¡Buenos días from Greenway Parks! This is the Rorshok Argentina Update from the 15th of January twenty twenty-six. A quick summary of what's going down in Argentina.

Last week, we covered the wildfires in Patagonia and the situation escalated since then. The issue has intensified with over 15,000 hectares of forest burned across the southern Chubut and Santa Cruz provinces. Fortunately, rain arrived on Sunday the 11th, bringing some relief to the firefighters and residents in areas like Epuyén.

That said, the fire brought a heated political debate with it. While the national government and some provincial officials suggested that the fires were started intentionally by Mapuche groups or even hinted at the involvement of Israeli citizens, the local judiciary pushed back. Carlos Díaz Mayer, the prosecutor in charge, said that there is no evidence in the case file to support these theories. Meanwhile, fire crews fighting the flames are protesting for better working conditions and salaries, pointing out that many of them earn below the poverty line.

In economic news, the administration made headlines by repaying 2.5 billion dollars to the United States Treasury, settling part of a currency swap. Scott Bessent, the US Treasury Secretary, praised the move, saying it was a win for the America First agenda and a sign of Argentina’s return to financial stability.

Speaking of international deals, it looks like the long-awaited trade agreement between Mercosur and the European Union is finally crossing the finish line. After more than twenty-five years of negotiations, the European Union gave the green light. The official signing is scheduled for the 17th of January in Paraguay.

This deal aims to boost Argentine exports, particularly in agriculture, by lowering tariffs. However, it still faces opposition from European farmers, especially in France, who worry about competition from South American beef and produce.

Back on the domestic front, inflation numbers for twenty twenty-five show a significant downward trend. Private consultants estimate that annual inflation ended up around 31%, which would be the lowest figure since twenty seventeen. For the month of December specifically, prices rose by 2.8%.

However, achieving those economic numbers has come with significant trade-offs. A new report by the CEPA think tank analyzed the national budget and found deep cuts in sensitive areas. Spending on health, science and social development dropped sharply compared to twenty twenty-three.

In contrast, the State Intelligence Secretariat, or SIDE, saw its funding jump by 52%. This aligns with the controversial decree we discussed last week regarding the overhaul of the intelligence agency.

On the topic of communication, President Milei is expanding his digital reach. He officially launched his social media accounts in English to communicate directly with a global audience. The launch featured a video with a character called General Ancap, a superhero persona of the president.

Meanwhile, the journalism watchdog group FOPEA released a report analyzing the president’s online behavior. They found that one in seven posts by Milei contains insults or aggressive language, often targeting journalists and political opponents.

The president is also clarifying his position on the global stage. In a recent interview, Milei praised Donald Trump, saying the US President is “redesigning the world order.” However, he clarified that this political alignment won’t stop Argentina from doing business with China. He said he has no intention of breaking trade ties with Beijing, recognizing the pragmatic need for commercial relations with the Asian giant.

While the president looks abroad, things at home are heating up—literally. A summer heatwave hit the Buenos Aires metropolitan area last week, leading to massive power outages. More than 900,000 households lost electricity due to a failure at a major substation. For most, the power was restored in a few hours, but thousands were left in the dark for longer during the sweltering temperatures.

The heat isn’t the only emergency. In the courts, judges halted their summer break to address a basic necessity: food. A federal judge allowed a lawsuit brought by social organizations to proceed during the judicial recess. They are demanding that the Ministry of Human Capital ensure food delivery to community centers. The organizations argue that the government’s delays are impacting the most vulnerable families who rely on these places for their daily meals, and the judge agreed that the right to food cannot wait for the holidays to end.

With the economy still tight, Argentines are changing their habits for their summer holidays. Tourism statistics show a massive 72% increase in Argentines visiting Brazil compared to last year. Local tourism boards and merchants cite the high costs of vacationing within the country compared to going abroad. Traditional domestic destinations like the coastal city of Mar del Plata in the Buenos Aires province are seeing a drop in visitors and spending, even though government officials initially said the season was a success.

Speaking of local beach towns, the Atlantic coast saw a freak event in Santa Clara del Mar, just north of Mar del Plata. On Monday the 12th, a phenomenon described as a mini tsunami hit the beaches. The sea retreated suddenly before surging back with huge waves, catching beachgoers by surprise. Tragically, one person died, and dozens were injured as the water dragged umbrellas and personal items out to sea.

Danger struck in the city as well. In the Palermo neighborhood of Buenos Aires City, the ceiling of a waiting room collapsed at the OSECAC medical center. Fortunately, there were no fatalities, but six people were injured and had to be taken to nearby hospitals.

From accidents to infections, health authorities have confirmed that a rise in flu cases is due to a specific variant of Influenza A known as H3N2 subclade K, or superflu. It has been detected in Buenos Aires and several other provinces. While it is highly contagious, experts say it isn’t necessarily more lethal than other strains. Still, they are urging everyone, especially the elderly and those in risk groups, to get vaccinated and follow hygiene protocols.

In other health news, a ten-year-old girl passed away from hantavirus in the province of Buenos Aires, prompting the municipality to activate containment protocols.

And on a preventative note, the vaccination campaign against RSV, the virus that causes bronchiolitis, has begun across the country. Pregnant women between thirty-two and thirty-six weeks of gestation are eligible for the shot to help protect their babies.

In the corporate world, the tech giant Mercado Libre started the year with some unexpected news. The company let go of around one hundred employees in the region, with a significant number in Argentina. The cuts primarily affected the User Experience teams. The company described it as a restructuring to become more agile, but it has sparked a conversation about whether Artificial Intelligence is beginning to replace human roles in the tech sector.

There is also trouble brewing in the world of football. The sponsor Socios.com, a blockchain platform that sells Fan Tokens allowing supporters to vote on minor club decisions, announced it has stopped payments to the Argentine Football Association, or AFA. The company is demanding the resignation of AFA president Claudio “Chiqui” Tapia, citing a lack of transparency and allegations that the funds weren’t reaching the association’s coffers. They have requested a full audit, adding more pressure to the AFA leadership.

To wrap up, a heart-warming article: Journalist Juan Mascardi published a piece in Spanish about Juan Cereigido, an Argentine entrepreneur who is launching a device that helps combat loneliness among the elderly. The article highlights how the device, inspired by his grandfather, uses AI to hold conversations but works like an old-school radio. It’s designed to help seniors feel accompanied without the complexity of modern smartphones, bridging the gap between generations.

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!

Quick question, is there a specific monopoly in Argentina you think is a big problem? Let us know at info@rorshok.com

¡Nos vemos la próxima semana!