¡Buenos días from Louse Point! This is the Rorshok Argentina Update from the 18th of September twenty twenty-five. A quick summary of what's going down in Argentina.

On Monday the 15th, President Milei presented his twenty twenty-six national budget bill to Congress. In a speech that many saw as a shift in tone, he offered an olive branch to the opposition, asking for cooperation and declaring that the worst is over.

He centered the plan on strengthening human capital by boosting funding for pensions, public hospitals, and universities, while promising overall spending would shrink as a share of GDP to preserve fiscal balance. The package envisions about a 5% baseline GDP growth, with a potential 7 to 8% if reforms move forward, and it caps central-bank financing to prevent inflationary pressure.

This messaging seemed to work its magic on the markets, as Argentine stocks and bonds rallied following the announcement, suggesting investors appreciated the newfound sense of stability and predictability.

The government aims to push the bill through Congress with a strict, timely debate to avoid a repeat of last year’s postponement, while seeking dialogue with provincial leaders on funding mechanisms amid pressures from opposition lawmakers and governance partners.

While the government is painting a hopeful picture for the future, the present looks a bit more complicated. The peso had its worst week since Milei took office, dropping over 5% against the dollar and closing on Friday the 12th at 1,467 pesos. The sell-off was so sharp that the government stepped in, using Treasury funds to prop up the currency and prevent it from breaching the 1,471-peso upper limit of its trading band. Regulators also tightened the screws on currency controls, making it harder for brokers to buy dollars using short-term peso loans.

The International Monetary Fund noted that Argentine officials had informed them of the intervention, and they reiterated the need for a transparent and predictable currency policy.

This economic pressure is having a direct impact on the job market, which is showing serious signs of weakness. Businesses are reporting a spike in bounced checks, and layoffs are on the rise, with June seeing the highest number of dismissals in nine years.

In a significant political move this week, the government announced it is re-establishing the Interior Ministry and has appointed Lisandro Catalán to lead it. The decision might be an effort to improve the strained relationship between the national administration and provincial governors.

Catalán, now the former deputy chief of staff, was already the main person in charge of negotiating with the provinces. In his new, more senior role, he will join a roundtable with President Milei and other top officials to deepen ties with like-minded regional leaders.

This reshuffle aims to build the political support needed to push forward the government’s reform agenda.

Speaking of political support, many Bahía Blanca residents are feeling betrayed. Just days after Milei’s party won local elections in the city in southwest Buenos Aires, the administration cut the emergency aid fund in half, from 200 billion to 100 billion pesos (about seventy million dollars). The aid was designated for recovery from a devastating storm in March that killed twenty people.

From betrayals to bribery accusations, the investigation involving high-ranking government officials connected to the National Disability Agency continues to develop. As we covered in previous episodes, the case erupted after audio recordings attributed to Spagnuolo, the former head of the national disability agency, were leaked, in which he accuses Karina Milei, the president’s sister and chief of staff, of accepting bribes from pharmaceutical companies.

This week, Fernando Cerimedo, President Milei’s former digital strategy advisor, testified before a judge. He confirmed that Spagnuolo had told him about corruption within the agency.

In other developments, police raided a safe deposit box belonging to Spagnuolo and found eighty thousand US dollars and two thousand euros. Shortly after, Spagnuolo’s entire legal defense team resigned.

In other government news, the administration announced it will begin the partial privatization of Nucleoeléctrica Argentina. The state-run company operates the country 's three nuclear power plants: Atucha one, Atucha two, and Embalse.

Under the plan, the government will sell a 44% stake through a national and international public tender. They are offering an additional 5% of shares to employees through a participatory ownership program, while the state will retain a majority 51% stake. Officials stated the goal is to attract private capital to finance new projects, including the construction of a modular reactor.

It was also a busy week for the administration on the world stage, starting with some strong words from the President. In a pre-recorded speech transmitted during a far-right rally in Madrid, Milei paid tribute to Charlie Kirk, the conservative American activist who was shot and killed last week. Milei described Kirk as a martyr for freedom.

Without any official confirmation from US authorities on the killer’s motive, Milei blamed the murder on a wave of left-wing political violence, stating that the left is always, everywhere, a violent phenomenon full of hatred.

That alignment with the global right was also on display at the United Nations. Argentina was one of just ten countries to vote against a UN resolution calling for a peaceful two-state solution for Israel and Palestine. The resolution, which passed with an overwhelming majority of 142 votes in favor, also demanded the release of all hostages, an immediate ceasefire in Gaza, and the disarmament of Hamas.

Argentina’s vote placed it alongside Israel, the United States, Hungary, and six Pacific island nations. The move is consistent with President Milei’s strong pro-Israel stance since taking office.

More about diplomacy, as there’s a new face representing the United Kingdom in Buenos Aires. David Cairns, the UK’s new ambassador to Argentina, has formally started his role after presenting his credentials to Foreign Minister Gerardo Werthein.

What’s also coming from overseas is an increasing number of imports. A new report by the Argentine Industrial Chamber of the Clothing Industry reveals that door-to-door imports surged by nearly four hundred percent year-over-year in July, totaling over 400 million dollars in the first seven months of twenty twenty-five. This boom in imported goods, often purchased through ecommerce platforms, has reportedly overwhelmed logistics at Ezeiza International Airport, leading to significant delays in customs processing for everything from textiles to medical supplies.

And it’s not just physical goods that Argentines are eager to get from overseas. Tickets for a certain international event are also in high demand. FIFA announced that Argentines are the number one nationality among non-host countries signing up for the twenty twenty-six World Cup ticket presale draw. Demand from Argentina has outpaced that from larger and wealthier countries like Brazil and Germany.

Speaking of sports, it was a week of highs and lows for Argentine national teams. In the world of tennis, Argentina’s national team qualified for the Final Eight of the Davis Cup with a decisive victory over the Netherlands. On the other hand, it wasn’t a good week for the National Football Team. After a 1-0 loss to Ecuador in a World Cup qualifier, Argentina lost its spot at the top of the FIFA world rankings for the first time in twenty-nine months.

To wrap up, getting to the other side of the world from Buenos Aires is about to get a little easier. China Eastern Airlines has started selling tickets for its new route between Shanghai and Ezeiza, set to launch on the 4th of December. This will be the world’s longest direct flight by duration, taking around twenty-nine hours with a refueling stop in Auckland, New Zealand.

The bi-weekly service will use a Boeing 777, and round-trip economy fares are starting at around 1,700 US dollars. This new link is a big deal for strengthening ties with China and could turn Ezeiza into a regional hub for travel to Asia and Oceania, especially since both China Eastern and Aerolíneas Argentinas are part of the same SkyTeam alliance.

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

Don’t forget that we do many other updates. We’ve got country and non-country updates, including the Arctic, Ocean, and Multilateral shows.

Check the full list with the link in the show notes.

¡Nos vemos la próxima semana!