ARGENTINA: Veto on Pension Increase & more – 5th Sep 2024

¡Buenos días from Louse Point! This is the Rorshok Argentina Update from the 5th of September twenty twenty-four. A quick summary of what's going down in Argentina.

In his first use of the presidential veto power, Javier Milei blocked a pension increase that Congress had approved in August, arguing that it was fiscally irresponsible and would jeopardize public finances. The bill aims to boost pension payments to ensure they stay above the cost of basic goods, and it passed with a strong majority, which means Congress might have enough backing to override the veto.

The situation remains tense as lawmakers consider their next steps. On Wednesday the 4th, pensioners took to the streets in protest, and things got heated when the police used tear gas against them. Manuel Adorni, the presidential spokesperson, defended the police actions, praising the handling of the protests and downplaying the use of force, arguing that it was necessary to enforce the law and manage street blockages.

The second major topic this week is the PAIS tax. The president announced that this tax on foreign currency transactions will end in December, applying to both trade-related transactions and everyday purchases made abroad or online with credit or debit cards. Until then, the PAIS tax on imports will be reduced from 17% to 7%.

The president expects this change to lower the cost of imported goods, boosting industrial competitiveness. However, there are concerns about heightened competition from imports during an ongoing recession. Analysts also warn that while the tax cut may help ease inflation, it could also strain reserves and fiscal balance, leading to more challenges if the government continues to postpone ending the exchange controls.

Another thing that the government has modified is the Public Information Access Law. They have tightened access to public information by redefining what qualifies as public and imposing stricter criteria for accessing private data, emphasizing good faith in information requests. Additionally, the definition of a document has been narrowed, and more detailed identification requirements have been introduced for those requesting information.

Now, a follow-up of a story we covered in our previous show. Germán Kiczka, the former Misiones provincial deputy who is facing charges of pedophilia and child pornography, was captured on Friday the 30th while on the run. The Corrientes province police arrested him along with his brother just a day after the government issued an international warrant. Prosecutor Daniela Dupuy stated that the evidence against the Kiczka brothers is overwhelming, leading them to face serious charges.

The ruling party seems to be facing internal turmoil. La Libertad Avanza has lost two Congress members. Last week, we reported that, in the Chamber of Deputies, Mendoza deputy Lourdes Arrieta preemptively left the party to form her own bloc after facing backlash for her stance on a controversial prison visit involving ex-officers convicted of crimes during the military dictatorship. Now, in the Senate, Francisco Paoltroni of Formosa was expelled by his colleagues for repeatedly criticizing presidential adviser Santiago Caputo over a judicial nomination.

Back to the topic of arrest warrants, Argentina, along with the United States, the European Union, and several Latin American countries, has condemned the Venezuelan government’s arrest warrant against opposition presidential candidate Edmundo González Urrutia. The warrant is seen as a politically motivated attempt to silence González, who said he had won the recent election.

Moving on, President Milei’s plan to privatize Argentine football is facing a significant legal setback. A Buenos Aires court temporarily suspended a decree that would allow private sports corporations to compete in the top division. The Argentine Football Federation or AFA had challenged the decree, arguing it undermines the nonprofit status of football clubs, a requirement for AFA membership.

Also on the topic of football, Emiliano “Dibu” Martínez and Lautaro Martínez have been nominated for the twenty twenty-four Ballon d’Or. With his standout performances with both the national team and Aston Villa, Dibu Martínez is also in contention for the Yashin Trophy, awarded to the top goalkeeper. Lautaro Martínez has been crucial in Argentina’s Copa América victory and Inter Milan’s Serie A triumph. Meanwhile, Lionel Scaloni, Argentina’s coach, is up for the Men’s Team Coach of the Year award.

For once, not all eyes have been on football this week, though. Formula 1 is all the rage now, thanks to Argentine driver Franco Colapinto’s remarkable debut at the Italian Grand Prix in Monza. He finished 12th after starting 18th on the grid. Despite a disappointing qualifying session, where a mistake cost him a better starting position, Colapinto showcased his skill on race day, climbing six places with a steady performance and a memorable overtake on Pierre Gasly.

His debut marks the first time in over two decades that an Argentine has competed in F1, with the Williams team praising his composed driving and promising future.

In very random news, a flight from Ushuaia to Buenos Aires had to make an emergency landing after a passenger mistakenly believed his seatmate was viewing bomb instructions on his phone. In reality, the man was a local lawmaker who was nervously playing a game called Monster Demolition to calm his anxiety during takeoff.

The confusion led to passengers being evacuated and left waiting on the runway while security teams investigated. After questioning the man and finding no threat, authorities determined it was a false alarm. The Brazilian passenger who raised the concern was not allowed back on the plane, and the flight resumed hours later without further incident.

On that note about flying, Aerolíneas Argentinas has announced a major cutback, reducing its workforce by 1,500 employees, which is about 13% of its total staff. This move is part of a broader effort to improve the airline’s financial health, with the company also reporting a 70% drop in its operational deficit.

The Buenos Aires Herald published an article on everything you need to know to watch the twenty twenty-four eclipse in Patagonia. On the 2nd of October, an annular solar eclipse will be visible, with the best viewing opportunities in the Santa Cruz province. This type of eclipse happens when the moon, being at its farthest distance from Earth, obscures the sun but leaves a bright ring visible around it. In Buenos Aires, a partial eclipse will also be visible, with special screenings at the Buenos Aires City Planetarium. To know more, follow the link in the show notes!

From the Planetarium to the theater, Julio Bocca, the internationally acclaimed ballet dancer, has been appointed as the new general and artistic director of Buenos Aires’ iconic Teatro Colón. The move, driven by Culture Minister Gabriela Ricardes, aims to steer the theater towards sustainability and a renewed focus on nurturing local talent. Bocca expressed his excitement about working on the twenty twenty-five program, with the goal of maintaining the Colón’s status as a global cultural landmark.

Speaking of the performing arts, Lollapalooza Argentina has announced its twenty twenty-five lineup, with Olivia Rodrigo, Justin Timberlake, and Alanis Morissette headlining the festival. The 10th edition of the event will take place on the 21st, 22nd, and 23rd of March at the Hipódromo de San Isidro and feature international and local artists, including Shawn Mendes, Tool, Rüfüs du Sol, Foster the People, Tan Biónica, and Wos. Tickets are available online, with three-day passes starting at 220,000 pesos (which is about 170 US dollars at the parallel exchange rate).

For our last story, remember that kids and students have two important dates coming up. On the 11th of September, the country celebrates Teachers’ Day or Día del Maestro, which commemorates the anniversary of the death of Domingo Faustino Sarmiento, a former president and influential educator in Argentina. Primary schools typically close on this day, giving teachers a well-deserved day off. Schools usually hold ceremonies either just before or after the day to honor teachers, and it’s customary for parents to give small gifts or cards to show their appreciation.

Also, coinciding with the beginning of spring, the 21st of September marks Students’ Day. Most high schools and higher education institutions give students the day off to join in the festivities, which include gatherings, picnics, and outings, especially in parks and public spaces. Expect increased traffic and crowded areas, particularly in parks and popular city centers.

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

We hope you are enjoying the Rorshok Argentina update as much as we enjoy making it. Don't forget to subscribe on your favorite platform to keep up with what's going on in Argentina.

¡Nos vemos la próxima semana!