May 10th, 2024
1. The Bases Law and the fiscal package were debated in the Senate
With several officials of the national cabinet present, the plenary of the committees of General Legislation, Budget and Finance and Constitutional Affairs, debated this week on the Law of Bases and Starting Points for the Freedom of the Argentines and the fiscal package, which have already been approved by the Chamber of Deputies. During the three days of discussion in committee, leaders of the ruling party were present, among them the Secretaries of Labor and Energy, Julio Cordero and Rodríguez Chirillo, respectively, Secretary of Finance Carlos Guberman, and Minister of the Interior Guillermo Francos, among others. In this context, the ruling party was not able to gather the signatures and postponed for next week the signing of the opinion of the Basic Law and the fiscal package.
2. The CGT held its second general strike
The General Confederation of Labor (CGT) carried out its second general strike in five months against the management of Javier Milei. The protest, which lasted 24 hours and was without street mobilization, is in opposition to the economic course of the Government and has as one of its purposes to condition the vote of the Ley Bases and the fiscal package, two sensitive initiatives for the unions, because they include a labor reform and the restitution of the income tax. The strike had the political support of Peronism and left-wing forces.
3. The Government offered to pay its debt with energy companies over 14 years
The National Government, through the Secretary of Energy, Eduardo Rodríguez Chirillo, announced that it will pay its debt with the energy generation companies, which exceeds US$1 billion, through a bond to be paid in 14 years. The companies reject this decision because it would imply an “enforced write-off” of 50%, due to the parity at which the AE38 bond is quoted. In a letter sent to the Minister of Economy, Luis Caputo, the association of generation companies, AGEERA, was categorical: “Our associates have expressed their rejection to the payment method.” Apparently, some companies will not reject Caputo’s proposal, since there would be oil companies that would support it, such as YPF and Pan American Energy, since the debts are for the generation of electric energy, but there are also unpaid debts from the Gas Plan.
4. President Milei toured the United States
In search of investments and to continue with the presentation of his administration, President Javier Milei traveled to the United States to participate in the Global Conference of the Milken Institute in Los Angeles. There, and in the presence of major businessmen, the President stated that free enterprise capitalism “is the best tool to end hunger, poverty and destitution around the world,” and assured that Argentina “has all the conditions to be the new Mecca of the West.” After his speech, the President met with Tesla founder Elon Musk and FIFA President Gianni Infantino.
Secretaría de Prensa: Javier Milei en el Instituto Milken: “Argentina tiene todas las condiciones para ser la nueva meca de Occidente”
5. Industrial activity and construction fell 21.2% and 42.2% in March
INDEC published the Manufacturing Production Index, which showed a 21.2% year-over-year drop, and the Construction Index, which showed a 42.2% drop. Of the manufacturing industry, all 16 divisions registered declines. Decreases were recorded in “Food and beverages” at 14.2%; “Machinery and equipment” at 37.9%; “Basic metal industries” at 34.0%; “Non-metallic mineral products” at 35.8%; “Other equipment, apparatus and instruments” at 42.8%; “Wood, paper, publishing and printing” at 19.3%; and “Furniture and mattresses, and other manufacturing industries” at 40.4%. At the same time, this week the inflation data of the City of Buenos Aires for the month of April was published, where an increase of 9.8% per month was recorded, according to the General Directorate of Statistics and Census of the Buenos Aires government. The accumulated inflation for the first four months of the year reached 72.6%.
INDEC: Índice de producción manufacturero – Marzo 2024
INDEC: Indicadores de coyuntura de la actividad de la construcción – Marzo 2024
El Cronista: La inflación de CABA perforó los dos dígitos y fue de 9,8%