Stories that caught our eye: July 5 to 12

INDEPENDENCE DAY

The public holiday of Independence Day last Tuesday was given a much higher profile than usual as from the first minutes of the day when President Javier Milei could belatedly sign his 10-point Pacto de Mayo in Tucumán, joined by 17 of the 23 provincial governors (with Buenos Aires, Formosa, La Pampa, La Rioja, Santa Cruz and Tierra del Fuego the absentees alongside the Supreme Court justices) together with City Mayor Jorge and ex-president Mauricio Macri among others - presidential chief-of-staff Karina Milei was the only woman in the subsequent photograph. Milei hailed the event as a “change of epoch” but his time in the northwest was brief, speeding back to the national capital for the Te Deum and military parade also marking Independence Day that same morning. At the religious ceremony (where he was joined by most of his Cabinet) Milei had to sit through some strong words from Buenos Aires Archbishop Jorge Ignacio García Cuerva, including: “Nobody can wash their hands of the social situation we are experiencing.” The massive two-hour military parade (also attended by most of the Cabinet) along Avenida Libertador, which disrupted traffic, saw some 7,000 soldiers and policemen on the march, ranging from three historic regiments in 19th century uniforms to a state-of-the-art TAM 2C A2 tank (mounted by both President Milei and Vice-President Victoria Villarruel) as well as Malvinas war veterans. The parade prompted a politically incorrect comment from La Libertad Avanza deputy Agustín Romo: “How nice to see a patriotic event with military bands, the Grenadiers, the Air Force and the heroes of the Malvinas. At last we’re leaving behind the parades of Communist transvestites and junkies,” triggering heated reactions in the social networks as well as some applause.

MERCOSUR SIDELINED

Foreign Minister Diana Mondino stopped by the Mercosur summit in the Paraguayan capital of Asunción last Sunday in replacement of President Javier Milei, commenting in her speech that the trade bloc needs “a shock of adrenalin” for failing to take advantage of “its potential as a platform for relations with the world” and for “suffering an undeniable stagnation” in declining to access major global markets. She listed that potential as “strategic natural and energy resources, excellent human talent, a food supply of high quality and an industry with the capacity to innovate.” Mondino was also critical of a high common external tariff, advocating freer trade. Milei’s absence from the Summit was sharply criticised by his regional colleagues Luiz Inácio Lula da Silva (Brazil) and Luis Lacalle Pou (Uruguay) with the former calling his no-show “immensely foolish.” Lula was offended that Milei could find the time to star at a Conservative Political Action Conference with the previous Brazilian president Jair Bolsonaro in Brazil that same weekend but not to attend the regional summit in Paraguay.

NEW FACE, NEW NAME

The government department in charge of Argentine farming changed both its head and designation last Wednesday when Fernando Vilella was ejected in favour of his undersecretary Sergio Iraeta while the designation was changed from Bio-economy, reverting to Agriculture, Cattle-breeding and Fisheries. The new secretary will in turn be replaced as undersecretary by Manuel Chiappe. According to government sources, Vilella was handicapped by his proximity to former Cabinet chief Nicolás Posse while Iraeta was favoured by his closeness to Economy Minister Luis Caputo.

CITY INFLATION INCHES UP

Last month’s inflation in this city crept up to 4.8 percent from 4.4 percent in May, City Hall statisticians reported on Monday. Annual inflation reached 272.7 percent with 88.9 percent for the first half of this year. Among major items, sharply updated public utility billing was the leading culprit, averaging 7.3 percent, followed by education (6.5 percent) and restaurants and hotels (6.4 percent). The key ítem of food and beverages was well below average at 2.7 percent while the steepest increase was actually for insurance and financial services (11.7 percent) although with minimal impact on the overall average. Core inflation – excluding seasonal (2.4 percent) and regulated (8.5 percent) prices – was 4.1 percent.

STURZENEGGER UP AND RUNNING (INTO FIRE)

Just before last weekend Federico Sturzenegger made his long-awaited entry into the Cabinet, taking charge of the newly created Deregulation and State Transformation Ministry. Former Economy Minister Alfonso Prat- Gay was quick to question “creating a Deregulation Ministry while hanging onto the cepo capital controls, export duties and the PAIS tax,” also accusing the government of picking pensioner pockets to the tune of over six trillion pesos. Other economists were also critical with Radical deputy Martín Tetaz calling the government’s persistence with currency controls “acute Kirchneritis.” Meanwhile Sturzenegger’s deregulation drive was already underway in the aviation sector with the midweek publication of Decree 599/2024 in the Official Gazette installing “open skies” policies to permit more competition, rapidly sparking strike calls from airline employee unions with winter holidays around the corner.

OMNIBUS ON THE ROAD

Last Monday, just before President Javier Milei headed out to Tucumán for the signature of his ‘Pacto de Mayo,’ the government promulgated its ‘Ley de Bases’ omnibus and the accompanying fiscal package (Laws 27,742 and 27,743) via Decrees 592/2024 and 593/2024 published in the Official Gazette. An administrative, economic, financial and energy emergency is thus declared for the next year with various legislative prerogatives delegated to the Executive Branch while various privatisations and the pension chapter were dropped to secure the support of the moderate opposition. But the government was able to put through an amended version of its RIGI investment incentive scheme, as well as lower the income tax floor after rejection in the Senate.

MILEI STATESIDE (AGAIN)

President Javier Milei whizzed off on Thursday night to a billionaire summit in Sun Valley, Idaho, with his return scheduled for tomorrow. His entourage will consist of presidential chief-of-staff Karina Milei, Economy Minister Luis Caputo and chief advisor Demian Reidel. Regular participants include the likes of Sam Altman, Mark Zuckerberg, Bill Gates and Tim Cook.

KILLER COLD SNAP

While virtually the entire country was in the grip of a cold snap last week, it was far worse down in Patagonia where it claimed a young life with Lucas Cárdenas, 26, found dead of hypothermia by his father in the Santa Cruz provincial capital of Río Gallegos last Wednesday.

LA MATANZA DRUG ARREST

La Matanza municipal councillor Gabriel Aranda (Unión por la Patria), who headed the list of the Movimiento Evita picket movement in last August’s PAS primaries, was arrested last Thursday on suspicion of links with the drug-trafficking boss Nicolás Guimil, 29, known as ‘Chaki Chan,’ who is believed to be responsible for at least five gangland slayings.

ANOTHER FINAL FOR THE LIONELS

Argentina will be defending its Copa América title in tomorrow’s final in Miami after beating Canada 2-0 in Tuesday’s semi-final with goals from Julián Alvarez and a Lionel Messi deflection of an Enzo Fernández shot. Colombia will be the rivals of Lionel Scaloni’s squad after downing Uruguay 1-0 in the other semi-final on Wednesday.

BLEUS BLUES

Two members of the French rugby team touring South America were arrested in Mendoza on Monday following an allegation of sexual assault. Hugo Auradou, 20, and Oscar Jegou, 21, who featured in France’s 28-13 Test victory over the Pumas on Saturday, were detained in Buenos Aires and will be taken to Mendoza where the crime allegedly took place.

FUTBOL LIBRE LOSES FREEDOM

The creator of the Fútbol Libre, platform streaming football matches free of charge was arrested by Federal Police officers in Mendoza on Thursday and charged with piracy after entering into a collision course with the companies enjoying acquired transmission rights. The arrested man was not identified beyond being a 23-year-old local citizen.