¡Buenos días from Louse Point! This is the Rorshok Argentina Update from the 11th of September twenty twenty-five. A quick summary of what's going down in Argentina.

On Sunday the 7th, President Milei and his administration faced their first major electoral test during the legislative elections in the Buenos Aires province. As the country’s most populous province, the elections essentially served as a public referendum on his economic measures, and the results delivered a significant blow to the president.

Unión por la Patria, the coalition led by Axel Kicillof, the Peronist governor, secured a commanding victory with around 47% of the vote. In stark contrast, La Libertad Avanza, President Milei’s party, came in second with just 33% percent. This was a tough night for the president, showing that the social pain from his economic shock therapy is starting to wear on his political support.

In the aftermath, Milei acknowledged the electoral setback, admitting his administration made mistakes and promising not to repeat them, though he insisted he would not back down from his overall economic plan. On the other side of the ring, Governor Kicillof emerged from the election greatly strengthened. His decisive win solidifies his role as a leader of the opposition and has already sparked conversations about him as a potential presidential candidate for twenty twenty-seven.

The markets reacted immediately and negatively on Monday the 8th. Argentine stocks and government bonds took a dive, and the peso weakened as investors grew nervous about the government’s ability to push through its reforms.

As a result of the election, the national government announced it would create a special political desk to establish a direct line of communication with provincial governors. The president himself will chair this new internal forum and include Karina Milei, his sister and Secretary of the Presidency; Martín Menem, the Lower House Speaker; and Santiago Caputo, one of Milei’s top advisors.

The goal is to negotiate and build support for the administration’s key legislative projects, as well as the October midterms. So far, the ruling party has made little effort to negotiate or establish alliances with the provincial governors. Now, after a series of legislative and electoral defeats, it seems like the government may be shifting toward a more pragmatic and cooperative strategy.

Speaking of legislative defeats, the President suffered another one last week. The Senate voted to overturn his veto of a law aimed at increasing funding for disability services. The bill has broad support across party lines, and senators managed to gather the necessary two-thirds majority to override the president’s decision. The legislation now heads to the lower house, the Chamber of Deputies, where it will face a final vote.

Another issue this week called the government’s credibility into question, after the Ministry of Human Capital admitted that a widely reported audit of the nation’s soup kitchens, which supposedly uncovered massive irregularities, never actually took place. The administration had used the findings of this ghost audit as its primary justification for halting food aid to thousands of community kitchens. After a federal judge pressed for the evidence, officials confessed that their data came from an online registry, not from any in-person inspections.

On that note about official documents that aren’t quite right, you might want to check your passport if you got it recently. RENAPER, the agency responsible for issuing them, warned that at least 5,000 passports were issued with a defect in their security ink. The flaw is invisible to the human eye but can be detected by immigration scanners, potentially causing issues when you travel.

The issue affects some AAL-series books, and the government is asking anyone with a faulty passport to return it for a free replacement. To know whether you’re affected, message the Renaper WhatsApp chatbot at the number in the show notes. If your passport falls in the bad batch, go to a Renaper office in Argentina or your nearest consulate.

On the international front, there’s a bit of a snag in Argentina’s efforts to get visa-free travel to the United States. The US has reportedly paused the country’s application for the visa waiver program. The official reason is a lack of communication between the Department of Homeland Security and the State Department, but some reports suggest that a recent corruption case involving the president’s sister may have played a role.

While that international agreement seems to be on ice, a new local regulation is moving forward in Buenos Aires province. The government has decided that virtual wallets will now be subject to the same tax withholding as traditional bank accounts. Services like Mercado Pago will have to retain Gross Income tax, or Ingresos Brutos, on transactions. Officials say this isn’t a new tax, but a move to align with the rest of the country.

A reminder: this tax is for companies, small businesses, freelancers, and professionals who are selling goods or providing services for profit.

In other news, Argentine authorities have shut down a clandestine border crossing between Argentina and Bolivia. The illegal pass, located on a private estate called Finca Karina, was a major hub for smuggling all sorts of goods, from electronics to food. The organization running it was making millions of pesos a year by charging tolls and even had food stalls set up for the smugglers.

Now, let’s turn to business, where there is some positive news. A new report from the Rosario Board of Trade forecasts that Argentina is on track for its highest oil production of this century. Gas production is also expected to hit a record high in twenty twenty-five. This boom is largely thanks to the Vaca Muerta shale formation, and it’s helping Argentina achieve its largest energy trade surplus in thirty-five years.

And in another spot of good news, the latest figures for the City of Buenos Aires show that inflation slowed down in August, coming in at 1,6%. That’s a slight drop from the 1,9% registered in July. Over the last twelve months, prices in the city have gone up by 37% percent.

In the world of sports and culture, last Thursday the 4th was an emotional night for football fans as Lionel Messi played what was expected to be his last official match for Argentina on home soil. And he went out in style, scoring two goals and assisting another in a three-to-zero win against Venezuela in a World Cup qualifier.

While he insists he’s not sure about playing in the twenty twenty-six World Cup, his performance has left fans dreaming that he might just stick around for one more.

Sticking with football, but on a much less celebratory note, the Argentine club Independiente has been disqualified from the Copa Sudamericana. CONMEBOL, the South American football governing body, handed down the harsh punishment following a violent brawl between fans during a match against Chile’s Universidad de Chile last month. On top of being kicked out, the club faces a hefty fine and must play its next fourteen international matches in empty stadiums.

Now for some news for the cinephiles out there. Oscar-winning Italian director Paolo Sorrentino, known for films like The Great Beauty, will be hosting a ten-day filmmaking residency in Argentine Patagonia. The workshop is set for December in San Martín de los Andes for fifty global filmmakers. Participants will get the chance to create their own short films under the daily guidance of Sorrentino himself.

And if all this Sorrentino talk has made you hungry, the coastal city of Mar del Plata is getting a lot of attention for its culinary scene. The city now boasts some of the country’s best seafood restaurants, a bar on the prestigious 50 Best Discovery list, and a vibrant dining scene that is attracting visitors year-round. The Buenos Aires Herald published a list of places to go to, so if you’re looking for a weekend getaway with great food, check it out. 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!