Episode 215
ARGENTINA: Garrahan Children’s Hospital Strike & more – 5th June 2025
ARCA’s changes to reporting on big transactions, the trial over Maradona’s death, the demand for US dollars, YPF’s new pricing system, the best alfajores in the world, and much more!
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Transcript
¡Buenos días from Greenway Parks! This is the Rorshok Argentina Update from the 5th of June twenty twenty-five. A quick summary of what's going down in Argentina.
A lot has been said this week about the Garrahan Children’s Hospital and the residents’ strike. On Tuesday the 3rd, healthcare workers marched with candles to the Obelisk in Buenos Aires City, demanding fair wages, better working conditions, and urgent fixes to a collapsing system. They’re dealing with long shifts, low pay, and a lack of resources, all while treating some of the country’s most vulnerable patients. The current salaries of most residents are under 800,000 pesos monthly (about 660 US dollars) for sixty to seventy-hour workweeks. Nearly 200 staff have already quit, including fifty full-time doctors.
The media and the public have been supporting them for the most part. The government said it’s ready to offer residents a better salary, but only if they pause their strike for forty-eight hours. However, the residents aren’t buying it. After a year of trying to get answers, they say the government's latest meeting brought no real solutions, so they’re keeping the strike going indefinitely.
Meanwhile, Congress started advancing bills to declare a pediatric health emergency and officially recognize Garrahan as a top-tier national hospital. This would limit their right to strike according to the list of essential services that must keep running during labor actions.
That said, a labor court has just blocked parts of President Milei’s controversial decree that introduced new restrictions on the right to strike. The CGT, Argentina’s biggest labor federation, challenged the decree and won a temporary suspension of these rules. Critics argue the decree violated constitutional rights and tried to bypass Congress, which is currently in session.
The judge agreed that the government failed to prove any real emergency to justify skipping the legislative process. Union leaders celebrated the ruling as a major victory for democracy and workers’ rights, promising to keep fighting back.
Speaking of strikes, pilots from the flagship carrier Aerolíneas Argentinas plan a walkout on the 10th of June, with work stoppages running from six pm to two am, likely disrupting flights at both Aeroparque Jorge Newbery and Ezeiza airports. The pilots’ union says the strike centers on salary concerns and contract issues, while the airline argues that the walkout is politically motivated, not about pay.
The airline, which didn’t need government funding this year for the first time since two thousand eight, has faced big changes under President Milei’s administration, including staff cuts and moves toward privatization.
On that note about reforms, even though the government announced changes to ease reporting requirements on big transactions, banks are still sharing client data for transfers over 10,000 US dollars because the Financial Information Unit hasn’t updated the rules yet.This delay means the old system of data sharing remains in place, which directly affects provinces relying on this information to collect taxes.
With federal tax revenues expected to drop between 2% and 6% this year, several provinces are considering joining a new data-sharing agreement proposed by the ARCA tax bureau to secure more stable funding.
While some provincial leaders worry about the government’s plan and political costs, the prospect of extra revenue is pushing them to negotiate. Meanwhile, the Buenos Aires Province is taking a wait-and-see approach until all regulations and laws are clear.
Also in the realm of financial services, Mercado Pago, the digital wallet of the ecommerce giant Mercado Libre, plans to apply for a banking license from Argentina’s Central Bank in hopes of expanding its fully digital financial offerings. The company aims to become Latin America’s biggest digital bank, offering more accessible financial options in a region where many people still lack quality banking.
This effort aligns with Mercado Libre’s strong growth in Argentina and its recent commitment to invest heavily in the country. Plus, it will help it compete with local fintech rivals like Ualá.
Building on the changes in financial regulations and tax reporting, President Milei also shook up Argentina’s currency market when he removed most foreign-exchange controls. As a result, demand for US dollars in Argentina surged to levels not seen since twenty nineteen. In April alone, around one million Argentines bought a total of 1.9 billion dollars—an enormous jump from just $6 million in March. Roughly half of these dollars stayed in the banking system as deposits.
While this increase isn’t unusual for a first month without limits, experts expect demand to rise even more ahead of the midterm elections in October, following historical trends where dollar buying spikes before votes.
Since we are talking about elections, Cristina Fernández de Kirchner, the former president, has announced that she will run for a seat representing the Buenos Aires Province in the September legislative elections, marking her return to frontline politics. She aims to strengthen the Peronist movement in a key electoral region home to millions of voters.
Despite a twenty twenty-two conviction for corruption that currently bans her from office, she denies the charges and hopes winning a seat would grant her immunity.
In other news, YPF is rolling out a new pricing system that changes fuel prices based on the time of day, using AI to lower prices during low-demand hours like overnight. Starting the 23rd of June, this plan will kick off at about 1,600 gas stations across Argentina and aims to boost sales when fewer people are filling up, while making operations more efficient. On top of that, YPF will introduce self-service pumps during those late-night hours, cutting staff costs since attendants won’t be needed then.
The government gave the green light for this voluntary switch earlier this year, saying it could help stations offer better prices and more options to customers.
Following these moves to modernize energy and transport, Paraguay is now urging Argentina and Brazil to back a natural gas pipeline that would link the three nations. With Bolivia’s gas production dropping, Brazil is looking to boost gas imports from Argentina’s Vaca Muerta fields, either by upgrading existing pipelines through Bolivia or building new ones via Paraguay, connecting to their current networks.
In sports, the twenty twenty-five Apertura football tournament wrapped up on Sunday the 1st with a historic finish, as Platense beat Huracán 1–0 to claim their first-ever top-flight title. The Apertura is one of two championships that make up the Argentine league season, and winning it is one of the biggest achievements in local football.
Platense is one of Argentina’s oldest clubs, but they’ve spent most of their history bouncing between divisions. This win not only breaks a century-long title drought, but also books them a spot in the Copa Libertadores for the very first time.
Following up on a story from last week, the trial over football legend Diego Maradona’s death will start from scratch with a new court. The trial hit a major setback last week after a judge on the case took part in an unauthorized documentary about the proceedings. That led the court to declare a mistrial, throwing out more than two months of testimony from over forty witnesses.
The seven medical professionals accused of negligence were being tried for allegedly failing to provide proper care after Maradona’s brain surgery in twenty twenty. Maradona’s family is devastated that they’ll have to start over and raised concerns about possible lost evidence.
To end on a lighter note, Argentina just scored a sweet win on the global food scene: Taste Atlas, the international food guide, released its ranking of the twenty best alfajores in the world, and nineteen of them are Argentine. Topping the list, La Olla de Cobre from San Antonio de Areco in the Buenos Aires Province impressed judges with its commitment to handmade tradition. Only one non-Argentine entry made the cut: a lone alfajor from Uruguay.
Aaand that’s it for this week! Thank you for joining us!
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¡Nos vemos la próxima semana!