ARGENTINA: Reform Bill & more – 13th Jun 2024

¡Buenos días from Greenway Parks! This is the Rorshok Argentina Update from the 13th of June twenty twenty-four. A quick summary of what's going down in Argentina.

Monday the 10th marked six months since the new administration took office, and everyone’s doing their own assessment of the first semester. The conclusions are, to say the least, mixed. Manuel Adorni, the presidential spokesperson, stated at a press conference that the outcomes are excellent and extraordinary, with the only mistake being the expectation of swift action from the political sector. However, political analysts outside the Libertarian space argue that the gains in reducing inflation came at a dangerously high cost: a decline in employment, economic activity, and a recession.

Even the bank J.P. Morgan published its own assessment, which praised the government’s economic direction but cautioned that the country’s medium-term recovery hinges on the sustainability of fiscal adjustments through the fiscal package and the removal of currency controls.

On that note about the fiscal package, on Thursday the 13th things got heated both inside and outside the Congress building as the Senate debated the reform bill. This bill includes drastic economic measures and privatization plans, and has therefore faced backlash from various social unions, who argue it will erode workers' rights and set back progress.

As a result, violent clashes erupted outside with protesters opposed to the reform facing riot police and security forces. Some demonstrators hurled stones and set cars on fire. The police responded with water cannons and tear gas, leading to several injuries and arrests. Even though this didn’t stop the debate, inside Congress, opposition lawmakers condemned the government’s aggressive crackdown on protesters.

Finally, at 11 p.m. on Thursday, the Senate approved the fiscal package. Milei’s market-friendly reforms, aimed at privatizations and labor law changes, mark a significant legislative achievement for his administration. That said, the Senate rejected specific elements, leaving the final decision to the House of Deputies. Mainly, they rejected the income tax and the tax on personal assets reforms, which means these two remain unchanged for now.

This is not the first concession that the government has had to make. The bill initially aimed to privatize numerous state-owned enterprises, but to ensure its passage, they had to remove high-profile entities such as Aerolíneas Argentinas, Correo Argentino and Radio y Televisión Argentina from the privatization list​.

What the reform bill does include is changes in foreign exchange regulations, easing restrictions on foreign currency operations to simplify transactions for individuals and businesses. Earlier this week, Luis Caputo, the Economy Minister, announced that Argentina is planning to negotiate a new program with the International Monetary Fund (or IMF) to remove the country’s currency controls or cepo.

Speaking at a seminar in Buenos Aires, he mentioned that discussions with the IMF would start after their executive board approves Argentina’s latest quarterly review, which should be happening in the next few days.

Between the reform bill and the persisting issues with the Human Capital Ministry, the start of the second semester finds the government at a turbulent time. Fernando Szereszevsky, the chief advisor to the Human Capital Minister, presented his resignation amidst the ministry’s scrutiny over various issues, including a protracted food distribution dispute and embezzlement accusations. However, he clarified that his decision was pre-planned and unrelated to the ministry’s challenges. He cited family commitments and tour responsibilities with the rock band he manages as the reasons for his departure.

Yes, you heard that right. The former chief advisor is also the manager of Los Ratones Paranoicos, an influential rock band formed in the eighties.

The other major headline this week involves Argentine-Brazilian actor Juan Darthés. After a lengthy judicial process, a Brazilian court sentenced him to six years in prison for the two thousand nine statutory rape of Thelma Fardin, his former co-star. She was sixteen at the time, while Darthés was forty-five. According to Fardin’s lawyer, Darthés’ sentence will involve serving under the open regime, allowing him to work during the day while residing in jail at night.

Back in twenty nineteen, when Fardin first accused him, the case sparked a pivotal movement across Latin America, akin to the #MeToo movement, prompting numerous women to step forward with allegations of sexual abuse.

On that note about Brazil, the country’s media reported the presence of around sixty Brazilian fugitives in Argentina. They are all connected to an alleged attempted coup in Brazil in twenty twenty-three, which saw supporters of former President Jair Bolsonaro invade government premises. However, Patricia Bullrich, the Security Minister, denied knowledge of their presence or any asylum requests.

Could this be a topic of conversation between President Milei and President Lula da Silva in Italy this week? Maybe. The Italian Prime Minister Giorgia Meloni invited both heads of state to the G7 summit, which will be dominated by discussions on supporting Ukraine, climate change, and migration. The otter attendees include France’s President Macron, Japan’s PM Kishida, and the US President Biden.

Surprisingly, Milei left Diana Mondino, Argentina’s Foreign Minister, out of his delegation for the summit. Instead, the president will be accompanied by his sister Karina, the Ambassador to the US Gerardo Werthein, and economic advisor Demian Reidel. All eyes are on what this means for Mondino’s role.

In other news, the government has officially shut down what was left of the Ministry of Women, Gender, and Diversity, which had already been downgraded to an undersecretariat when President Milei took office. The Justice Ministry will now handle its tasks through the human rights secretariat, which activists see as a major setback for gender equality and anti-violence efforts.

From gender equality to health and science, the government has decided not to endorse the World Health Organization’s Pandemic Treaty. During the World Health Assembly in Geneva, officials from Argentina’s Health and Foreign Ministries emphasized that any pandemic-related decisions will be made within the country to protect national sovereignty.

Still on health concerns, the country is seeing a surge in respiratory diseases like influenza and pneumonia, with hospitals in Buenos Aires nearly overwhelmed. Experts are urging citizens to get flu shots, noting that this year’s vaccination rate is below forty percent. Gastrointestinal viruses are also on the rise.

Speaking of statistics on the rise, a recent poll by Opina Argentina revealed that sixteen percent of teenagers gamble online, which highlights a growing issue of addiction. There’s a bill aiming to restrict minors’ access to betting sites now in Congress, but it’s still being treated.

The judicial system isn't much faster than the legislative. This week, The New York Times published an article unraveling Buenos Aires Yoga School, or BAYS, now exposed as a sex cult rather than the spiritual haven it said to be. Led by Juan Percowicz, BAYS promised enlightenment but allegedly forced female members into prostitution and laundered profits through real estate. Percowicz and over a dozen others face charges. After legal loopholes stalled initial accusations in the nineties, the case now revives.

Wanna know more? Follow the link in the show notes!

Since we mentioned The New York Times, an installation that used to be displayed at Times Square will be set up at the Centro Cultural Kirchner. We’re talking about Argentine artist Marta Minujín’s anti-sculpture installation, a vibrant, inflatable artwork that invites visitors to whisper their wishes inside it.

This immersive piece is filled with bird songs and will be open from the 6th of July to the 28th, with free entry during winter holidays.

We also have exciting news for music fans. Paul McCartney announced that he’s bringing his Got Back Tour to the country, with three shows in October. The first two will be on the 5th and 6th at River Plate Stadium, followed by a performance at Córdoba’s Mario Kempes Stadium on the 23rd.

Also, Lollapalooza started selling tickets for its twenty twenty-five edition, which marks the festival’s ten-year anniversary in the country. It will run from the 21st to the 23rd of March and three-day passes are priced at 195,000 pesos (about 150 US dollars at the parallel exchange rate) with one-day options coming soon.

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

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¡Nos vemos la próxima semana!