July 12th, 2024
1. The May Pact was signed
At midnight on Tuesday, President Javier Milei led in Tucumán the signing of the May Pact, a commitment made with governors and opposition leaders to advance in 10 state policies that the government considers key for the direction of the country. The event took place at the Casa Histórica de Tucumán. President Milei thanked the 18 governors, two former presidents, legislators and sectorial representatives who gathered at the Historic House of Tucumán to sign the May Pact, and described it as “an act of greatness” and of “love for the homeland,” in contrast with the political, social and union leaders who did not attend because they “put their ideological blinders on” or because of “obstinacy in not wanting to give up the privileges” of the old order.
2. Fernando Vilella resigned as Secretary of Bioeconomy
During Wednesday morning, Fernando Vilella resigned as Secretary of Bioeconomy of the Nation today. His dismissal is in line with the changes that the national government is making to appoint officials closer to Milei and Francos. In his place, Sergio Iraeta will take over, but as Secretary of Agriculture, leaving the name “Secretariat of Bioeconomy” without effect. Iraeta, until Vilella’s resignation, served as Undersecretary of Agricultural Production and Forestry, and shares family ties with Juan Pazo.
Ámbito Financiero: Echaron al secretario de Agricultura, Fernando Vilella
3. The Mercosur summit was held, without Milei
Mercosur leaders met in Asunción, Paraguay, and discussed key issues such as trade “flexibilization,” tariff reductions, the regional economic situation and strategies to strengthen integration among member countries, amid internal political and commercial tensions. The presidents of Brazil, Lula da Silva; Paraguay, Santiago Peña; Bolivia, Luis Arce and Uruguay, Luis Lacalle Pou, among others, participated in the summit. The major absentee was the Argentinean president, Javier Milei, due to recent tensions with the Brazilian president. Argentina, the bloc’s second largest economy, was represented instead by its foreign minister Diana Mondino, but Milei’s absence was the subject of several attacks by the leaders. Lacalle Pou reproached him: “If Mercosur is so important, all the presidents should be here. I attach importance to Mercosur. If we really believe in this bloc, we should all be here.” At the same time, Luis Arce regretted the “not very serious statements” of those who said that the coup d’état in Bolivia had been a “self-coup,” in an apparent reference to the controversy with the Argentine government, which last week said that it was “a false denunciation of a coup d’état.” The Paraguayan President, Peña, said that Mercosur has “integration fatigue.”
4. INDEC released inflation and Basic Food Basket data for June
As every month, today INDEC released the Consumer Price Index, which estimates inflation for each month. The CPI for June was 4.6%, accumulating 79.8% so far this year and 271.5% in the last 12 months. However, the most significant fact was that core inflation – that which does not include regulated or seasonal prices – increased 3.7%. On the other hand, INDEC reported this Friday that in the same month a family of four needed $873,169 not to be poor. This is an increase of 2.6% with respect to the previous month. Meanwhile, the basic food basket increased by 1.6% and a family of four needed $393,319 in order not to be indigent.
La Nación: Federico Sturzenegger es el nuevo ministro de Desregulación y Transformación del Estado
5. The Government took measures to deregulate the airline market
The Argentine government has begun deregulating the airline industry through Decree 599/2024, allowing freer and more competitive access to the market. This is an initiative that allows more ramp operators and each airline to choose the company that provides the service. At present, Intercargo has exclusivity and some airlines, such as Flybondi and American Airlines, provide their own services. The measures include the reform of the Aeronautical Code and the implementation of more agile and transparent administrative procedures to avoid monopolies, promote new routes, and foster fair competition and tariff deregulation.
Ámbito Financiero: Cielos abiertos: el Gobierno oficializó la desregulación aerocomercial