¡Buenos días from Greenway Parks! This is the Rorshok Argentina Update from the 27th of November twenty twenty-five. A quick summary of what's going down in Argentina.

We’ll start this episode with a controversial shift in the government. For the first time since the return of democracy in nineteen eighty-three, a military officer will lead the Defense Ministry. President Milei announced that Lieutenant General Carlos Presti, the current head of the Army, will take over. He replaces Luis Petri, who is moving to a legislative role.

This appointment breaks a forty-two-year tradition of civilian leadership in the ministry, established after the fall of the nineteen seventy-six-nineteen eighty-three dictatorship to ensure civilian control over the Armed Forces. While the government frames this as a move to end the demonization of the military and professionalize the sector, opposition leaders and human rights organizations criticized it as a step backward for democratic institutions. Presti will have to retire from active duty to assume the post.

In economic news, the country avoided a technical recession. According to INDEC, the national statistics agency, economic activity grew by 0.5% in September compared to the previous month, and 5% year-on-year. This growth in the third quarter defied the gloomier forecasts from private consultants who had predicted a slump following the market turbulence around the midterm elections.

While strong gains were seen in sectors such as fishing (58%) and finance (40%), manufacturing and public administration continued to struggle. Economists remain cautious, noting that while the numbers are positive, domestic consumption is still weak.

Fueling hopes for sustained growth, the government is betting big on energy. Officials signed a deal with the province of Chubut in Patagonia to eliminate export duties on conventional crude oil. This move aims to keep old, conventional oil fields profitable and protect jobs in the Patagonia region.

Ignacio Torres, the Governor, and Luis Caputo, the Economy Minister, agreed that the province would also revise its royalty schemes to help companies maintain their investment plans. The administration plans to extend this benefit to other oil-producing provinces like Santa Cruz, in the south, and Mendoza, in the west, to boost production across the board.

Meanwhile, the social reality remains harsh. A new study by the CELAG think tank revealed that Argentina now has the lowest minimum wage in the region, sitting at just 225 dollars a month. Despite President Javier Milei’s campaign vows that dollar-based salaries would skyrocket, analysts indicate the administration intentionally suppressed wages to fight inflation. This policy slashed purchasing power by 34% since late twenty twenty-three. As inflation continues to outpace pay raises, two-thirds of the population now earns less than the national average.

The economic strain is also reshaping the culinary scene. The Financial Times published an article analyzing how President Milei’s stabilization measures are hitting Buenos Aires restaurants. The article notes that the gastronomic boom of twenty twenty-three—driven by people rushing to spend depreciating pesos and tourists taking advantage of low prices—has evaporated. Many trendy spots that opened during the inflationary spike are now closing their doors as locals cut back on dining out and Argentina becomes expensive for foreign visitors again.

Check out the link to the article in the show notes.

Speaking of gastronomy, the wine industry is undergoing a major shake-up. The government announced the repeal of nearly one thousand regulations for the sector, aiming to cut red tape. The National Institute of Viticulture will now focus only on checking the final bottled product rather than monitoring every step of the production process.

Large wineries welcomed the move, saying it reduces costs and bureaucracy. However, small producers and grape farmers are worried. The Winegrowers Association of Mendoza warned that removing controls on the origin and variety of grapes could hurt the quality and identity of Argentine wine, damaging its reputation abroad.

On that note about the government’s new measures, the executive is restructuring immigration control. Patricia Bullrich, the Security Minister, announced the creation of a new National Migration Agency, which will operate under her ministry rather than the Interior Ministry. The new agency is modeled after the US Border Patrol and aims to tighten surveillance to combat transnational crime, drug trafficking, and human trafficking.

Staying with security forces, a troubling report has shed light on conditions in federal prisons. A joint study by the National Penitentiary Prosecutor’s Office and other human rights bodies found that cases of torture and mistreatment in federal jails rose significantly in twenty twenty-four. The report documented more than 600 victims and over 1,400 specific events of abuse, ranging from physical aggression and lack of healthcare to poor detention conditions. The penitentiary system has been under the Security Ministry’s control since the start of the Milei administration.

On the international stage, the country continues to stand apart on climate issues. At the COP30 summit in Brazil, the Argentine delegation registered formal reservations regarding the final declaration. While nearly 200 countries reached a consensus to accelerate climate action, Argentina’s representatives argued that the commitments should be voluntary and align with national legislation, distancing the country from the global push for stricter environmental targets.

In other diplomatic news, the government is strengthening ties with Israel. Pablo Quirno, the Foreign Minister, confirmed that President Milei plans to travel to Israel next year, likely in April or May. The main goal of the trip is to finalize the details for moving the Argentine Embassy from Tel Aviv to Jerusalem. This controversial move aligns Argentina with a small group of nations that recognize Jerusalem as the capital.

Back on the domestic front, the government is pushing ahead with infrastructure privatization. Major international players, including the mining conglomerate Grupo Mexico and global crop traders like Cargill, are eyeing the privatization of the Belgrano Cargas freight railway.

The government aims to hand over the operations of this massive network, which connects the northern agricultural heartland to the ports on the Paraná River. Investors believe upgrading the rail line is crucial to unlocking more soy and corn exports, as well as supporting the booming lithium and copper mining projects in the Andes.

Turning to public health, a new study has raised a red flag about water quality. A report by ITBA, the Technological Institute of Buenos Aires, found that 70% of the groundwater in the province of Buenos Aires contains arsenic levels that pose health risks. Arsenic is a naturally occurring element in the region’s soil, but long-term consumption can lead to serious conditions, including cancer and respiratory diseases.

The study warns that the contamination affects major agricultural areas and highlights the urgent need for better water treatment and infrastructure.

Since we’re on the topic of water, if you are planning a beach trip this summer, take note of new rules in Mar del Plata. Starting the 1st of December, the popular coastal city in the Buenos Aires province will start fining people for smoking on public beaches. The ban aims to reduce the massive amount of cigarette butts that end up in the sand and sea, polluting the environment.

Fines will be significant, and the municipality has installed signs marking smoke-free zones. This move aligns Mar del Plata with a growing global trend of banning smoking in outdoor recreational spaces.

In the cultural sphere, Argentine literature is having a moment. Argentine writer Gabriela Cabezón Cámara won the prestigious National Book Award in the United States for Translated Literature with her novel We Are Green and Trembling (Las niñas del naranjel). She is the third Argentine author to receive this honor.

The Copa Sudamericana football tournament also had an Argentine winner. Lanús, a team from the south of Buenos Aires, was crowned champion after a thrilling campaign. The Copa Sudamericana is the second-most prestigious club competition in South American football after Copa Libertadores.

Back to books, Buenos Aires celebrated its love for reading with a massive turnout. On Saturday the 22nd, more than 200,000 people filled Corrientes Avenue for the fifteenth edition of the Night of the Bookstores. The event transformed the iconic street into a pedestrian zone filled with open-air living rooms, author talks and book stalls.

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

Don't forget that our new very cool t-shirts are out now! Set up your personal collection and we'll give you a discount code for your friends! But it gets better… The person who sells the most t-shirts with the discount code will get a free trip to Lisbon in early April. Check the link in the show notes!

¡Nos vemos la próxima semana!