ARGENTINA: Power Outages in Buenos Aires & more – 6th Mar 2025

¡Buenos días from Greenway Parks! This is the Rorshok Argentina Update from the 6th of March twenty twenty-five. A quick summary of what's going down in Argentina.

A massive power outage hit Buenos Aires and parts of the surrounding metro area on Wednesday the 5th, hitting over 700,000 homes on an extremely hot day with temperatures soaring past forty-four degrees Celsius, or 111 degrees Fahrenheit. Chaos spread across the city—traffic lights went out, trapping cars in gridlock, subways and trains stopped running, and firefighters had to rescue over fifty people stuck in elevators.

The government blamed the energy company Edesur for poor maintenance, while Edesur blamed the blackout on a failure in two high-voltage lines. Frustrated residents flooded social media with complaints. Authorities promised new investments, but the long-term fixes offer little comfort to those stuck in the heat now.

More blackouts could hit Buenos Aires and the surrounding metro area in the coming days as extreme heat keeps pushing the energy grid to its limits.

Speaking of heat, things got fiery in Congress. On Saturday, the 1st of March, President Milei opened the legislative year by reaffirming his commitment to economic deregulation, fiscal balance and sweeping reforms in taxation, labor laws, criminal justice and immigration. He gave a speech to a half-empty Congress—boycotted by the opposition—in which he emphasized reducing public spending, privatizing state-owned companies and pushing for greater economic openness.

It wasn’t all peaceful, as you can imagine. Tensions flared when Deputy Facundo Manes accused Milei of violating the Constitution by appointing two Supreme Court judges via decree, prompting a heated exchange with Santiago Caputo, the president’s top advisor.

Video footage showed Caputo acting aggressively toward Manes, who alleged that he later confronted and threatened him in the halls, with a companion reportedly striking him twice in the chest.

During his speech, Milei also suggested that Argentina might exit the Mercosur trade bloc to pursue a trade deal with the US. On Monday, the 3rd of March, US president Donald Trump held a press conference in which he praised Milei as a great leader and said he would consider exploring a free trade agreement with Argentina. His statement came shortly after a US special envoy dismissed the idea and criticized Milei’s advisors.

While Trump’s remarks signal potential support, Mercosur rules require joint trade negotiations, which is why the government might leave it.

On that note about Milei’s relationship with Trump, The New York Times published an opinion piece titled Trump Is Borrowing Argentina’s Chain Saw. America Will Suffer, which compares Trump’s moves to Milei’s economic reforms. The article argues that while Milei’s drastic budget cuts aim to stabilize a struggling economy, Trump’s approach prioritizes political theatrics over sound governance.

Specifically, it highlights Milei’s success in reducing inflation and achieving a fiscal surplus, despite rising unemployment and poverty, while criticizing Trump for mass firings, undermining government oversight, and empowering ideological loyalists rather than technocrats.

To read the article, follow the link in the show notes.

That’s not all when it comes to The New York Times. A recent investigation says that cryptocurrency entrepreneurs bribed their way into meetings with Milei during the Argentina Tech Forum last October. Consultant Mauricio Novelli reportedly acted as a middleman, charging between 50,000 dollars for a brief encounter and up to 500,000 dollars for alleged consulting services that promised access to Milei. Novelli is also tangled up in the LIBRA case—which we covered in previous episodes—where Milei promoted the token before its value crashed, leaving investors with huge losses while developers allegedly pulled out $100 million in what some call a classic pump-and-dump scheme.

An audio recording also surfaced of crypto developer Hayden Davis saying he had influence over Milei’s public appearances and social media presence in exchange for millions in cryptocurrency. So far, there is no proof that Milei knew about these deals.

Following up on the $LIBRA cryptocurrency controversy, this is where the investigation is standing: President Milei remains defiant, denying any wrongdoing while pushing forward with his political agenda. Investigative reports suggest that insiders linked to Kelsier Ventures and CEO Hayden Davis moved large sums of money through crypto transactions, possibly to cover their tracks.

While Milei’s inner circle, including his sister Karina, is under scrutiny, Argentina’s judiciary has been slow to act. The administration is working to contain the fallout, avoiding a Senate investigation and attempting to consolidate power by appointing Supreme Court justices via decree.

To know more about the relationship between the appointments and the cryptocurrency controversy, check out an article published by The Wall Street Journal with the link in the show notes!

In other news, the government is pushing for a new immigration law that would require non-resident foreigners to pay for healthcare and education while making it easier to deport those who commit crimes.

Some provinces have already started charging non-residents for medical services, saying it saves millions. The bill also aims to tighten border security and impose stricter requirements for obtaining residency. If Congress blocks the reform, the government might push it through by decree.

There’s good news in transportation. Buenos Aires City is set to expand its subway system with the long-awaited F line, connecting the Barracas and Palermo neighborhoods. Mayor Jorge Macri announced that the city will open bids this year, with construction starting in twenty twenty-six and operations expected by twenty thirty-one.

The line will span nine kilometers, adding eleven stations and linking all existing subway lines, helping to ease congestion, especially for commuters from southern Greater Buenos Aires. The city estimates the total cost at 1.8 billion dollars, making this one of Argentina’s most ambitious urban infrastructure projects.

Also on the topic of expenses, March is kicking off with a wave of price hikes, hitting essentials like rent, public transport, healthcare, and utilities. Rent contracts in pesos signed a year ago will see a 150% increase, while Buenos Aires bus and subway fares are jumping 10%. Subway rides will cost over 800 pesos (about seventy US cents). Electricity and gas rates are also set to rise, though the exact numbers aren’t out yet. On the healthcare front, individual plans will go up 2% on average.

All of this adds pressure to household budgets as inflation stays above 2% per month.

As the summer season comes to an end, the numbers are in: travel dropped almost 4% compared to last year. More Argentines chose to travel abroad, with destinations like Chile, Brazil, and Uruguay becoming more affordable thanks to a stronger peso. Trips were shorter—3.2 days on average versus 3.9 last year.

Back to the topic of infrastructure projects, Buenos Aires’ iconic Luna Park arena is set for a major renovation, but not everyone is on board. The events company DF Entertainment pushed through a thirty-four million dollar plan to expand the venue’s capacity from 8,500 to 13,000, adding new floors above and below ground.

Critics believe the remodel will damage the venue’s historic character, even though it isn’t labeled as a demolition. Luna Park has hosted Carlos Gardel’s funeral, Maradona’s wedding, and concerts by Frank Sinatra, making it a cultural landmark.

Since the Catholic Church owns the property, Pope Francis also needs to sign off on the final decision.

Unfortunately, Pope Francis is not doing great health-wise. The Argentine pontiff remains hospitalized in Rome as he recovers from pneumonia, which initially started as bronchitis. The Vatican reported that after suffering two severe respiratory attacks on Monday the 3rd, he is now breathing without a mask but continues treatment with high-flow oxygen.

Before we go, the Carnival weekend may be behind us but there’s another public holiday on the horizon. Monday the 24th of March marks the National Day of Memory for Truth and Justice, which commemorates the victims of the last military dictatorship, which began on the 24th of March, nineteen seventy-six. The day serves as a reminder of the importance of democracy, human rights, and the pursuit of justice for the crimes committed by the dictatorship.

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

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¡Nos vemos la próxima semana!