Macri vetoes Argentina utilities freeze

BUENOS AIRES, June 1, 2018 – Less than 24 hours after it was passed by Argentina’s Senate, legislation that would freeze or revert water and gas rates was vetoed by President Mauricio Macri on Thursday, local media reported.

The bill, approved by Congress after 12 hours of debate during a special session, was an attempt to quell unrest and provide relief to residences that have seen utilities rates rapidly increase since early 2016.

President Macri rejected the bill on the grounds that it is not within Congress’ constitutional mandate to set tariffs. He also said it would require funding of about USD 4 billion, the source of which was not specified by his opponents on the matter.

“I would love to wave a magic wand and have the silver appear, but that’s not the case,” President Macri said. “Argentines have to assume the true value of energy and consume less.”

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