¡Buenos días from Greenway Parks! This is the Rorshok Argentina Update from the 22nd of January twenty twenty-six. A quick summary of what's going down in Argentina.

Let’s start with an update on a story from last week. After more than twenty-five years of negotiations, the Mercosur and the European Union have officially signed their historic trade agreement. Leaders gathered in Asunción, Paraguay, on Saturday the 17th to formalize the deal, which eliminates tariffs on roughly 90% of goods traded between the two blocs. While this opens European markets to South American agricultural products, it still faces hurdles. The agreement needs ratification from the European Parliament and the legislatures of the Mercosur countries. Plus, French farmers are still protesting, fearing the competition from Argentine beef and produce.

Speaking of the legislature, President Milei called for extraordinary sessions in Congress for February. The agenda is heavy. He wants lawmakers to ratify that new Mercosur-EU deal, but he is also pushing for a controversial labor reform to change severance pay and simplify hiring. Also on the docket is a bill to modify the Glaciers Law, which would allow mining activity in areas currently protected near ice masses. Environmental groups are already voicing strong opposition.

In security news, the government officially designated the Muslim Brotherhood as a terrorist organization. The decree, signed by President Milei, aligns Argentina with the United States and other Western allies who have made similar moves. The administration said that the measure aims to strengthen the prevention and punishment of terrorism by freezing assets and restricting the group’s activities within the country.

Now, let’s look at the economy. The government announced that twenty twenty-five ended with a primary fiscal surplus of 1.4 percent of the GDP, marking the second year in a row with positive numbers. Luis Caputo, the Economy Minister, celebrated the result.

The World Bank and the International Monetary Fund both predict a 4% increase in Argentina’s per capita money supply in twenty twenty-six. The World Bank lowered its initial prediction, which was at 4.6% a few months ago. To support the energy sector specifically, the government secured a 400-million-dollar loan from the Development Bank of Latin America to help improve infrastructure and target subsidies better.

However, not everyone is optimistic about the cuts used to achieve a fiscal surplus. A new report from the World Economic Forum in Davos identified insufficient public services and social protections as the number one risk for Argentina.

For those keeping an eye on their paychecks, there is news on income taxes. The government updated the floor for the income tax for the first half of twenty twenty-six. Now, single workers will only start paying the tax if they earn more than two and a half million pesos a month (about 1,700 US dollars). For a married employee with two children, the threshold is higher, sitting at around 3.3 million pesos (2,300 dollars). This change is retroactive to the 1st of January, so employers might have to recalculate withholdings and refund money to some employees in their next paycheck.

In the legal arena, the long-running battle over the expropriation of the state oil company YPF continues. The government accused the litigation fund Burford Capital of procedural harassment. Burford asked a New York judge to sanction Argentina, arguing officials haven’t handed over all the required emails and messages for the case. Argentine lawyers fired back, saying the fund is just trying to obstruct the country’s economic recovery and that the state has already provided more than 100,000 pages of documents.

On that note about oil, a ship carrying nearly 5,800 electric and hybrid vehicles from the Chinese automaker BYD docked in Zárate, in the Buenos Aires province. This is the largest single shipment of its kind to date. It has sparked a debate because the government allowed these cars to enter with significantly lower import tariffs. While officials say it encourages green energy, some local politicians argue it hurts domestic manufacturers who can’t compete with the Chinese prices.

Staying with business, the Argentine fintech startup Pomelo kicked off the year with a win. The company raised fifty-five million dollars in a new round of investment. Pomelo provides the infrastructure for other companies to issue cards and process payments. They plan to use the cash to expand their credit business in Brazil and Mexico and launch a new credit card linked to stablecoins, allowing users to spend globally without worrying about currency fluctuations.

Turning to public health, authorities are worried about a sharp rise in syphilis cases. The Ministry of Health reported a 64% increase in twenty twenty-five compared to the average of the previous five years. There were more than 55,000 confirmed infections last year alone. Officials are urging people to use protection and get tested, as the disease is curable but can cause serious damage if left untreated.

Now, an update on a story from last week regarding the fires in Patagonia. Unfortunately, the relief from the rain was temporary. Hotspots reignited in the southern Chubut province due to high temperatures and dry conditions. Firefighters are battling flames in the Epuyén and El Hoyo areas. While the fire shouldn’t spread past its current perimeter, smoke is visible again, and crews are working around the clock. The situation is even worse across the border in Chile, where wildfires have tragically claimed twenty lives.

On a much more ancient note, scientists in the southwestern Neuquén province identified a new species of dinosaur: a long-necked herbivore, part of the titanosaur group, that lived about eighty-three million years ago. Even though it was a titan, this one was relatively small for its family, weighing about ten tons---roughly the size of a city bus. The discovery helps paleontologists understand how these massive animals evolved and coexisted in Patagonia.

If you prefer modern entertainment, twenty twenty-six is shaping up to be a huge year for music. The concert calendar is packed with major returns. Rock legends AC/DC will take over the River Plate Stadium in March for their first Argentine shows in sixteen years. Pop fans are also in for a treat, as Rosalía is set to perform in August, and the global K-Pop sensation BTS confirmed they will visit Buenos Aires in October. Other big acts like Bad Bunny and My Chemical Romance are also scheduled for February.

In some tragic news from the mountains. A thirty-three-year-old French mountaineer named Guillaume Ferey died while trying to summit Mount Aconcagua in Mendoza, in western Argentina. He collapsed near the top, at an altitude of about 6,700 meters (22,000 feet). This is the second fatality of the climbing season on the highest peak in the Americas. Authorities remind climbers that the mountain demands extreme caution, even for experienced adventurers.

On a lighter note, Argentine tennis players are having a strong start at the Australian Open. Sebastián Báez fought through a grueling three-hour match to beat his French opponent, Giovanni Mpetshi Perricard, and reach the second round. He isn’t alone; four other Argentines, including Francisco Cerúndolo and Tomás Etcheverry, also advanced. It is a great showing for the country in the first Grand Slam of the year.

To wrap up, an encouraging analysis: Sebastián Kind, former energy official and current collaborator to the La Nación news outlet, published a piece in Spanish celebrating the 10th anniversary of Argentina’s renewable energy law. The article highlights how the country defied skeptics, taking green energy from under 2% to nearly 20% of the grid in just a decade. It serves as a powerful reminder that clear rules and political continuity over partisan bickering can attract billions in investment and achieve world-class results.

To read the full piece, check out the link in the show notes!

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

Remember that we sell very cool t-shirts, check them out with the link in the show notes.

¡Nos vemos la próxima semana!