentina, compromising the administration's fiscal discipline.

The bill had swept through both houses of Congress last month but opposition parties ultimately failed to obtain the two-thirds majority needed to override the president’s veto after government lobbying eroded support for the measure.

At the news of the bill's rejection Wednesday, outraged retirees — who have lost roughly half of their purchasing power due to inflation — poured into the streets of downtown Buenos Aires, where they faced off with riot police spraying tear gas and water cannons.

Milei warned that his fiscal shock therapy was not going to be easy. But his administration is betting that the worst has passed. Although Argentina's annual inflation hovers around 237%, Milei has retained popular support by working to keep a lid on monthly inflation, which has dropped to 4% since its peak of 26% last December when he took office.

In an optimistic statement about the budget Sunday, the Finance Ministry said it expected Milei's proposal to result in an annual inflation rate of just 18% by the end of 2025 and yield a 5% economic growth rate. Argentina's economy contracted by more than 3% in the first half of 2024.

But much of Milei's future depends on Congress. The government's pension law victory over congressional opponents proved short-lived, as lawmakers in the lower house also passed a bill increasing spending on public universities.

Milei has vowed to veto the bill.

Milei suffered another blow when lawmakers rejected his plan to raise spending on the intelligence services by more than $100 million. Despite all the belt-tightening, Milei has committed to increasing defense spending from 0.5% of GDP to 2.1%, raising the hackles of some lawmakers amid his cuts to health and education.

Although Milei has repeatedly compromised to get his legislation through Congress, he took a strident tone in Sunday's speech, describing lawmakers who disagree with him as “miserable rats who bet against the country."

Some analysts warned that Milei's exercise in political messaging spelled trouble.

“The image of a half-empty chamber of deputies during the president’s speech is an indication that it will not be easy for the government to pass this budget,” said Marcelo J. García, Director for the Americas at the New York-based geopolitical risk consultancy Horizon Engage. “Again, Milei seems to be prioritizing confrontation over compromise.”

Argentine President Javier Milei's parents, Norberto Milei and Alicia Lujan Lucich, attend his presentation of the 2025 budget in Buenos Aires, Argentina, Sunday, Sept. 15, 2024. (AP Photo/Natacha Pisarenko)

A woman scolds the police during protests against President Javier Milei's veto of a pension raise in Buenos Aires, Argentina, Wednesday, Sept. 11, 2024. (AP Photo/Natacha Pisarenko)

Argentina's President Javier Milei greets his sister Karina Milei as he arrives to Congress to present the 2025 budget in Buenos Aires, Argentina, Sunday, Sept. 15, 2024. (AP Photo/Natacha Pisarenko)

Argentina's President Javier Milei addresses Congress as he presents the 2025 budget in Buenos Aires, Argentina, Sunday, Sept. 15, 2024. (AP Photo/Natacha Pisarenko)

Argentina's President Javier Milei greets his sister Karina Milei as he arrives at Congress to present the 2025 budget in Buenos Aires, Argentina, Sunday, Sept. 15, 2024. (AP Photo/Natacha Pisarenko)

Argentina's President Javier Milei arrives at Congress to present the 2025 budget in Buenos Aires, Argentina, Sunday, Sept. 15, 2024. (AP Photo/Natacha Pisarenko)

Police guard Congress during protests against President Javier Milei's veto of a pension raise in Buenos Aires, Argentina, Wednesday, Sept. 11, 2024. (AP Photo/Rodrigo Abd)

Victoria Villarruel, Argentina's vice president, arrives to President Javier Milei's presentation of the 2025 budget in Congress in Buenos Aires, Argentina, Sunday, Sept. 15, 2024. (AP Photo/Natacha Pisarenko)

Police detain a protestor during a demonstration against President Javier Milei's veto of a pension raise in front of Congress in Buenos Aires, Argentina, Wednesday, Sept. 11, 2024. (AP Photo/Rodrigo Abd)

Argentina's President Javier Milei addresses Congress as he presents the 2025 budget in Buenos Aires, Argentina, Sunday, Sept. 15, 2024. (AP Photo/Natacha Pisarenko)

Argentina's Economy Minister Luis Caputo, second from left, greets Argentina's President Javier Milei upon as he arrives at Congress to present the 2025 budget in Buenos Aires, Argentina, Sunday, Sept. 15, 2024. (AP Photo/Natacha Pisarenko)

