ARGENTINA: Posse Out & more – 30th May 2024

Buenos días from Greenway Parks! This is the Rorshok Argentina Update from the 30th of May twenty twenty-four. A quick summary of what's going down in Argentina.

This week kicked off with a shake-up in President Javier Milei’s administration. He reshuffled the deck by replacing Cabinet Chief Nicolás Posse with Interior Minister Guillermo Francos. The president had previously warned that his Cabinet’s performance would be judged based on the progress of legislation in Congress. After days of media speculation, Posse finally resigned on Monday, the 27th.

The president aims to give Francos more control and better alignment with government goals. Francos has been more instrumental than Posse in pushing the reform bill, even holding a press conference and committing to work with Senate leaders.

Despite Milei’s short time in office, over twenty officials have already departed.

Another significant event this week was a federal court order mandating the government to distribute five tons of withheld food aid. Recall that President Milei decided early on to eliminate intermediaries in welfare distribution, leading to the suspension of aid to thousands of soup kitchens.

In response to a lawsuit from social organizations, Federal Judge Sebastián Casanello instructed the Human Capital Ministry to provide a detailed inventory of the food within seventy-two hours and ensure its immediate distribution. The government plans to appeal the ruling, arguing that the food is reserved for emergencies, while critics accuse the administration of neglecting the needy during a time of food insecurity.

The lack of food at soup kitchens becomes even more critical when considering the weather forecast. After the coldest day of the year on Saturday the 25th, with temperatures dropping to two degrees Celsius or thirty-five Fahrenheit in Buenos Aires and its suburbs, a weather alert for extreme cold has been issued across fourteen provinces. These low temperatures pose mild to moderate health risks, especially for vulnerable groups such as those with chronic illnesses, children, and the elderly.

Like the temperature, economic activity is also on the decline. According to the INDEC stats bureau, despite some growth in agriculture, livestock, and mining, the overall economy continues to trend downward, with forecasts of a prolonged recession and significant job losses. In March, economic activity saw an eight percent year-on-year decline, driven by sharp drops in construction and manufacturing.

On Saturday the 25th, the president participated in a rally in the Córdoba province to commemorate the May Revolution’s 114th anniversary. During the event, he promised to lower taxes once Congress approves the famous Ley Bases, a comprehensive legislative package that includes wide-ranging economic and fiscal reforms.

For example, Milei pledged to eliminate the PAIS tax, a levy applied to transactions involving foreign currency, particularly US dollars. Currently, the tax rates are seventeen percent on purchases of imported goods and services and thirty percent on buying US dollars for savings.

Speaking of US dollars, Milei is heading to the United States for the fourth time since taking office in December. Together with Economy Minister Luis Caputo, Milei will meet with Meta’s CEO Mark Zuckerberg, as well as representatives from OpenAI, Apple and Google. His goal is to reposition Argentina and draw investment from major tech leaders.

On that note of attracting investment, the country is drawing global mining giants like Lundin Mining Corp, Glencore Plc, and First Quantum Minerals Ltd. The promise of vast copper deposits in the Andes mountain range is driving this surge in interest, as copper is essential for clean energy initiatives.

For instance, the San Juan province has welcomed mining projects, recognizing their potential for job creation, tax revenue, and economic growth. However, success depends on navigating social and environmental challenges. Despite these hurdles, experts agree that the potential economic rewards are substantial, positioning Argentina as a key player in the global copper market by twenty thirty-five.

Unfortunately, San Juan has other pressing concerns this week. The province spent four days searching for nineteen-year-old German tourist Julia Horn, who disappeared while hiking on the Cerro Tres Marías trail. Tragically, searchers discovered her body on Monday the 27th. Authorities await autopsy results but do not suspect foul play, suggesting Julia may have had an accident while trekking alone in challenging weather conditions.

Moving on to more positive news, private health insurance companies might be... giving people their money back? It all started when the government deregulated private health insurance operations in December, leading to fee hikes far above inflation rates. These have soared up to 150 percent so far in twenty twenty-four, a threefold increase compared to the inflation rate for the same period.

This prompted government intervention and legal action. During a hearing at the Federal Civil and Commercial Court, private health insurance companies proposed reimbursing the excess charges to policyholders in twelve installments over a year. However, the Ministry of Industry and Commerce and the Superintendence of Health Services disagree with this repayment method, leaving the hearing ongoing. Hopefully, an agreement will be reached soon.

Another positive news is that the increase in subway fares has been suspended until the 10th of July, following a ruling by the Buenos Aires local court. As discussed on previous updates, subway fares quadrupled, going from 125 pesos (which is ten US cents according to the parallel exchange rate) to 574 pesos (that’s forty-seven US cents). However, following criticism from opposition leaders highlighting the significant impact on commuters, the Court of First Instance in Administrative and Tax Matters stepped in and ordered the suspension of the fare hike until further notice.

Something that’s also been suspended until further notice is the European Union - Mercosur trade pact. Last week, French President Emmanuel Macron made the headlines for his criticism of the agreement and his call for a new one, reflecting concerns about its impact on domestic politics and agriculture.

The protests of French farmers and fears of flooding the EU with cheap meat from South America have stalled the agreement. While German industries view the pact as a lucrative opportunity, environmental and human rights organizations on both continents oppose it. Plus, Macron probably aims to avoid providing right-wing populist parties with additional leverage for their campaign leading up to the EU elections in June.

You know who else made headlines this week? The women’s national football team. Four players announced their resignation in the past few days, citing inadequate investment and a lack of response from the Argentine Football Federation. They expressed their decision via Instagram, highlighting the persistent neglect of women’s football, including meager post-training meals and the absence of transportation provisions from the Federation.

The ones who also raised their voice are the Argentine filmmakers who took the stage at the Cannes Film Festival to denounce President Milei’s budget cuts targeting the cultural sector. Federico Luis’ debut film Simón de la montaña won the Critics’ Week Grand Prix, but despite this success at Cannes, the filmmakers voiced concerns about the impact of austerity measures on the industry back home. Even Cannes organizers have criticized the cuts, highlighting the importance of film as a cultural asset.

Since we’re talking films, an Argentine classic is turning forty, and the Cultural Ministry of Buenos Aires is hosting a special tribute. María Luisa Bemberg’s acclaimed melodrama Camila came out in nineteen eighty-four, and earned an Oscar nomination for Best International Feature Film. Camila tells the story of a socialite’s forbidden romance with a Jesuit priest amidst the turbulent political climate of 19th-century Argentina.

If you want to check it out, catch the screenings at the San Martin Theater Complex, the Lugones Film Theater, and the Kirchner Cultural Center.

Another cultural recommendation has to do with a book that just came out. Professors David S. Koffman and David Sheinin published Promised Lands North and South: Jewish Canada and Jewish Argentina in Conversation, which explores how Jewish immigrants integrated into these societies. Argentina is home to one of the largest Jewish communities in the Americas, and this book dives into how the community became integrated into society by engaging in the workforce, forming political identities, and responding to discrimination.

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

Quick question, listeners! Do you ever go to libraries? If you do, we'd love to talk to you about them. Rorshok's Ourzine project is interested in libraries. Let us know what you think at info@rorshok.com. Read more about Ourzines on our website, you can find the link in the show notes. Thanks!

¡Nos vemos la próxima semana!