ARGENTINA: Télam to Close & more – 7th Mar 2024

¡Buenos días from Greenway Parks! This is the Rorshok Argentina Update from the 7th of March twenty twenty-four. A quick summary of what's going down in Argentina.

The biggest news this week has to do with… well, news. On Friday the 1st, President Milei announced the decision to close operations at Télam, the government-ran national news agency, which is now suspended. Calling it a propaganda tool for former governments, he’s swiftly moving to shutter the organization altogether, sparking protests from its staff.

The government has placed over 700 employees on paid leave, disabled the agency's website, and enclosed its offices with fences. While they say these actions aim to tackle financial losses and facilitate restructuring, employees and critics argue that it represents a severe blow to press freedom and democratic expression.

This, added to the closure of the INADI anti-discrimination institute, is prompting protests from workers and unions.

The announcement of the suspension of Télam took place during the president’s first annual address to lawmakers in Congress. In preparation for his state-of-the-nation speech, the government mobilized approximately 5,000 security personnel from federal and Buenos Aires City forces to ensure safety around the Congress building.

As to the speech, he used it to urge lawmakers to either embrace his comprehensive reforms or brace for conflict. His new proposed ten-point social contract, dubbed the May 25th Pact, encompasses fundamental principles such as private property rights and fiscal balance. He proposed extensive reforms, including ending privileged pensions for former officials, mandating union leader elections and restricting collective bargaining power.

Amid cheers from his supporters, Milei underscored his unwavering commitment to change, warning of continued austerity measures and potential executive action if parliamentary support remains elusive.

Regarding the May 25th Pact, the president has called for a pre-pact meeting with all twenty-three governors and the mayor of Buenos Aires City. The goal is to convince them to outline joint guidelines and advance the ten principles for a new political and economic order.

He will have a hard time convincing some of them, though. Buenos Aires Governor Axel Kicillof delivered a speech laden with criticisms aimed at President Milei, marking clear boundaries for potential negotiations. He vehemently rejected Milei’s proposed May 25th Pact, characterizing it as more of a threat than an invitation, which he labeled as the administration’s “delirious centralism.”

Kicillof emphasized Argentina’s federal structure and urged Milei to cease pressuring governors to pass laws detrimental to their provinces’ interests.

Back to the topic of things being suspended, the government has decided to terminate the Potenciar Trabajo job assistance program, replacing it with two new initiatives aimed at social welfare and labor inclusion.

This move seeks to bypass intermediaries like social movements and municipal governments, which previously administered aid requiring an annual investment of around thirty-four million dollars. The new schemes, called Going Back to Work or Volver al Trabajo, and Social Accompaniment or Acompañamiento Social, target specific age groups and aim to enhance employability while streamlining access for beneficiaries without the need for intermediaries.

Enhancing employability is key to boost the economy. Speaking of which, retail sales dropped by twenty-five percent year-on-year in February, with an accumulated decline of twenty-seven percent for the first two months of the year compared to the same period in twenty twenty-three. According to data by the CAME, the Argentine Confederation of Medium-Sized Companies, the pharmaceutical sector saw the most significant drop in the two-month period, followed by perfumery and food.

On a somewhat related note, aviation workers in Argentina staged a twenty-four-hour strike on Wednesday the 28th of February due to dissatisfaction with a proposed wage increase offered by airline companies. The increase was twelve percent, which they deemed inadequate amid soaring inflation rates.

The strike resulted in the cancellation of over 400 flights and affected more than 35,000 passengers. Aerolíneas Argentinas, the state carrier, bore the brunt of the strike, with 330 flights rescheduled, impacting thousands of passengers domestically and internationally.

Speaking of air travel, a recent study by the Focus Market consultancy firm reveals a remarkable surge of 17,500 percent in the nominal price of domestic plane tickets in Argentina over the last five years, accompanied by a significant 4,000 percent increase in international flight costs during the same period, factoring in inflationary adjustments.