A demonstrator holds a banner that reads in Spanish "The 2025 budget, starving us to death" as Argentina's President Javier Milei presents next year's budget in Congress in Buenos Aires, Argentina, Sunday, Sept. 15, 2024. (AP Photo/Natacha Pisarenko)

Argentina's President Javier Milei sings the national anthem as he addresses Congress to present the 2025 budget in Buenos Aires, Argentina, Sunday, Sept. 15, 2024. (AP Photo/Natacha Pisarenko)

AVIGNON, France (AP) — Lawyers for some of the men accused of raping an unconscious French woman who had been drugged by her husband questioned her Wednesday about her habits, personal life and sex life, and even questioned whether she was truly unconscious during the encounters.

Gisèle Pelicot's testimony came a day after her ex-husband, Dominique Pelicot, told the court that for nearly 10 years, he drugged her and invited dozens of men to rape her as she lay defenseless. She fiercely rejected any suggestion that she was anything but an unwitting victim.

“Since I’ve arrived in this courtroom, I’ve felt humiliated. I am treated like an alcoholic, an accomplice. ... I have heard it all,” she said at the start of the day's proceedings, breaking at times with the remarkable calm and stoicism she has shown throughout the often harrowing trial that has gripped France.

Gisèle Pelicot, who was married to her husband for 50 years and shares three children with him, has become a hero to many rape victims and a symbol of the fight against sexual violence in France for waiving her anonymity in the case, letting the trial be public and appearing openly in front of the media.

Her ex-husband and the 50 other men on trial, who range in age from 26 to 74, face up to 20 years in prison if convicted.

Many of the defendants deny having raped Gisèle Pelicot. Some claim they were tricked by Dominique Pelicot, others say they believed she was consenting, and others argue that her husband’s consent was sufficient.

Gisèle Pelicot and her lawyers say the preponderance of evidence -- thousands of videos and photos shot by her ex-husband of men having sex with her while she appeared to be unconscious -- should be enough to prove she was a victim and was entirely unaware of what Dominique Pelicot was subjecting her to from at least 2011 until 2020.

But on Wednesday, defense lawyers focused their questions on the notion of consent and whether she was aware of what was happening at any point during some of the 90 sexual encounters that prosecutors believe were rapes.

“Don’t you have tendencies that you are not comfortable with?” one lawyer asked Gisèle Pelicot.

“I’m not even going to answer this question, which I find insulting,” she responded, her voice breaking. “I understand why victims of rape don’t press charges. We really spill everything out into the open to humiliate the victim.”

Another lawyer asked whether she was indeed unconscious during one of the encounters captured on video.

“I didn't give my consent to Mr. Pelicot or these men behind me for one second,” she said, referring to her ex-husband's co-defendants. “In the state I was in, I could not respond to anybody. I was in a state of coma — the videos will attest to it.”

The line of questioning upset her. “Since when can a man decide for his wife?” she said, stressing that only one of her ex-husband's 50 co- defendants had refused his invitation to rape her. That man met Dominique Pelicot online and invited him to rape his own wife, who was also drugged, authorities contend.

“What are these men? Are they degenerates?" she said angrily. "They have committed rapes. That's all I have to say.”

Another questioned the time and date stamps on the videos, and whether she thought the sexual acts lasted as long as the stamps suggested. “Rape is not a question of time,” she said.

“To talk of minutes, seconds. ... It does not matter how long they spent. It’s so degrading, humiliating what I am hearing in this room," she said.

At one point, Dominique Pelicot, who already said during the trial that all of the accusations against him are true, came out in support of his ex-wife, saying, “Stop suspecting her all the time ... I did many things without her knowing.”

On Tuesday, he testified that all of his co-defendants knew exactly what they were doing when he had them over, saying, “They knew everything. They can’t say otherwise.”

Gisèle Pelicot arrives at the Avignon court house, in Avignon, southern France, Wednesday, Sept. 18, 2024, where her ex-husband admitted in court that for nearly a decade, he repeatedly drugged his unwitting wife and invited dozens of men to rape her while she lay unconscious. (AP Photo/Diane Jantet)

This courtroom sketch by Valentin Pasquier shows Gisèle Pelicot, left, and her ex-husband Dominique Pelicot, right, during his trial, at the Avignon court house, in Avignon, southern France, Tuesday, Sept. 17, 2024. (AP Photo/Valentin Pasquier)