Against the Mega-Decree & more – 4th Jan 2024

¡Buenos días from Greenway Parks! This is the Rorshok Argentina Update from the 4th of January twenty twenty-four A quick summary of what's going down in Argentina.

It’s January and that means judicial recess, so the Supreme Court of Justice is taking its time to review a court filing that the La Rioja province’s government made against the president’s mega-decree. For the time being, the decree is in force, but the Supreme Court recognized the legitimacy of the constitutional arguments of the provincial government, meaning they will deal with the case in February.

This is not the only legal challenge against the decree, as magistrates and trade federations have filed other appeals.

On last week’s episode, we mentioned that President Milei had sent his comprehensive “Omnibus Law” bill to Congress, a lengthy document spanning over three hundred pages and six hundred articles proposing various state reforms and economic deregulation. Milei’s party aims to have the bill voted on by the 25th of January during special sessions of Congress. However, Congress is already behind schedule, as legislators have yet to appoint the commissions responsible for evaluating the bill.

The extraordinary sessions will need to be extended in order to examine the bill, which proposes privatizations, electoral reforms, tax changes, and restrictions on protests.

Still, some Congresspeople believe the approval process for the draft law could take months or years due to its broad nature and the need for it to be reviewed by multiple committees. Opposition lawmakers have voiced concerns and plan to coordinate efforts to oppose the bill.

Speaking of bills, Milei also proposed legislation to deregulate Argentina’s oil industry. The goal is to unshackle crude exports and allow market forces to determine local fuel prices, replacing the long-standing rules that prioritize affordable fuel supplies domestically.

If passed, the legislation would have significant implications for companies like YPF, Shell, and Vista Energy operating in the Vaca Muerta shale patch. The legislation would allow sales abroad to be free from government intervention and tie energy prices to international values.

Also in a push for free trade, the government has lifted import restrictions. With the new system, the Central Bank plans to sell dollar bonds to help companies trade and pay down debts owed to international suppliers.

On that note, the Central Bank faced a setback as its first auction to pay down importers’ debts failed to meet expectations. The bonds, known as Bopreal, aim to provide predictability to importers’ debt payments and help absorb excess pesos in the economy to combat high inflation. However, the bank only sold sixty-eight million dollars of the available 750 million offered, which represents a first setback in removing the financial controls inherited from the previous government.

The Central Bank plans to hold two auctions per week until the end of January twenty twenty-four.

Also towards the end of January, the CGT, the General Confederation of Labor, will call for a nationwide protest against the reforms aimed at deregulating the economy. The union, which is the largest umbrella union grouping in the country, scheduled a strike for the 24th of January and asked the courts to declare Milei’s decree unconstitutional.

The strike will serve as a major test for the president and for Security Minister Patricia Bullrich, who pledged to take measures to limit protests.

January has a lot in store. Following the unfreezing of tariffs, the month will see significant price increases in various sectors. For example, transportation fares will increase by up to fifty percent, including bus, train, subway, and taxi fares. Private health insurance companies are expected to raise their fees by around forty percent, and rental contracts signed under the old law will still see annual increases of at least 140 percent. Toll fees on certain highways will rise by fifty percent, and building maintenance fees will increase by approximately twenty percent due to salary raises for building supers.

A more positive thing that’s going down in January is the start of the football season. If you’re into Argentine football, mark your calendars: the Copa de la Liga twenty twenty-four kicks off on the 27th of January.

The twenty-eight teams in the first division will be divided into two groups. Each team will play thirteen matches and an additional match against their derby rival. The Fecha de los Clásicos, a day that features matches between traditional rivals, will take place on the 25th of February.

The top four teams from each group will proceed to the playoffs, with the final set to be played on the 5th of May.

On that note about groups, President Milei has formally rejected Argentina’s invitation to join the BRICS grouping of major emerging economies. In letters sent to BRICS leaders, Milei stated that Argentina’s membership was not appropriate at this time, reflecting his different foreign policy approach compared to the previous government.

During his election campaign, Milei expressed alignment with the United States and Israel and vowed not to ally with communists.

Speaking of the US, American Airlines has decided to stop accepting cash at their three city ticket offices in Argentina. Going forward, they will only accept credit and debit cards, travel vouchers, and electronic funds transfers.

This change comes as a response to the country’s high inflation and the amount of bills necessary to pay for plane tickets. American Airlines flies from Buenos Aires to Dallas, New York, JFK, and Miami.

Since we’re on the topic of travel, the president will be traveling to Antarctica on Friday the 5th alongside Diana Mondino, the Minister of Foreign Affairs, and Luis Petri, the Economy Minister. The purpose of the trip is to launch a pollution control initiative in collaboration with the International Atomic Energy Agency.

This follows the introduction of a bill to Congress that eliminates regulations on productive activities in protected ecosystems, which has sparked controversy due to concerns about environmental issues.

There are also concerns about an epidemiological alert following the death of a man from dengue in the city of Corrientes. The patient had underlying health conditions and had to be rushed to the hospital, but unfortunately, passed away. In addition to the yearly campaigns, the health ministry has emphasized the importance of preventive measures such as eliminating mosquito breeding sites, using repellents, and seeking medical help if symptoms arise.

There are currently ninety active dengue cases in the province of Corrientes, primarily in isolated neighborhoods of the capital.

You may recall that the government bought a Japanese vaccine against dengue a few months ago. it’s been approved for use and it’s available. Reach out to your healthcare provider or a vaccination center or pharmacy nearby to learn more.

So, you know, do everything you can to avoid a tragedy. And speaking of tragedies, Prime Video is working on a series that tells the story of one of the most significant episodes in recent Argentine history. On the 30th of December two thousand and four, a fire broke out in the Cromañón nightclub in Buenos Aires due to the improper use of pyrotechnic flares by the band performing on stage. The venue was overcrowded, lacked proper fire safety measures, and had blocked emergency exits — all of which led to the death of almost two hundred people and injured hundreds.

The incident exposed major flaws in safety regulations, corruption, and negligence in the entertainment industry, prompting public outrage with calls for improved safety standards and justice. The series will premiere in twenty twenty-four and will portray the devastating event and its impact on the lives of young people affected by the tragedy.

Aaand that's it for this week!

Happy New Year from the Rorshok family! These are our wishes for twenty twenty-four: 1) that you tell your friends about us. 2)... Noup, that’s about it.

Remember you can help us financially with the link in the show notes.

¡Nos vemos la próxima semana!