Stories that caught our eye: November 8 to 15

MILEI IN TRUMPLAND

President Javier Milei flew up to Florida early on Thursday to attend the meeting of the American Conservative Union (ACU) during the rest of the week as one of its orators at United States president-elect Donald Trump’s vast residence of Mar-a-Lago in West Palm Beach along with Trump himself. It could not be confirmed at our press time whether he had clinched a meeting with Trump but in any event he may not have long to wait – there is lively speculation that he will be meeting up with not only Trump but also tycoon Elon Musk at the next session of the Conservative Political Action Conference (CPAC, founded half a century ago in 1974) at the Hilton Hotel in Puerto Madero as from December 4. Milei did have an 11-minute telephone conversation with Trump early in the week when the Republican victor reportedly (according to presidential spokesman Manuel Adorni) called him “my favourite president,” also defining his new ambassador to Washington (fintech unicorn creator Alejandro ‘Alec’ Oxenford).  On Wednesday on the eve of flying to Florida, Milei announced his intention of signing a free-trade agreement with the United States, although he also told Radio Rivadavia that he was exploring more commercial agreements with China.

CRISTINA CONVICTED (WELL CONFIRMED) – AND NO PENSION

The Federal Criminal Cassation Court on Wednesday confirmed the six-year prison sentence imposed on ex-president Cristina Fernández de Kirchner by a lower instance in late 2022 along with a disqualification from public office. The previous trial had centred on the misallocation of Santa Cruz highway contracts to the Kirchnerite tycoon Lázaro Báez, leading to her conviction for “fraudulent administration.” She will not go to jail, not only because her age (72 next February) would entitle her to house arrest but also because she still has an appeal to the Supreme Court pending, a circumstance which is expected to permit her to run for Congress in next year’s midterms. The 1,500-page ruling also confirmed other convictions and acquittals in the 2022 trial. President Javier Milei echoed the court’s decision, saying: “She is guilty of acts of corruption.” The next day Presidential Spokesperson Manuel Adorni announced that she would be stripped of her privileged pensions, which total almost 22 million pesos, with her former vice-president Amado Boudou in line for similar treatment. 

MONTHLY INFLATION AT THREE-YEAR LOW

After staying at or above four percent in all the winter months before dipping to 3.5 percent in September, last month’s inflation finally cleared the barrier of three percent to register 2.7 percent, the INDEC national statistics bureau announced last Tuesday, the lowest level since the November of 2021 when the economy was still recovering from lockdown recession. Annual inflation is now 193 percent with 107 percent so far this year. The key item of food and beverages was 1.2 percent while the main culprit was housing, water, electricity, gas and fuels at 5.4 percent, double the average, followed by garments and footwear (4.4 percent) and restaurants and hotels (4.3 percent). Core inflation (excluding regulated and seasonal prices) was 2.9 percent.

AEROLÍNEAS UNREST

Aerolíneas Argentinas on Thursday settled its conflict with its five trade unions by offering a pay increase of 16 percent in exchange for productivity improvements and the elimination of various special fringe benefits such as business class travel for pilots and their families. The productivity improvements would entail greater flexibility in the performance of tasks as well as more flying time for pilots by up to five percent. This year Aerolíneas Argentinas has already reduced its 2023 loss of US$390 million by 75 percent.

NEW BANKNOTES

The Central Bank last Wednesday placed 20,000-peso banknotes in circulation, half a year after the advent of the 10,000-peso banknote, with the aim of decongesting ATMs. The new currency bills will bear the image of liberal icon Juan Bautista Alberdi (1810-1884), an architect of the 1853 Constitution and a pet historical reference for President Javier Milei.

COPOUT OF COP29

The withdrawal of the entire Argentine delegation from the COP29 climate change conference of the United Nations in Azerbaijan (which will run until next Friday) was ordered last Wednesday. This move, presented as a rejection⁠ of the UN Agenda 2030, was interpreted as an anticipation of similar hostility on the part of United States president-elect Donald Trump. This walkout does not mean, however, any immediate withdrawal from the Paris Accords to halt global warming since this would entail a more complex process but Argentina is expected to follow Trump along that road.

