Demonstrators and police clashed outside Argentina's Congress on Wednesday as senators passed a controversial reform package to privatize several state entities and introduce tax breaks for large investors.
The package was approved by the slimmest of margins, with 37 voting in favour and 36 against.
The deciding vote was cast by Vice President Victoria Villarruel, who as Senate president was able to prevent a stalemate by voting in favour, local media reported.
Outside, hooded demonstrators hurled stones and incendiary devices at officers in Buenos Aires, while police deployed batons and tear gas. Several cars went up in flames and around 20 suspects were arrested, according to broadcaster TN.
The office of Argentina's far-right, libertarian President Javier Milei congratulated security forces in a post on X for their "excellent actions in repressing" what it said were "terrorist groups" who had allegedly been attempting a "coup."
It later posted that the approval by the Senate was "a victory for the Argentinian people and the first step towards restoring our greatness." Due to numerous amendments, the legislation now returns to the lower hose for debate and another vote.
The reform package put forward by Milei's government provides for the privatization of several state-owned companies, tax breaks for large investors and labour market and tax reforms, among other things.
The left-wing opposition and social movements slammed the package as neoliberal and unfair, and the government has had to significantly curtail its proposals to be able to get backing in parliament.
Argentina has been gripped by a severe economic crisis for years. Annual inflation recently skyrocketed to almost 290%, one of the highest levels worldwide.
Milei's government recently cut thousands of jobs in the public sector, reduced subsidies and wound up social programmes, triggering demonstrations.
Critics say Milei's harsh austerity programme is plunging many people into poverty and is putting the country's future at risk.
Around 56% of people in the once prosperous country live below the poverty line, according to the Pontifical Catholic University of Argentina.
The second largest economy in South America suffers from a bloated state sector, low industrial productivity and a large shadow economy that deprives the state of much tax revenue.
