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)

BARCELONA, Spain (AP) — This was Lamine Yamal's season.

So it just had to be the teenage phenom who scored the decisive goal to clinch Barcelona's 28th Spanish league title.

And what a goal it was.

The 17-year-old struck the winner in Barcelona's 2-0 victory at crosstown rival Espanyol on Thursday when he slid past two defenders outside the area and whipped one his now trademark left-footed curlers into the corner of the net.

It was a perfect culmination to Yamal's last 10 months.

After helping Spain win the European Championship last summer, Yamal excelled for Barcelona this campaign with his goals, dribbling and playmaking as he confirmed his status as the next big star of global soccer. Along with Raphinha, Pedri and company, and Barcelona was unstoppable.

“I always try my best and today I was lucky it went in,” Yamal said. "I am very happy I could help the team and celebrate it.”

Fermín López ensured the win in stoppage time after Espanyol was reduced to 10 men in the 80th when Leandro Cabrera saw a direct red for hitting Yamal in the stomach while disputing a ball.

Barcelona won the title with two rounds remaining. It completed a domestic double with the Copa del Rey title — treble if you add the Spanish Super Cup — and reached the Champions League semifinals in a fantastic first season for coach Hansi Flick.

Flick’s team virtually ended Madrid’s title defense when it beat its top rival 4-3 on Sunday, making it four of four clasico victories across all competitions this season.

Madrid's victory over Mallorca on Wednesday impeded Barcelona from winning the title without playing. But the Catalan club needed just two points from its final three games of the season.

Barcelona’s players danced briefly on the field to celebrate while sprinklers wet them with water.

“You don’t win a league every day and we have to enjoy this and give it the value it has,” said Barcelona midfielder Pedri after completing his 200th game for his club at age 22.

Barcelona dominated the domestic competitions, winning 15 and drawing two of its league games in 2025. Toss in the cups, and the only tiny blemish was coming oh-so-close to reaching the Champions League final before it fell in gut-wrenching fashion at Inter Milan.

Yamal credited his coach for inspiring a core of players who had won nothing last season under Xavi Hernández.

“We are thankful for what Xavi have us, but it is true that coach (Flick) has given us a new life,” Yamal said.

Looking back on his arrival in the summer, Flick said that he had instilled a “positive” attitude in his team and it had adapted well to his style of play that requires a high defensive line and all-in pressing.

“Barcelona has to win titles and three titles is really great,” Flick said. “I suffered a bit after the game in Milan, but after winning three titles I am very happy and the club is too.”

Espanyol outplayed its wealthier rival in the first half. But Urko González shot wide on a counterattack early on and Javi Puado couldn’t beat Wojciech Szczesny in a one-on-one opportunity.

But Yamal's great shot in the 53rd minute put Barcelona in control. Espanyol goalkeeper Joan García, who is linked to a move to a big club this summer, including Barcelona, dove but couldn’t reach the perfectly placed shot.

On Yamal’s goal, Pedri said: “He scored two goals like that today in practice. We are fortunate to have him on our side.”

Espanyol needed to a good result from the derby as it hopes to stay out of the relegation fight. Espanyol remained in 16th place and five points from the drop zone.

The game was briefly paused by the referee in the opening minutes when a car rammed into a crowd outside the RCDE Stadium, injuring several people. Authorities said it was an accident and not related to the game.

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Barcelona fans celebrate in the street after their team won the Spanish La Liga soccer championship in Barcelona, Spain, Thursday, May 15, 2025. (AP Photo/Emilio Morenatti)

Barcelona's Hector Fort celebrates at the end of the Spanish La Liga soccer match between Barcelona and Espanyol at Lluis Companys Olympic Stadium in Barcelona, Spain, Thursday, May 15, 2025. (AP Photo/Joan Monfort)

Barcelona players celebrate at the end of the Spanish La Liga soccer match between Barcelona and Espanyol at Lluis Companys Olympic Stadium in Barcelona, Spain, Thursday, May 15, 2025. (AP Photo/Joan Monfort)

Barcelona players celebrate after a goal during a Spanish La Liga soccer match between Espanyol and Barcelona in Barcelona, Spain, Thursday, May 15, 2025. (AP Photo/Jose Breton)

Barcelona's Fermin Lopez, celebrates after scoring his side's second goal during a Spanish La Liga soccer match between Barcelona and Espanyol at Lluis Companys Olympic Stadium in Barcelona, Spain, Thursday, May 15, 2025. (AP Photo/Joan Monfort)

Barcelona's Lamine Yamal reacts after scoring during a Spanish La Liga soccer match between Espanyol and Barcelona in Barcelona, Spain, Thursday, May 15, 2025. (AP Photo/Jose Breton)

Espanyol's Antoniu Roca, left, attempts a shot at goal in front of Barcelona's Gerard Martin during a Spanish La Liga soccer match between Barcelona and Espanyol at Lluis Companys Olympic Stadium in Barcelona, Spain, Thursday, May 15, 2025. (AP Photo/Joan Monfort)

Espanyol's Javi Puado, left, attempts a shot at goal in front of Barcelona's Andreas Christensen during a Spanish La Liga soccer match between Barcelona and Espanyol at Lluis Companys Olympic Stadium in Barcelona, Spain, Thursday, May 15, 2025. (AP Photo/Joan Monfort)

Barcelona's Lamine Yamal, left, celebrates with his teammates after scoring his side's opening goal during a Spanish La Liga soccer match between Barcelona and Espanyol at Lluis Companys Olympic Stadium in Barcelona, Spain, Thursday, May 15, 2025. (AP Photo/Joan Monfort)

Barcelona's Lamine Yamal spits out water as he warms up prior to a Spanish La Liga soccer match between Barcelona and Espanyol at Lluis Companys Olympic Stadium in Barcelona, Spain, Thursday, May 15, 2025. (AP Photo/Joan Monfort)

Barcelona's Lamine Yamal drinks water as he warms up prior to a Spanish La Liga soccer match between Barcelona and Espanyol at Lluis Companys Olympic Stadium in Barcelona, Spain, Thursday, May 15, 2025. (AP Photo/Joan Monfort)

Barcelona's Lamine Yamal, center, celebrates after scoring his side's opening goal during a Spanish La Liga soccer match between Barcelona and Espanyol at Lluis Companys Olympic Stadium in Barcelona, Spain, Thursday, May 15, 2025. (AP Photo/Joan Monfort)

Barcelona's Lamine Yamal, left, runs with the ball past Espanyol's Carlos Romero during a Spanish La Liga soccer match between Barcelona and Espanyol at Lluis Companys Olympic Stadium in Barcelona, Spain, Thursday, May 15, 2025. (AP Photo/Joan Monfort)

Barcelona's Lamine Yamal, left, celebrates with his teammate Alejandro Balde after scoring his side's opening goal during a Spanish La Liga soccer match between Barcelona and Espanyol at Lluis Companys Olympic Stadium in Barcelona, Spain, Thursday, May 15, 2025. (AP Photo/Joan Monfort)

Barcelona's Lamine Yamal attempts a shot at goal to scores his side's opening goal during a Spanish La Liga soccer match between Barcelona and Espanyol at Lluis Companys Olympic Stadium in Barcelona, Spain, Thursday, May 15, 2025. (AP Photo/Joan Monfort)