DECREES RESIST CONGRESS

The special Congress session to limit DNU emergency decrees and repeal the decree granting the Executive Branch a free hand in foreign debt negotiations fell through on Wednesday due to lack of quorum. Not only did the PRO define the previous day that they would not grant quorum in order to “defend the institutions by not placing governance at risk” but several Peronist deputies also jumped ship in response to their provincial governors under heavy pressure from the national government. Tuesday’s PRO meeting argued that the ‘Ficha Limpia’ bill to bar those with criminal convictions from electoral candidacies and the conflict in Aerolíneas Argentinas were higher priorities for a special session.

DEREGULATION ADVANCES

Presidential Spokesperson Manuel Adorni announced last weekend the deregulation of postal services in the name of greater competitiveness and on Monday night the closure of the Kirchnerite housing programme Procrear, both announcements via his X social media account. It is assumed that deregulated postal services, open to anybody making the corresponding registration, would be more digital with Deregulation & State Transformation Minister Federico Sturzenegger commenting that “the post office no longer has any strategic value” with the deregulation “a key step towards developing electronic commerce.” Correo Argentino, which has 1,400 branches and posted a loss of 71.322 billion pesos last year, had been on the original list of state companies to be privatised in Milei’s ‘Ley de Bases’ but was dropped from the law’s final draft. The current legislation on postal secrecy will remain in force.

PIPELINE REBRANDED

Argentina’s government has announced that the Gasoducto Néstor Kirchner pipeline will be renamed Gasoducto Perito Francisco Pascasio Moreno (after the 19th century scientist and explorer who opened up much of Patagonia for Argentina). The 573-kilometre pipeline, initiated under the 2015-2019 Mauricio Macri presidency and inaugurated last year by then president Alberto Fernández, transports 11 million cubic metres of gas daily from the Vaca Muerta shale deposits. The name of the late 2003-2007 president has also been removed from the Centro Cultural Kirchner, now the Palacio Libertad Domingo F. Sarmiento.

WHITEWASH NETS US$20B+

The government’s tax whitewash had cleared the US$20-billion barrier even ahead of its closure before last weekend with US$20.085 billion reported on November 7, turned in by over 100,000 Argentine hoarders. “Many thanks to all the Argentines who have trusted in this profound change of economic, political, cultural and institutional course which President Javier Milei is making,” tweeted Economy Minister Luis Caputo. Bitcoin contributed US$19 million to the billion-plus dollars of the final week, thus confirming a Perfil scoop.

FOREIGN JABS

The Foreign Ministry on Monday reaffirmed Argentine sovereignty over the Malvinas with special reference to the recent landings of British military aircraft in Latin American countries. Prior to last weekend the Radical deputy Fernando Carbajal (from its Democracia para Siempre wing) lodged a criminal lawsuit against President Javier Milei and his new Foreign Minister Gerardo Werthein for “ideological persecution” and a “Stalinist-libertarian purge” against diplomatic personnel in the Foreign Ministry as unconstitutional and a violation of the Intelligence Law. 

HOOLIGAN VIOLENCE 

In a new spiral of violence in Rosario the leader of Rosario Central’s hooligan barrabrava Andrés ‘Pillín’ Bracamonte and his sidekick Daniel ‘Rana’ Atardo were shot dead last Saturday night as they were leaving the Gigante de Arroyito stadium following the match against San Lorenzo. Eyewitnesses variously described the hitmen as two persons aboard a motorcycle and “three hooded pedestrians” with the local security cameras unable to detect the shots in the dark. Bracamonte had already suffered an attempt on his life last August when two men passing on a motorcycle fired at him but only one of the bullets found its target, grazing his back.

KUN MEETS KREMLIN (MAGICIAN)

Retired football star Sergio ‘Kun’ Agüero last Wednesday held a 40-minute meeting with Santiago Caputo, President Javier Milei’s ace spin doctor, and libertarian deputy Juliana Santillán, presumably to discuss the government initiative to inject limited companies (Sociedades Anónimas Deportivas or SAD) into Argentine football. The former Argentine striker has in the past been a vocal critic of Kirchnerite taxation. Agüero minimised the dangers of the innovation because it would require approval by club members.