ARGENTINA: Liam Payne Dies in Buenos Aires & more – 17th Oct 2024

¡Buenos días from Louse Point! This is the Rorshok Argentina Update from the 17th of October twenty twenty-four. A quick summary of what's going down in Argentina.

We have to start with the tragic news that shook the internet this week. The former One Direction singer Liam Payne passed away on Wednesday the 16th after falling from the third floor of a hotel in the Palermo neighborhood in Buenos Aires. He was found in the hotel’s internal courtyard, and emergency services confirmed his death at the scene. Payne had recently canceled his South American tour, including a show in Argentina, due to health issues related to a kidney infection. The circumstances surrounding his fall are still under investigation.

In other news, tensions kept escalating over university funding this week. In a recent speech, the president labeled free public education as a myth, and accused university officials of corruption. More specifically, he said that public universities mostly benefit wealthier students, framing the system as a barrier to social mobility. Students and experts argue otherwise, highlighting that almost 70% of students are the first in their families to attend university.

During his speech, Milei also implied that public universities avoid audits because they have something to hide. On Tuesday the 15th, the government authorized new audits of public universities, which The General Syndicate of the Nation will oversee. The government insists the audits are necessary to ensure transparency in university spending, but critics see it as an overreach that could undermine university autonomy.

Both this and the veto of the University Funding Law have sparked protests, with several universities occupied by students as a form of resistance. This week, students and professors at the University of Buenos Aires held public classes, setting up outdoor lessons on Avenida Córdoba that disrupted traffic at various times throughout the day.

Demonstrations are happening at multiple universities nationwide, with more protests planned, including a symbolic hug of the Economics building.

What’s more, over thirty professors and researchers at the University of Buenos Aires’ Agronomy Faculty have resigned due to stagnant wages.

Speaking of ongoing tensions, President Milei confirmed his attendance at the upcoming G20 summit in Rio de Janeiro, where he’s set to meet Brazilian President Luiz Inácio Lula da Silva for the first time. Tensions between the two leaders have been high: Milei has called Lula a communist and corrupt.

What’s unhelpful in terms of easing tensions is that Argentina was the only G20 nation to refuse to sign a gender equality statement, proposed by Brazil, aimed at addressing issues like gender-based violence and inequality. Brazil criticized Argentina’s stance, labeling it part of a broader far-right trend. But the refusal is consistent with the current administration’s previous actions, such as eliminating Argentina’s Ministry of Women, Genders, and Diversity.

Despite Milei and Lula’s rocky relationship, the summit provides a chance for diplomatic interactions with global leaders. The event may also see progress on Mercosur’s free trade deal with the European Union, which Lula hopes to finalize.

On the topic of global leaders, Milei welcomed the former UK Prime Minister Boris Johnson at Casa Rosada. The two reportedly hit it off, with Milei sharing stories of his youth when he performed in a Rolling Stones cover band, and Johnson offering to arrange a meeting between Milei and Mick Jagger.

The motive behind Johson’s trip is to promote his new memoir, and he gifted Milei a copy of his book. Even though they didn’t discuss the Falklands/Malvinas issue, Milei’s potential visit to England for the Jagger meeting could stir controversy among veterans.

Another high-profile meeting was that of Vice President Victoria Villarruel and Pope Francis. They met for the first time at the Vatican, just weeks after the pope criticized Milei for a harsh police response to pensioners protesting against poverty.

Despite that, the meeting was warm. They discussed Argentina’s social situation --- a topic that has caused tension between the Vatican and Milei’s government. Villarruel thanked him for his advice and support for Argentina.

The Inter-American Development Bank announced over $3.8 billion dollars in aid for Argentina this year. Ilan Goldfajn, the bank’s president, praised Milei’s efforts to turn a budget deficit into a surplus, highlighting significant fiscal adjustments and spending cuts. He urged continued improvements in spending efficiency to better support vulnerable populations and emphasized that creating jobs and fostering inclusive growth should be the ultimate goal.

Also, JP Morgan released a report predicting that if the economic stabilization plan works, inflation could drop to around 2% monthly in twenty twenty-five. They expect inflation to average 3.7% in the last quarter of twenty twenty-four.

On a similar note, the International Monetary Fund has decided to reduce surcharges on loans, a move that will save Argentina about 450 million dollars annually. Surcharges are additional fees imposed on countries that exceed their borrowing limits or take longer to repay, which critics say unfairly burden nations already struggling financially.

Lastly on economics, the future of Casa de la Moneda, Argentina’s mint, became uncertain after a brief government announcement hinted at its closure, though they quickly retracted without clarification. This came amid growing rumors that the mint could be shut down, particularly after it was excluded from a bidding process for printing 20,000 peso bills, which a Chinese state-owned company won.

Let’s move into upcoming bills or new laws in the works. Milei’s administration has introduced the Ley Hojarasca to Congress, a bill that aims to eliminate around seventy outdated laws. Spearheaded by Federico Sturzenegger, the Deregulation Minister, the bill is part of a broader effort to reduce bureaucracy. Some of the targeted laws include regulations that impose excessive government control, such as restricting public meetings and mandating specific radio broadcasts. Sturzenegger argues that removing these laws will enhance personal freedoms and reduce unnecessary costs for taxpayers.

The government has also introduced a bill to simplify divorce by mutual agreement, aiming to avoid the lengthy and costly judicial process that divorces currently require. The proposal would allow couples to end their marriage through an administrative process, rather than going through the courts, cutting down on legal fees and court costs.

Speaking of agreements, YPF, Argentina’s state-owned energy company, is finalizing a significant twenty-year agreement with Shell to supply gas from the Vaca Muerta field. This deal involves Shell purchasing about a third of the gas produced there, potentially generating around 140 billion dollars in profits over two decades.

Also related to investments, Elon Musk’s company, X (formerly Twitter), is on the lookout for software engineers in Argentina, particularly in Buenos Aires, to join its Monetization team. The roles come with high salaries ranging from 50,000 to almost 100,000 US dollars a year, depending on experience. As X expands its global operations, this hiring spree highlights its strategy to tap into local talent while offering competitive pay well above Argentina’s tech sector average.

In some cultural updates, Paul McCartney’s third show in Argentina is coming up. He already amazed a crowd of 70,000 at River Plate Stadium with a nearly three-hour concert last Saturday the 5th, followed by another show on Sunday the 6th. The legendary Beatle will return to Argentina for another performance in Córdoba on the 23rd of October after stops in Chile and Brazil.

If you’re looking for a different kind of weekend activity, the iconic Torre Monumental, formerly known as the Torre de los Ingleses, has reopened to the public in Buenos Aires City after undergoing significant renovations. This historic clock tower, located in Retiro near Plaza San Martín, has been a landmark since nineteen sixteen, offering panoramic views of the city. Recent upgrades include repairs to the clock and lift, as well as electrical improvements. Visitors can now enjoy sweeping views of key Buenos Aires sites like the Kavanagh building, the River Plate, and the Retiro station. Tickets cost 750 pesos for locals (some sixty cents in US dollars) and 4,500 for tourists (about three and a half dollars at the parallel exchange rate), with free entry on Wednesdays.

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

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¡Nos vemos la próxima semana!