ARGENTINA: Former president scandal & more – 15th Aug 2024

¡Buenos días from Louse Point! This is the Rorshok Argentina Update from the 15th of August twenty twenty-four. A quick summary of what's going down in Argentina.

One topic dominated the headlines this week and it has to do with the gender violence complaint that Fabiola Yañez, the former First Lady, filed against former president Alberto Fernández. Things escalated after some photos were leaked showing Fabiola with visible injuries, along with chat messages where Fernández appears to acknowledge the violence. Authorities raided his apartment in Buenos Aires, and seized his cell phone and other electronic devices.

Fernández has denied the accusations, but the evidence has sparked widespread condemnation, with political figures and the public expressing outrage over the situation. He even resigned as chairman of the Peronist Party, citing the need to preserve the party’s integrity.

Both Yañez and Fernández gave interviews in the last few days. During her conversation with Infobae, the news outlet, Yáñez detailed the emotional and psychological abuse she endured. She described a life marked by isolation, constant surveillance, and threats from Fernández, who allegedly controlled her movements and frequently engaged in infidelity. She also revealed that despite the abuse, she received little support from government institutions. Meanwhile, the former president sat down with El País, the Spanish newspaper, insisting that he has never hit Yáñez or any other woman and expressing his intent to let the courts resolve the matter.

Moving on, the AFIP, Argentina’s tax agency, has scrapped the requirement for landlords to register rental contracts for urban and rural properties, aiming to simplify the process for taxpayers. This change comes as part of the repeal of the Rental Law and is intended to reduce bureaucratic hassle. However, those looking to claim certain tax benefits will still need to declare their rental agreements through AFIP’s online system, though there’s no obligation to attach the rental contract when claiming tax deductions.

From taxpayers to tippers, if you’ve ever been caught without cash and couldn’t leave a tip, Mercado Pago has some exciting news for you: it now allows digital tips. The tipping culture in the country has long been dominated by cash transactions, but as fewer people carry cash with them due to inflation, digital tipping is starting to catch on. Mercado Pago, the popular payment app from Mercado Libre, has introduced a feature that lets you add a tip after paying your bill—no matter how you pay. The tip goes directly to the server or restaurant with no extra fees involved.

By the way, if you’re in Buenos Aires, there’s a new incentive to switch to hybrid or electric vehicles. Starting this week, hybrids will get a 50% discount on tolls, and electric vehicles won’t have to pay any tolls at all. To get these discounts, you’ll need to use the TelePASE system and apply in person at specific locations. This initiative is part of the city’s effort to boost more sustainable transportation options.

Ironically, the government is scrapping subsidies for the Boleto Integrado, which offers discounted fares for those using multiple public transport services within two hours. This change could hike travel costs by up to 40%, particularly affecting commuters between Buenos Aires City and the Province. The cut, set to start on the 1st of September, has drawn criticism from local officials who are working to reverse the decision.

INDEC, the National Institute of Statistics and Census, revealed July’s inflation rate, which rose by 4%, bringing year-on-year inflation to more than 260%. So far in twenty twenty-four, prices have climbed almost 90%. The steepest price increases were seen in the Restaurants and Hotels category and Alcoholic Beverages and Tobacco. Over the past year, items like Miscellaneous Goods and Services and Communications have exceeded the average inflation rate, highlighting the widespread impact of rising costs across sectors.

According to the same report by INDEC, a typical family of four in Argentina needs to earn at least 900,000 pesos (some 700 dollars) a month to avoid falling below the poverty line. The basic basket covers more than just food, including essentials like clothing, healthcare, and education, which together define the poverty line. For a family to stay above the indigence line, which covers just basic food needs, they need $400,000 (300 dollars).

In other news, the Olympics wrapped up and Team Argentina returned home with three medals under its belt. On top of the gold in BMX Freestyle, Eugenia Bosco and Mateo Majdalani won silver in mixed multihull sailing. Las Leonas, the women’s field hockey team, secured the third medal by winning bronze after a tense 3-1 penalty shoot-out victory against Belgium. This marked their sixth Olympic medal in the last seven games.

On that note about gold, authorities in the San Isidro neighborhood in the Buenos Aires province foiled a sophisticated bank robbery attempt reminiscent of Argentina’s infamous Heist of the Century. They discovered a 220-meter tunnel leading toward a Banco Macro branch, complete with wooden reinforcements, ventilation, and electric lighting.

The plot was uncovered after a delivery driver noticed a strange noise under his van, which led police to the tunnel’s entrance in a nearby shed. Investigators believe the heist, which took six to nine months to prepare, was close to execution, but the criminals remain unidentified.

Since we’re on the topic of police and security, a new bill proposed by Luis Petri, the defense minister, is setting off alarm bells among human rights groups and military personnel. The bill seeks to allow the military to handle domestic security tasks, like patrolling and making arrests, during terrorism investigations without declaring a state of siege. Critics worry that the bill’s broad definition of terrorism could lead to abuses and that involving the military in domestic security might undermine the crucial boundaries established since the dictatorship era to safeguard democratic principles. Currently, the military’s role is restricted to external threats, and this proposed shift could potentially revive unsettling practices from Argentina’s past.

Meanwhile, the government lifted key operational restrictions at Buenos Aires’ Aeroparque Jorge Newbery airport. The changes include removing a 200-passenger limit on narrow-body aircraft and allowing flights to make additional stopovers in other countries, which is expected to increase international traffic and passenger numbers.

This move follows several recent open skies agreements with neighboring countries and is intended to enhance the airport’s capacity, promote domestic tourism, and support regional economies.

As we’re talking about traveling, President Milei has been touring Patagonia and Chile, focusing on energy investments. In the Vaca Muerta shale patch, Milei highlighted a major new project with YPF and Petronas to build a Liquefied Natural Gas plant, calling it the largest investment in Argentina’s history and a significant boost for the country’s export market. While in Chile, he spoke at a conference, emphasizing his commitment to ensuring a stable gas supply, promising a renewed focus on free market principles and international trust in Argentina’s energy sector.

Leaving Chile and heading over to Mendoza, the city has recently been honored with the inaugural Green Cities Initiative Awards by the Food and Agriculture Organization. This recognition, which the FAO also gave Newcastle in the UK, celebrates these cities’ exceptional contributions to creating greener, more sustainable urban environments. Mendoza received the Innovation Award for its pioneering approach through UNICIPIO, a council that tackles metropolitan environmental and social issues and fosters urban forestry projects.

To wrap up, another topic that dominated the headlines: Atlético Madrid has signed Argentine striker Julián Álvarez from Manchester City in a deal worth up to 85 million euros, making him the second-most expensive Argentine player ever — second only to Enzo Fernandez. After a successful couple of years at City, where he won multiple trophies including the Premier League and Champions League, Álvarez is set to join Diego Simeone’s squad at Atlético on a six-year contract.




Aaand that’s it for this week! Thank you for joining us!

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