ARGENTINA: Spain Beef & more – 23rd May 2024

¡Buenos días from Greenway Parks !This is the Rorshok Argentina Update from the 23rd of May twenty twenty-four. A quick summary of what's going down in Argentina.

Let’s kick off this week’s episode with some updates on the latest drama between Javier Milei and Pedro Sánchez. The Argentine president and the Spanish prime minister have been on bad terms recently. However, the situation has now escalated to the point where Spain has permanently withdrawn its ambassador from Buenos Aires.

It all started when Óscar Puente, the Spanish Transport Minister, implied Milei was on drugs. The Argentine government responded with a statement saying that Pedro Sánchez’s government had more important issues to worry about, like the corruption accusations against the PM’s wife. Then, Milei doubled down on his remarks by calling Sánchez a coward and labeling his actions as arrogant and socialist.

On Friday the 17th, Milei traveled to Spain to discuss his new book at an event hosted by the newspaper La Razón and headline a rally organized by the far-right party Vox. However, he didn’t meet with King Felipe VI or the PM. Despite the tensions, he’s planning to return to the country next month after attending the G7 Leaders Summit in Italy. His administration insists the issues are personal, not diplomatic, so they don’t see a reason why he shouldn’t.

Want to know more about the Argentina-Spain beef? Check out the Rorshok Spain Update with the link in the show notes!

Speaking of Milei’s book, on Wednesday the 22nd the president took the stage at the Luna Park stadium in Buenos Aires to present it. It was a theatrical event, combining rock star antics and an economic lecture. Dressed in a black leather jacket, the president sang a song before delving into the themes of his book, Capitalism, Socialism and the Neoclassical Trap. The book criticizes socialism, defends monopolies, and dismisses market failure. Despite the initial enthusiasm, the crowd dwindled as the night wore on.

From one book event to another, the Buenos Aires Book Fair wrapped up last week, drawing just over one million visitors. According to early estimates, attendance was down nearly ten percent from last year, and sales took an even bigger hit, dropping between thirty and fifty percent.

Subway users in Buenos Aires also took a big hit last week, with prices quadrupling. Starting Friday the 17th, the subway fares went from 125 pesos (ten US cents according to the parallel exchange rate) to 574 pesos (forty-seven cents). This overnight increase is also part of the government’s austerity measures, and comes as federal subsidies for public transport are being slashed. That said, while fares for buses and trains have also risen, they haven’t experienced such a drastic one-time increase.

Meanwhile, the Economy Ministry is more concerned with the dollarization plans. Luis “Toto” Caputo, the Economy Minister, said that the government is ready to dollarize the economy, stating that recovery is near despite the blue dollar’s recent surge. It recently jumped from 1,000 pesos to 1,200.

The Central Bank’s lowering of the interest rates to forty percent probably influenced this increase, but Caputo also emphasized the need to end the currency exchange controls that are pegging the peso to the dollar.

Similarly, the president announced that Argentina is on the verge of lifting currency controls. Speaking at a conference in Buenos Aires, Milei highlighted plans to move towards a flexible exchange rate and eventually allow a competition of currencies, letting Argentines choose their preferred currency for transactions.

While specifics on timing remain vague, this move is part of a broader strategy to eliminate central bank debt liabilities and increase foreign reserves.

On that note about more flexibility, Milei’s administration presented a bill to Congress aimed at easing gun ownership regulations while encouraging voluntary disposal of firearms. This initiative, fulfilling one of Milei’s campaign promises, seeks to simplify the process for legal gun registration and extend the National Program for the Voluntary Surrender of Firearms for another four years.

The Security Ministry estimates there are about 800,000 unregistered firearm users in Argentina. The bill includes a one-year grace period for those unauthorized gun owners to regularize their status or surrender their weapons without legal repercussions.

In other security-related news, hundreds of police officers and teachers gathered outside a police building in the northern province of Misiones to demand pay raises. The protest, which has been going on since Thursday the 16th, evolved into blocking route twelve on Tuesday the 21st, with tents and burning tires.

The national government has formed a crisis committee and plans to deploy 200 military police officers to support local authorities. Both groups are demanding a 100% salary increase to counteract the drastic loss of purchasing power due to high inflation. Despite a recent fifteen percent raise for police, tensions remain high as the demonstrations extend beyond salary issues to address broader grievances about working conditions and government support.

While things may be heated in Misiones, a chill is settling further south. The Buenos Aires province is bracing for its coldest day of the year on Saturday the 25th, with the possibility of snow. While snowfall in Buenos Aires is rare due to its mild climate, meteorologists aren’t ruling it out completely. The coincidence of the 25th of May being a national holiday evokes memories of the historic Buenos Aires snowfall on the 9th of July of two thousand seven, so many are hoping for a repeat of that magical event. In the meantime, authorities advised residents to stay warm, dress in layers, and consume hot drinks and food to cope with the extreme cold.

Since we mentioned the 25th of May, a little reminder: On this day, Argentina commemorates the May Revolution of eighteen ten, which was a significant step towards Argentina’s independence from Spanish colonial rule. It was on this day that a series of events in Buenos Aires led to the establishment of the Primera Junta, the first local government in the country.

Speaking of anticipated dates, the Hot Sale twenty twenty-four wrapped up with impressive numbers. Organized by the Argentine Chamber of Electronic Commerce, the event boasted a 300% increase in revenue compared to the previous year. With almost 1,000 participating companies and over three million users, shoppers enjoyed an average discount of thirty percent off on various products.

Argentina’s national rugby sevens team, the Pumas, clinched victory in the twenty twenty-three-twenty twenty-four World Rugby Sevens Series by defeating South Africa with a score of fourteen to ten. The Pumas will next aim for gold at the twenty twenty-four Paris Olympics.

In other sports news, fourteen-year-old Mateo Apolonio made history by becoming the youngest player ever to debut in an Argentine professional football match. Football superstar Sergio Agüero held the previous record, having made his first-division debut at the age of fifteen. Playing for Deportivo Riestra, Apolonio entered the game as a substitute during his team’s 1-0 loss to Newell’s Old Boys in the Copa Argentina. Despite his youth, he impressed his coach and teammates.

Also on the topic of youth, QS World University Rankings named Buenos Aires the best city in Latin America for students and the second-best Spanish-speaking city worldwide, just behind Madrid. Thanks to its educational offerings, affordable cost of living, and rich cultural scene, Buenos Aires is a top choice for students. The University of Buenos Aires (or UBA) also made it into the Top 100 universities, ranking 95th.

Before we wrap up, here’s a recommended read for any bookworms out there. The literary magazine and news outlet Literary Hub published an article titled The Secret Master: On Translating the Forgotten Argentine Writer Ángel Bonomini, which delves into the author's journey of translating the novella The Novices of Lerna. Bonomini is a largely forgotten Argentine writer once admired by literary figures like Jorge Luis Borges and Silvina Ocampo.

Written by Jordan Landsman, an expat living in Buenos Aires, the article explores the cultural and literary heritage of the city, providing insight into a writer who, despite his obscurity, has left a significant mark on Argentine literature. Check out the piece with the link in the show notes!

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

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¡Nos vemos la próxima semana!