With steps taken by the current government to address monopolies and deregulate the sector, analysts anticipate potential improvements in accessibility and flight options. However, the report emphasizes the need for enhanced connectivity and private-sector initiatives to foster sustainable development and job creation in the industry.

For travelers undeterred by the rising ticket prices, there’s good news. Argentina has opened two new air routes to connect some provinces with key international destinations in the region. JetSmart has launched operations from Santiago de Chile to Mendoza, providing four weekly flights. Moreover, Paranair has initiated the Córdoba-Asunción route in Paraguay, with flights available three times a week.

These expansions come on the heels of Fly Bondi’s recent Buenos Aires-Mar del Plata connection in February and Gol’s forthcoming route from Bogotá to Ezeiza, starting in April.

Also on the celestial front, last week the government officially greenlit Elon Musk’s Starlink satellite internet service, alongside Amazon’s Project Kuiper and OneWeb.

The ENACOM telecommunications authority announced the decision, which reflects President Milei’s push for greater competition and investment in the satellite internet market. Starlink, known for its high-speed, low-latency internet service, is set to launch in Argentina in the second quarter of twenty twenty-four, promising connectivity even in remote areas.

Musk’s interest in investing in lithium exploration in the Salta province further cements his relationship with Argentina, sparking rumors of a potential visit to the country next month.

Moving on, Argentina has taken the lead in complying with EU deforestation legislation by initiating the shipment of three soy-meal consignments via the Visec platform, each with fully traceable data. Developed by The Nature Conservancy and the Tropical Forest Alliance, Visec facilitates transparency and compliance by tracking soybean origins and detecting deforestation. The strategy is geared towards reducing traceability costs and ensuring adherence to European regulations, prohibiting imports from deforested areas post-twenty twenty-one.

In other environmental news, the football icon Lionel Messi has partnered with the environmental initiative Join The Planet to support a project focused on cleaning up the Paraná River in his hometown of Rosario. Join The Planet collects discarded materials like fishing nets and plastic bottles from waterways, converting them into art pieces. For their first joint project with Messi, they’ll produce limited-edition replicas of his left boot, signed by the footballer himself.

The pre-sale of these boots, scheduled to start on the 15th of March, will contribute ten percent of proceeds towards establishing the Join The Planet foundation and supporting environmental restoration initiatives.

Speaking of football, if you want to find a team to support but don’t know where to start, the Buenos Aires Herald news outlet published a guide to choosing your Argentine football side. Sure, you probably heard about the renowned Big Five, but what about the rich tapestry of underdogs and community clubs?

Link to the guide in the show notes!.

In other sports news, Argentine tennis sensation Sebastián Báez secured his second consecutive title by triumphing at the Chile Open, defeating Chilean Alejandro Tabilo in a thrilling final. With this victory, Báez soared to 19th place in the ATP rankings, emerging as the top-ranked Argentine and the sole South American in the top twenty.

To close out this edition, remember that March comes with not one but two holidays later in the month. This year, Holy Week, or Semana Santa, is celebrated during the week leading up to Easter Sunday on the 31st. That means Friday the 29th is a national holiday. Maundy Thursday is technically not recognized as a public holiday, but schools and some businesses offer it as a day off or a partial day off.

On top of that, April begins with two additional holidays on Monday the 1st and Tuesday the 2nd. April 2nd marks Malvinas Day, commemorating the veterans and fallen of the Malvinas War between Argentina and the United Kingdom in nineteen eighty-two.

Aaaaand that’s it for this week.

We want to invite you to take a look at one of Rorshok's other projects. The Daily Knowledge is a daily pocket newspaper that comes out Monday through Friday. It is in our Ourzine format, a little booklet that you have to print in order to read. In the Daily Knowledge ourzine you’ll find a collection interesting newsletters and selected articles that takes about an hour to read. Visit rorshok.com/ourzines/thedailyknowledge to find the latest editions. The link will also be in the show notes.

¡Nos vemos la próxima semana!