In major setback for Argentina's Milei, sweeping reform bill sent back to committee

BUENOS AIRES (Reuters) - A major economic reform package championed by Argentina's libertarian President Javier Milei will be sent back to a legislative committee for consideration, the president's party said on Tuesday, marking a major setback for the bill after lawmakers rejected many of its provisions.

The rejections played out during the article-by-article approval process, after legislators voted to approve the so-called "omnibus" proposal in general terms late last week.

The bill, which had already been significantly reworked by lawmakers, still included provisions to allow for the privatization of state entities, changes to hundreds of regulations, as well as measures to enable reductions in state subsidies.

Milei's ruling Libertad Avanza party, which controls only a small number of seats in Congress, lashed out at what it labeled treasonous behavior by lawmakers opposed to the bill in a post on X, acknowledging it must now return to committee.

Some opposition legislators called on those backing the reform package to compromise.

"We ask the ruling party to have some flexibility. They love to keep losing," said opposition lawmaker Miguel Pichetto during the legislative session.

(Reporting by Nicolas Misculin; Editing by David Alire Garcia)