ARGENTINA: Smaller Ómnibus Law & more – 25th Jan 2024

¡Buenos días from Greenway Parks! This is the Rorshok Argentina Update from the 25th of January twenty twenty-four A quick summary of what's going down in Argentina.

After weeks of uncertainty, it’s finally time for Congress to vote on the Omnibus bill. Even though it’s still an ambitious economic and government reform, it’s also a modified version of the original since President Milei had to chop over 100 articles during heated negotiations with opposition forces.

Some of the key changes include dropping the energy company YPF from the privatization A-list and compromising on partial privatization for organizations like Nucleoeléctrica Argentina, Banco Nación and ARSAT, which specializes in satellite communication and technology. In a surprising move, the president also committed to maintaining pension updates until April and vowed to reduce export duties once the economy stabilizes.

The administration bets on winning over moderate opposition sectors. With Milei’s libertarian party holding only fifteen percent of seats in the lower house, the president is banking on support from the PRO party to turn his vision into reality. They scheduled a debate on Thursday the 25th, so brace yourselves for the political showdown.

Another one of those key changes introduced in recent weeks has to do with the film industry. The president had initially made a move to slash public funding for the National Institute of Cinema and Audiovisual Arts or INCAA, but it triggered intense protests. In fact, heavyweight directors like Pedro Almodóvar, Alejandro González Iñárritu, and Aki Kaurismäki joined the outcry, defending a film industry that’s enjoyed state support since nineteen forty-four.

Even the American media outlet Variety published a piece about the dispute, which mentions the newly formed association, Cine Argentino Unido. Facing the backlash, the government decided to tap the brakes, promising to protect sector funding while keeping a lid on excessive administrative spending.

To read the full Variety article, follow the link in the show notes!

That said, it’s not only filmmakers that protested this week. Thousands took to the streets on Wednesday the 24th in a massive demonstration organized by the General Confederation of Labor, or CGT, one of the most powerful unions, to protest against Milei’s austerity measures. A variety of people, students, union secretaries, bank and public administration workers, among others, criticized the Omnibus bill and called for the repeal of the emergency decree. The CGT, along with other major unions, emphasized the slogan, “Our homeland is not for sale.”

The strike affected various services throughout the day, including transportation, banking, restaurants and more, with a central gathering near Congress in Buenos Aires drawing a large crowd.

Despite the government projecting calm, protesters blocked major avenues, which signals the start of a significant struggle against Milei’s liberal government.

In other news, the City Transport Ministry warned that unregistered SUBE cards will see fares skyrocketing after the 1st of April. For a bus ride, we’re talking 430 pesos (some thirty US cents at the parallel exchange rate) and double the rail fares at 260 pesos (eighteen US cents). That said, if you register your card before the fare increase, bus rides will be 270 pesos (twenty cents), and 121 (eight cents) for the social, discounted rate crew. Rail fares will range from 130 to 208 pesos — that is from nine cents to fourteen cents.

To register your SUBE card, use the government’s website, SUBE App, or one of the fifty-six SUBE Service Centers. Link in the show notes!

As prices increase, so do taxes. Some even rise from the dead. You may recall former economy minister Sergio Massa’s significant reduction of the income tax, or Impuesto a las Ganancias. Now, the president is set to go back to how things were before that, aiming to broaden the tax net. The plan, slated for presentation in Congress, suggests that individuals earning over 1.3 million pesos a month (a little over 1,000 US dollars at the parallel exchange rate) should start contributing. This move is part of Milei’s strategy to bolster government finances, with the promise of potential tax reductions once the economic situation improves. The income threshold subject to tax will be adjusted quarterly based on inflation rates.

Still on the president, multiple international news outlets reported on Milei’s speech in Davos. Fox News wrote about how he stole the spotlight at the World Economic Forum, where he went full throttle, calling out Western elites for cozying up to “collectivism.” The article even says Milei dropped truth bombs left and right, proclaiming that collectivist experiments are like trying to fix a leaky boat with a sieve. Meanwhile, CNBC wrote that the self-proclaimed anarcho-capitalist leader urged the Davos elite to ditch socialism and cozy up to good ol’ free enterprise capitalism if they want to kick poverty to the curb.

Moving on, the La Rioja provincial legislature got the go-ahead to introduce their own “quasi-currency” through debt settlement bonds, dubbed bocade. With Peronist lawmakers backing the plan, the quasi-currency is set to cover state salaries, amounting to 22.5 billion pesos (some 18 million dollars). The currency will operate with a mix of cash and bonds, which the province receives for essential payments. Meanwhile, negotiations with the Chamber of Commerce will determine its acceptance in trade.

Ricardo Quintela, the provincial governor, is critical of Milei’s austerity push and emphasized the need to create financial instruments, either virtual or physical, to navigate the economic challenges. This decision has sparked friction with the president, who wryly welcomed provincial currencies to the competition, highlighting the irony given past criticisms.

From La Rioja to Entre Rios, the northeastern province has reported a sixty-eight percent increase in cases of Covid-19. Governor Rogelio Frigerio assured that the situation is under control but emphasized the need to alert, and encouraged citizens to take necessary precautions. The Ministry of Health talked about the importance of Covid-19 vaccinations, again, describing them as safe, effective, and free, with a significant impact on reducing deaths and hospitalizations globally.

Speaking of global, we have new data on Argentina’s immigrant population. The twenty twenty-two Census revealed that more than four percent of the population (approximately two million people) are immigrants. The data indicates a prevalence of immigrants from neighboring countries, especially Paraguay and Bolivia, with Venezuela emerging as the third-largest immigrant community in Argentina. Paraguay leads with twenty-seven percent, followed by Bolivia with seventeen percent and Venezuela with eight percent. Chile, previously third in twenty ten, has fallen from the podium. The census further reveals that over seventy percent of immigrants reside in the Buenos Aires Metropolitan Area, with fifty percent in the province of Buenos Aires and twenty-two percent in the city of Buenos Aires.

On that note about the province of Buenos Aires, this summer the city of Mar del Plata is feeling the pinch of the country’s economic struggles. Even during the peak season between Christmas and February, the city saw a sparse turnout of vacationers, with only sixty percent occupancy.

If you’re planning for a quick, affordable getaway, the Buenos Aires Herald news outlet published an article listing day trip destinations from the capital. Some of those include Carlos Keen, La Plata, San Vicente and San Antonio de Areco. If you’re into traditional, cultural experiences in the countryside or simply want to be closer to nature, you may want to check out the piece. Link in the show notes!

Also on the topic of nature, various social organizations, environmentalists, and indigenous groups have launched a petition to safeguard environmental laws from proposed changes under the Omnibus Law and Emergency Decree. Concerned about the potential destruction of forests and glaciers, among other ecosystems, the modifications threaten a legislative environmental setback in Argentina.

The Programs Director at Greenpeace in Argentina emphasized the urgency of opposing these changes, calling on legislators to protect environmental progress and address the climate and biodiversity catastrophes. With the rallying cry “Save Environmental Laws,” citizens can sign the petition to join the effort in halting the proposed amendments in the Omnibus Law.

That’s it for this week! Thanks for joining us!

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¡Nos vemos la próxima semana!