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1. LXVI Mercosur Summit in Argentina: Milei formally handed over the presidency to Lula

The LXVI Mercosur Summit was held in Buenos Aires, where President Javier Milei concluded the pro tempore presidency of Argentina and formally handed over the presidency to Brazil, represented by Luiz Inácio Lula da Silva, President of Brazil. Milei took the opportunity to criticize the “bureaucratic, elephantine” structure of the bloc, advocating a radical opening towards free trade and even warned that Argentina could move forward “accompanied or alone” if deep reforms are not carried out. On the other hand, Lula defended Mercosur as a vital regional protection mechanism in times of high global instability, and highlighted diplomatic advances such as the agreement with the European Free Trade Association (EFTA), also ratifying the ongoing negotiations with the European Union. During its pro tempore presidency, Brazil plans to strengthen the bloc’s coordination in areas such as climate change, human rights and the fight against transnational crime, in clear discrepancy with Argentina’s current policy.

La Nación: Cumbre del Mercosur: Milei le cedió el mando a Lula y amenazó con irse del bloque

2. US orders Argentina to deliver 51% of its shares in YPF

In September 2023, US Judge Loretta Preska ruled against Argentina in a case related to the nationalization of YPF in 2012, carried out during the government of Cristina Fernández de Kirchner. Currently, the case is back at the center of the debate because this Monday, June 30, the judge issued a new and more concrete order: Argentina must deliver 51% of its shares in YPF within 14 days to the custody of the bank BNY Mellon, as part of the execution of a US$16.1 billion debt imposed by the 2012 expropriation. Although Argentina had been appealing the ruling, this step represents an operational advance in the judicial process, as it implies a specific instruction to cease state ownership of YPF, not just an acknowledgment of the debt. Javier Milei’s government adopted a confrontational stance with respect to this case, pointing out the “irresponsibility” of Kirchnerism in the expropriation. Meanwhile, the U.S. government, through the State Department, filed a brief requesting Judge Preska not to seize diplomatic assets or assets protected by sovereignty, such as those of the Central Bank or embassies, in case the ruling is enforced. This partial U.S. support seeks to avoid a diplomatic conflict, although it does not change the substance of the court ruling. The situation represents a significant financial and legal challenge for Argentina, in a context of scarce reserves and complex international negotiations.

La Nación: YPF explicó qué pasa con sus acciones en medio del juicio en Estados Unidos

3. In a session that ended in a scandal, the opposition advanced with two uncomfortable issues for the Government

The opposition won a discreet victory in the Chamber of Deputies after managing to approve two summons to force the government to debate different uncomfortable projects for the Casa Rosada due to their fiscal cost. One of the most relevant political facts of the day was that the governors made their contribution to reach the quorum of 129 deputies present. The session will not have an immediate impact since the bills that were debated did not have a committee opinion and therefore, in order to be approved, they required a special majority of two thirds of the votes. However, the opposition was able to approve by a simple majority two summons to force the officialism to rule on the bills in committee. The first summons approved was for the Budget and Education Commissions to discuss the different projects to increase the financing of the national universities. Then, a summons to the Health, Family and Budget Commissions was approved so that the declaration of the emergency in pediatrics, which implies “the priority and immediate allocation of budgetary resources” for the hospitals, would also be passed on Tuesday, July 8. Then, the session ended abruptly due to the lack of quorum after an attack of some deputies of Unión por la Patria to the libertarian block.

Clarín: La Libertad Avanza quedó a un paso de celebrar un triunfo en Rosario y apenas figuró en Formosa

4. Economic activity rebounded 1.9% in April, according to INDEC

marzo, y tuvo un crecimiento de 7,7% en comparación con igual mes del año pasado. Esta última cifra se explica, principalmente, por el impulso de sectores como la intermediación financiera y la construcción. El dato fue publicado por el Instituto Nacional de Estadística y Censos (Indec) en su informe sobre el Estimador Mensual de Actividad Económica (EMAE). Allí indicó que, con relación a igual mes de 2024, doce sectores del índice registraron subas en abril, entre los que se destacan Intermediación financiera (28,4% ia) y Construcción (17,1% ia).

Economic activity rebounded 1.9% in April, according to INDEC

The economy advanced 1.9% in April, compared to March, and grew 7.7% compared to the same month last year. This last figure is mainly explained by the impulse of sectors such as financial intermediation and construction. The data was published by the National Institute of Statistics and Census (Indec) in its report on the Monthly Estimator of Economic Activity (EMAE). It indicated that, compared to the same month of 2024, twelve sectors of the index recorded increases in April, among which Financial Intermediation (28.4% yoy) and Construction (17.1% yoy) stand out.

Infobae: La actividad económica creció 1,9% en abril

5. Local elections in Santa Fe and Formosa

Last weekend, Santa Fe and Formosa held local elections with mixed results. In Santa Fe, despite a low turnout, the ruling party of Maximiliano Pullaro (UCR) won in most of the districts and in 17 of the 19 municipalities, but did not achieve victory in Rosario, where the Peronist Renewal Party of Juan Monteverde surprised by winning the elections for city councilors, beating the candidate of Milei and the candidate of Pablo Javkin. In contrast, Formosa had a high turnout and ratified the power of Governor Gildo Insfrán (PJ), who obtained a resounding victory with 67.50% of the votes, thus maintaining the historical proportion of his political “model” against Frente Amplio Formoseño and La Libertad Avanza.

Clarín: La Libertad Avanza quedó a un paso de celebrar un triunfo en Rosario y apenas figuró en Formosa