The measure could have derailed Macri’s plan for cutting the fiscal deficit he inherited from his predecessor, Cristina Fernández, a free-spending populist who governed for eight years and is now a senator.

Macri’s cabinet chief, Marcos Peña, told reporters that Macri rejected the measure as soon as it reached his desk.

“Argentina has to make a more of an effort to get closer to having a balanced budget,” Peña said. “The law that limits utility price increases is vetoed.”

Macri, elected in 2015 on a pro-investment platform, has cut utility subsidies, forcing Argentines to pay higher monthly bills. His fiscal belt-tightening program has not gone down well with members of the Peronist opposition, particularly those allied with Fernández.

In a 37-30 vote, the Senate gave final legislative approval to the price freeze bill. Peña called the law “irresponsible.”

But opposition lawmakers argued it was a lifeline for Argentines on fixed incomes.

“The utility hikes, together with increasing inflation, have had the most impact on our salaried workers, to say nothing of retirees and pensioners, whose incomes do not increase alongside rising tariffs,” said Senator Inés Blas said during the debate that preceded the vote.

The country’s 2019 fiscal deficit target of 2.2% of gross domestic product will be cut as part of a renewed belt-tightening effort by the government as it negotiates a standby loan deal with the International Monetary Fund. The IMF agreement may be conditional upon tighter fiscal policies.

This month, the government cut Argentina’s 2018 deficit goal to 2.7 percent of gross domestic product from 3.2%

The peso lost 17.6% of its value in May.

Weak Argentine fundamentals, including a 25% inflation rate, combined with a worldwide selloff in emerging markets to punish the local currency. More foreign exchange turbulence may lie ahead as opposition resistance stiffens in the months before Macri’s expected re-election campaign next year.