ARGENTINA: May Pact & more – 11th July 2024

¡Buenos días from Louse Point! This is the Rorshok Argentina Update from the 11th of July twenty twenty-four. A quick summary of what's going down in Argentina.

President Milei signed the May Pact, an agreement that addresses ten points he believes are key national issues. The initial plan was to sign it on the 25th of May in Córdoba, hence the name, but it was delayed due to negotiations between provincial governors. In the end, eighteen governors signed the pact during a midnight ceremony at the House of Tucumán, where Argentina’s Declaration of Independence was signed in eighteen sixteen.

Milei likened the pact to the nation’s founding moments, and thanked participants for setting aside differences in favor of national progress. Some of the key principles of the pact include protecting private property, cutting public spending by twenty-five percent of the GDP, and exploiting natural resources.

In other news, the polar wave continues to hit Buenos Aires and its surroundings, bringing temperatures below two degrees Celsius (or twenty-eight Fahrenheit). However, the biting cold didn’t stop the parade marking Argentina’s 208th Independence Day.

On Tuesday, the 9th of July, thousands gathered along Avenida Libertador to watch over 7,000 troops in the first event of its kind in five years. The day began with an Air Force display and concluded with a celebrated performance by the Regiment of Mounted Grenadiers. The most touching moment was the procession of Malvinas War veterans who carried a banner reading Malvinas. Volveremos, which means Malvinas, we’ll be back.

However, Ernesto Alonso, one of the veterans who chose not to participate, harshly criticized the event because veterans were expected to parade before a President who admired Margaret Thatcher, the British prime minister during the nineteen eighty-two Malvinas War. Second, the veterans condemned the inclusion of individuals associated with human rights abuses during Argentina’s nineteen seventy-six–nineteen eighty-three military dictatorship in the parade. Third, they criticized the significant expense of hosting such an event amid economic hardships.

Next up, the government established The Ministry of Deregulation and State Transformation. President Milei appointed Federico Sturzenegger, the former Central Bank President, to lead it. Sturzenegger is a key advisor to Milei, and he played pivotal roles in drafting recent economic legislation, including the Bases Law and subsequent emergency decrees.

This new ministry aims to streamline public administration, cut spending, and enhance efficiency across government agencies. Sturzenegger also wants to boost competition in Argentina’s aviation sector through an open skies policy, expand passenger air travel to medium-sized cities previously underserved, and introduce tuition fees for non-resident foreigners at public universities.

Moving on to a different ministry, the Economy Ministry presented a preliminary budget report outlining some ambitious economic projections for twenty twenty-four. Mainly, the anticipated official exchange rate is expected at 1,060 pesos per U.S. dollar by year-end, which is 170 pesos more than now, and a forecasted inflation rate of 140 percent. The government aims to stabilize the currency with a two percent monthly crawling peg and has ruled out further devaluations despite challenges in accumulating international reserves.

The report also predicts a significant GDP contraction of 3.5% and emphasizes efforts to boost exports while curbing imports to achieve a projected trade surplus of almost twenty-two billion dollars, a marked improvement over previous deficits.

On that note, inflation in the City of Buenos Aires rose slightly to almost 5% in June, up from a bit over 4% in May. The cost of living has accumulated an eighty-nine percent increase in the first half of the year.

In better news, the national men’s football team has made it to the Copa América finals. On Thursday the 4th, in the quarter-finals stage, goalkeeper Emiliano 'Dibu' Martínez saved two penalties in the shootout after a dramatic 1-1 draw with Ecuador, echoing his past performances in key matches. On Tuesday the 9th, Argentina defeated Canada 2-0 in the semi-finals.

This Sunday, Argentina will aim for a record 16th Copa América title in an unmissable match against Colombia in Miami.

Somewhat related to sports, the provincial government of Buenos Aires unveiled a comprehensive plan to combat underage betting through coordinated efforts across multiple ministries and institutions. The plan includes measures like using biometric data to enhance identity verification on gambling platforms, IP address blocking of identified legal and illegal online gambling sites in all high schools, and integrating online gambling addiction into existing compulsive gambling prevention programs. Additionally, the province plans to bolster detection and reporting mechanisms for illegal gambling sites, establish a teenage gambling observatory, and launch awareness campaigns in collaboration with the Ministry of Communication, Education, and Banco Provincia.

Argentina is set to emerge as a global Liquefied Natural Gas or LNG exporter by twenty twenty-seven through a landmark agreement between Golar LNG and Pan American Energy to deploy a Floating LNG vessel in the Vaca Muerta shale gas region. This project aims to leverage the country’s abundant natural gas resources, tapping into the vast reserves of the Neuquén Basin, which is the world's second-largest shale gas deposit. The initiative may expand to a multi-vessel operation and explore routes to export gas to Brazil via Bolivia.

Since we mentioned Brazil, Luiz Inacio Lula da Silva, the Brazilian president, criticized Milei’s decision to skip the Mercosur summit in Paraguay, saying it was “utter nonsense.” His absence also drew disapproval from Luis Lacalle Pou, the Uruguayan President, who emphasized the importance of all Mercosur leaders participating in such meetings. Instead of Milei, Foreign Minister Diana Mondino represented Argentina at the summit, briefly meeting with Lula beforehand amid calls for diplomatic reconciliation between the two leaders.

At the twenty twenty-four Gabo Awards, the most prestigious prizes in Spanish-speaking journalism, a story on animal cruelty, organized crime, and state complicity in Argentina won in two of the five categories. The feature, titled Night of the Horses: The Greatest Equine Rescue in South America, was published in the Colombian magazine Gatopardo, and it details the rescue of over 700 horses near death in Buenos Aires province and the subsequent revelation of an illegal horse meat export operation with state involvement. Author Diego Fernández Romeral earned Best Text, and photographer Ana Pouchard Serra won Best Pictures prize.

Also on journalism, after more than four months on paid leave, journalists from Télam, the former government-ran news agency, will start working at a new public news agency. This move follows President Milei’s announcement to close Télam in March, which initially involved privatization plans. Despite the changes, no journalists were laid off, though 400 employees took voluntary redundancy and many camped outside the agency to protest.

The government has yet to reveal the details of this new service.

Back to the topic of air travel, the Chilean budget airline SKY has shown interest in expanding its operations to include domestic flights within Argentina. This initiative could mark a potential revival of Argentina’s low-cost airline sector, which dwindled after twenty nineteen.

Speaking of travel, the World Travel Awards named The Gran Meliá Hotel in Iguazú as Argentina’s top hotel for twenty twenty-four. Overlooking the Iguazú Falls, the hotel is a luxurious five-star resort that has clinched the honor for three years straight.

In England, Franco Colapinto became the first Argentine driver since two thousand one to participate in a Formula 1 Grand Prix weekend. He took part in Free Practice 1 at the twenty twenty-four British Grand Prix, where he ended 18th on the timesheet. Expressing his excitement and gratitude, Colapinto emphasized his commitment to continue working towards a full-time F1 role. He is set to compete in the F2 British Grand Prix, where he qualified fourth.

To wrap it up, Decanter, a renowned wine magazine and website, published a piece titled Buenos Aires wine shops: 10 to visit. The article by Sorrel Moseley-Williams explores the vibrant wine scene in Buenos Aires, highlighting ten standout wine shops, or vinotecas, and emphasizing their appeal to both local and international visitors.

Read the full piece in English with the link in the show notes!

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

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