ARGENTINA: President vs VP & more – 21st Mar 2024

¡Buenos días from Greenway Parks! This is the Rorshok Argentina Update from the 21st of March twenty twenty-four. A quick summary of what's going down in Argentina.

There’s trouble in paradise, and by paradise we mean the executive branch. Last week, Victoria Villarruel, the VP and senate president, convened a special session to discuss President Milei’s extensive economic deregulation decree, which he introduced back in December after taking office.

The problem is, the decree requires parliamentary approval, but according to the president’s office, Villarruel’s decision to treat it in Congress was rushed. Without enough time to convince Senators, they risked the possibility of it being rejected, which prompted Milei’s rebuke.

He may have had a point. After all, the Senate did indeed reject his decree on Thursday the 14th. Despite efforts to salvage it, Congress voted down with forty-two opposing votes, twenty-five in favor, and four abstentions. Milei took to social media to condemn the vote, accusing legislators of betrayal.

Proponents of the decree emphasized its continued validity and potential future in the Chamber of Deputies, while critics, like Senator Martín Lousteau, cited its unconstitutionality.

On one hand, there’s the decree. On the other, the omnibus bill. Last week, the government presented a revised version of the omnibus bill to provincial leaders, significantly reducing its length to 270 articles from the original 660 after its initial failure in the Chamber of Deputies.

The new draft, which the government distributed after a meeting with governors at Casa Rosada, includes provisions for declaring a one-year public emergency granting President Milei special powers, alongside plans for privatizing certain state-owned enterprises. Additionally, it includes changes in the Employment Contract Law, potentially escalating tensions with labor unions, while other fiscal measures are also outlined in a separate bill sent to governors.

One idea that the government has dismissed is making the Dengue vaccine free, a disease that has significantly increased due to the mosquito population that transmits it. But despite the surge in Dengue fever deaths this year, Manuel Adorni, the presidential spokesperson, stated during a press conference that there are no plans to include the vaccine in the national vaccination schedule. Adorni argued that achieving immunity through vaccination now, when the mosquito population is diminishing, wouldn’t be effective, although this decision may be reconsidered in the future.

The country has witnessed a significant increase in Dengue-virus-related deaths, with infections soaring and over 100,000 cases reported in twenty twenty-four alone. While a private vaccine is available, public health experts emphasize the safety and effectiveness of free vaccines.

Part of the reason why there’s been a surge in Dengue has to do with the heavy rains in the metropolitan area of Buenos Aires and nine other provinces. The National Meteorological Service issued an orange alert for the entirety of last week and the start of this week, with many areas experiencing thunderstorms and hail. The downpour caused delays in flight departures, chaos with fallen trees, flooded streets, and severe traffic congestion. In the Lanús neighborhood, one person died as a result of the flooding.

Speaking of delayed flights, the Argentine Airline Pilots’ Association had declared a forty-eight-hour strike starting from midnight on the 28th of March. This was supposed to coincide with the Holy Week public holiday, when many will be traveling. Fortunately, they have reached a partial salary agreement, leading them to call off the strike.

The agreement includes a commitment to resume salary negotiations in April, with hopes for further consensus between labor unions, the airlines, and government officials to continue improving workers’ incomes. This resolution, after days of uncertainty, brings relief to thousands of travelers who had already purchased tickets for the extended Easter weekend.

But before Easter weekend, we have an important date coming up. The 24th of March marks the Day of Remembrance for Truth and Justice, which commemorates the victims of the military dictatorship that ruled the country from nineteen seventy-six to nineteen eighty-three.

The Milei administration has chosen not to arrange official commemorations for the date, a decision that aligns with their perspective. The libertarian government regards the occasion as contentious, casting doubt on the official narrative and challenging the reported figure of 30,000 disappeared detainees.

A date that they do find worth commemorating is the 17th of March, the anniversary of the Israeli Embassy bombing in Buenos Aires. The attack claimed twenty-nine lives and injured over 200 in nineteen ninety-two, and no one has been convicted or declared guilty.

This year, both Milei and Villarruel were seen together at the ceremony, becoming the first president and vice president in over two decades to attend the yearly remembrance of the attack.

Moving on, on Tuesday the 12th the government announced the lifting of import restrictions on essential foods and household products as part of its strategy to combat inflation. The Commerce Secretary released the list of items, which includes bananas, potatoes, pork, insecticides, shampoo, diapers, and medication.

The decision followed a meeting between Luis Caputo, the Economy Minister, and supermarket owners, acknowledging that current prices exceed expected inflation rates. Importers will now access US dollars from the Central Bank in one payment, thirty days after purchase. Additionally, charges for VAT and income tax payments on these imports will be deferred for 120 days.

On that note about accessing foreign currency, the president is actively seeking to secure fifteen billion US dollars to accelerate Argentina’s removal of strict currency controls. He outlined potential sources for the funds, including the International Monetary Fund, other multilateral organizations, private investors and even cooperation from certain countries. Emphasizing the urgency of the situation, he indicated that if provided with the necessary capital, the currency controls could be lifted immediately.

Moving to the northwest, the Catamarca province clarified that a recent court ruling freezing the issuance of lithium permits only impacts new projects. Companies like Arcadium Lithium Plc and Posco Holdings Inc can continue their existing lithium production and development initiatives.

Environmental concerns raised by local communities prompted the initial ruling, as it requires the provincial government to suspend new license approvals while conducting an environmental impact assessment. That said, existing operations and ongoing projects remain unaffected.

In other news, public university chancellors are warning that their funds will only last until May. Despite discussions hinting at a potential increase in operating expenses, government officials remain firm on budgetary constraints, meaning the universities are already restricting student intake and deferring maintenance.

As expected, the situation has led to escalating tensions, with unions calling for strikes.

Also on the topic of strikes, clashes erupted between law enforcement and demonstrators decrying budget cuts to the country’s cinema sector. It all came to a head on Friday the 15th when the police used tear gas near the iconic Gaumont Cinema to break up the demonstration. Amidst arrests and injuries, protesters voiced concerns over the potential demise of esteemed film schools and festivals.

Something that went viral this week, which is somewhat related to the film industry, is that the Hollywood superstar Margot Robbie is currently enjoying a vacation in Patagonia. Together with her husband and a group of friends, she’s staying in Rada Tilly in the Chubut province. More specifically, in a cabin owned by the Argentine chef Francis Mallmann. The group is in for a top-notch culinary experience, complete with cooking sessions led by Mallmann himself.

To close this episode, we have a new release worth checking out. HBO produced a documentary series that delves into the mysterious death of Carlitos Menem Jr., son of the former Argentine President Carlos Menem. This series blends elements of true crime and political intrigue, investigating the helicopter crash that took Carlitos’s life back in nineteen ninety-five. Initially labeled an accident, the incident is clouded in suspicion, with whispers of it being Argentina’s third major terrorist strike. Despite compelling evidence, the case was closed, leaving many questions unanswered.

The series unravels the intricate web of conspiracy theories, international terrorism, and political maneuvering surrounding this tragic event, shedding light on a somber chapter in Argentina’s past. You can catch it now on Max, the revamped HBO Max.

And that’s it for this week!

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¡Nos vemos la próxima semana!