¡Buenos días from BA! This is the Rorshok Argentina Update from the 4th of September twenty twenty-five. A quick summary of what's going down in Argentina.

To kick things off, an update on the bribery case involving Karina Milei, the president’s sister and Chief of Staff. Last week, a series of leaked audio recordings surfaced, in which Diego Spagnuolo, the former head of the National Disability Agency, accused Karina of receiving kickbacks from medical and pharmaceutical companies in exchange for state contracts.

This week, the situation spiraled as the government went on the offensive, alleging the leaks are the product of illegal spying orchestrated by political opponents. In a controversial move, officials even called for raids on the journalists who published the material, sparking a fierce debate about press freedom. As the government cried foul, the justice system stepped in. A federal judge issued a ban on the publication of any further recordings related to Karina Milei, a move several media outlets are challenging as censorship.

Despite the court order, police conducted raids as the investigation continued. Currently, prosecutors have more than fifty recordings of Spagnuolo. The political fallout has been swift, with President Milei’s approval ratings taking a noticeable hit in recent polls.

This political turbulence is happening alongside some economic maneuvering. This week, the government shifted its hands-off policy and decided to intervene directly in the currency exchange market. Officials are trying to curb volatility and prop up the peso, which has been hit by the ongoing political drama.

To further stabilize the situation, the Central Bank also tightened rules for financial institutions, limiting their ability to hold foreign currency --- a significant change in strategy for an administration that has championed free-market principles.

The combination of the bribery case and market uncertainty sent Argentina’s country risk up to 829 points. To put that in perspective, this index measures investor confidence, and a higher number makes it significantly more expensive for the country to borrow money internationally.

However, in a spot of good news, the government did manage to score a crucial victory by rolling over a significant portion of its local peso debt. This essentially means they convinced investors to trade maturing bonds for new ones, pushing payments further into the future and, most importantly, avoiding an immediate default that could have caused even greater economic issues.

Speaking of the treasury, the government’s austerity measures, known as the motosierra or chainsaw plan, are having a visible impact on the bakery sector. According to Martín Pinto, the president of the Bakers’ Center of Buenos Aires Province, 14,000 bakeries have shut down in the last eighteen months, with sales of facturas, or pastries, plummeting by 85%.

At the same time, neighborhood sports clubs are struggling to keep their doors open as massive hikes in utility bills make it impossible to pay for electricity and gas, forcing many to cut back on activities or close entirely.

Meanwhile, voters in the northeastern province of Corrientes went to the polls for their gubernatorial election. The incumbent, Governor Juan Pablo Valdés, coasted to a comfortable victory, securing another term. His local coalition, ECO + Vamos Corrientes, is aligned with the national opposition bloc Juntos por el Cambio. This means his political roots are with parties like the Unión Cívica Radical and PRO, placing him as a key figure in the non-Peronist opposition to President Milei’s government.

Back in Buenos Aires province, a new poll shows a dead heat between President Milei’s La Libertad Avanza party and the Peronist coalition. This sets the stage for a fiercely contested battleground in the legislative elections scheduled for the 7th of September, as both sides are statistically tied in the country’s most populous region.

While politicians battle at the polls, the armed forces are facing a different kind of fight. The Defense Ministry announced a plan to increase military control over the country’s northern border, a region known as a corridor for drug trafficking and other illegal activities. This move comes as the military itself is facing a retention crisis. The armed forces are experiencing a quiet exodus, with a significant number of trained personnel leaving due to low salaries that have not kept pace with inflation, making a military career financially unsustainable for many.

From domestic defense to international diplomacy, Argentine diplomat Rafael Grossi has officially confirmed he is running to be the next Secretary-General of the United Nations. Grossi, who is currently the highly visible Director General of the International Atomic Energy Agency, has played a central role in global nuclear oversight, particularly concerning Iran and the war in Ukraine.

In trade news, there’s a glimmer of hope for the long-delayed trade agreement between Mercosur and the European Union. After more than twenty years of negotiations stalled by issues like French agricultural protectionism and EU environmental concerns over the Amazon, the EU is reportedly preparing to present the deal to its member states for final approval.

Closer to home, Uruguay is making a strategic pitch to have the pipeline for natural gas from Argentina’s massive Vaca Muerta shale formation run through its territory. The move would not only secure Uruguay’s own energy supply but could also position the small nation as a key energy hub, potentially re-exporting Argentine gas to other markets.

On a more somber note, Argentina is mourning the loss of Raúl Barboza, the legendary accordion player and King of Chamamé, who passed away at the age of eighty-seven. Barboza was a global ambassador for the folk music of Argentina’s northeast, captivating audiences around the world with his incredible talent and passion for the genre.

From a cultural loss to a cultural celebration, ten classic Argentine dishes have earned a spot among the best in the world, according to the prestigious TasteAtlas food ranking. The list celebrated beloved staples like asado, which is the iconic social barbecue centered around slow-grilled cuts; milanesa, a crispy, thin breaded meat cutlet; choripán, a grilled sausage served in a crusty bread roll; and dulce de leche, the creamy, caramel-like spread made from milk.

In other important cultural news, the Buenos Aires Herald teamed up with the Mothers of Plaza de Mayo to translate and record the mothers’ life stories in English, creating a new audio guide now available at the House of our Children, Life and Hope in the ex-ESMA memorial space, and online.

Visitors can scan a QR code in the space to hear the English recordings and explore the mothers’ lives, the crimes of the nineteen seventy-six–nineteen eighty-three dictatorship, and Argentina’s ongoing push for memory, truth, and justice.

ESMA, a UNESCO World Heritage site in Buenos Aires City and the former Navy School of Mechanics, housed the regime’s largest secret detention and torture center, where authorities held nearly 5,000 people and murdered most of them.

You can check out the mothers’ life stories online with the link in the show notes.

Shifting gears to sports, it seems Lionel Messi’s time playing for the national team on home soil might have come to an end. On Thursday the 4th, he played what is expected to be his last official international match in Argentina, making it a historic and emotional moment for football fans across the country.

On Tuesday the 9th, Argentina will face Ecuador in what will likely be Messi’s last World Cup Qualifier match.

And speaking of the World Cup, the government announced that the twenty twenty-six tournament will not be broadcast on public television. This decision means fans will need to pay for private cable or streaming services to watch the games.

And to end on some good news from the natural world, a recent census off the coast of Chubut’s Península Valdés found a record number of southern right whales this year, with more than 1,500 individuals counted. The growing population is a huge conservation success story and a major draw for tourists who flock to the UNESCO World Heritage site for one of the world's most spectacular whale-watching seasons.

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

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¡Nos vemos la próxima semana!