World
Argentina reports its first single-digit inflation in 6 months as markets swoon and costs hit home
Argentina’s monthly inflation rate eased sharply to a single-digit rate in April for the first time in half a year, data released Tuesday showed, a closely watched indicator that bolsters President Javier Milei’s severe austerity program aimed at fixing the country’s troubled economy.
Prices rose at a rate of 8.8% last month, the Argentine government statistics agency reported, down from a monthly rate of 11% in March and well below a peak of 25% last December, when Milei became president with a mission to combat Argentina’s dizzying inflation, among the highest in the world.
ARGENTINA WILL GET NEXT INSTALLMENT OF BAILOUT AS IMF PRAISES MILEI’S AUSTERITY POLICIES
“Inflation is being pulverized,” Manuel Adorni, the presidential spokesperson, posted on social media platform X after the announcement. “Its death certificate is being signed.”
Although praised by the International Monetary Fund and cheered by market watchers, Milei’s cost-cutting and deregulation campaign has, at least in the short term, squeezed families whose money has plummeted in value while the cost of nearly everything has skyrocketed. Annual inflation, the statistics agency reported Tuesday, climbed slightly to 289.4%.
“People are in pain,” said 23-year-old Augustin Perez, a supermarket worker in the suburbs of Buenos Aires who said his rent had soared by 90% since Milei deregulated the real estate market and his electricity bill had nearly tripled since the government slashed subsidies. “They say things are getting better, but how? I don’t understand.”
A vendor waits for customers at the central market for fruit and vegetables in Buenos Aires, Argentina, Friday, May 10, 2024. (AP Photo/Natacha Pisarenko)
Milei’s social media feed in recent weeks has become a stream of good economic news: Argentine bonds posting some of the best gains among emerging markets, officials celebrating its first quarterly surplus since 2008 and the IMF announcing Monday it would release another $800 million loan — a symbolic vote of confidence in Milei’s overhaul.
“The important thing is to score goals now,” Milei said at an event Tuesday honoring former President Carlos Menem, a divisive figure whose success driving hyperinflation down to single digits through free-market policies Milei repeatedly references. “We are beating inflation.”
Even so, some experts warn that falling inflation isn’t necessarily an economic victory — rather the symptom of a painful recession. The IMF expects Argentina’s gross domestic product to shrink by 2.8% this year.
“You’ve had a massive collapse in private spending, which explains why consumption has dropped dramatically and why inflation is also falling,” said Monica de Bolle, a senior fellow at the Peterson Institute for International Economics who studies emerging markets. “People are worse off than they were before. That leads them to spend less.”
Signs of an economic slowdown are everywhere in Buenos Aires — the lines snaking outside discounted groceries, the empty seats in the city’s typically booming restaurants, the growing strikes and protests.
At an open-air market in the capital’s Liniers neighborhood, Lidia Pacheco makes a beeline for the garbage dump. Several times a week, the 45-year-old mother of four rummages through the pungent pile to salvage the tomatoes with the least mold.
“This place saves me,” Pacheco said. Sky-high prices have forced her to stick to worn-out clothes and shoes and change her diet to the point of giving up yerba mate, Argentina’s ubiquitous national drink brewed from bitter leaves. “Whatever I earn from selling clothes goes to eating,” she said.
Argentina’s retail sales in the first quarter of 2024 fell nearly 20% compared to the year before, a clip comparable to that of the 2020 pandemic lockdowns. The consumption of beef — an Argentine classic — dropped to its lowest level in three decades this quarter, the government reported, prompting panicked editorials about a crisis in Argentina’s national psyche.
“Now I buy pork and chicken instead,” said Leonardo Buono, 51-year-old hospital worker. “It’s an intense shock, this economic adjustment.”
Milei, a self-proclaimed “anarcho-capitalist” and former TV personality, warned his policies would hurt at first.
He campaigned brandishing a chainsaw to symbolize all the cutting he would do to Argentina’s bloated state, a dramatic change from successive left-leaning Peronist governments that ran vast budget deficits financed by printing money.
Promising the pain would pay off, he slashed spending on everything from construction and cultural centers to education and energy subsidies, from soup kitchens and social programs to pensions and public companies. He has also devalued the Argentine peso by 54%, helping close the chasm between the peso’s official and black-market exchange rates but also fueling inflation.
Inflation in the first four months of 2024 surged by 65%, the government statistics agency reported Tuesday. Prices in shops and restaurants have reached levels similar to those in the U.S. and Europe.
But Argentine wages have remained stagnant or declined, with the monthly minimum wage for regulated workers just $264 as of this month, with workers in the informal economy often paid less.
Today that sum can buy scarcely more than a few nice meals at Don Julio, a famous Buenos Aires steakhouse. Nearly 60% of the country’s 46 million people now live in poverty, a 20-year high, according to a study in January by Argentina’s Catholic University.
Even as discontent appears to rise, the president’s approval ratings have remained high, around 50%, according to a survey this month by Argentine consulting firm Circuitos — possibly a result of Milei’s success blaming his predecessors for the crisis.
“It’s not his fault, it’s the Peronists who ruined the country, and Milei is trying to do his best,” said Rainer Silva, a Venezuelan taxi driver who fled his own country’s economic collapse for Argentina five years ago. “He’s like Trump, everyone’s against him.”
Argentina’s powerful trade unions and leftist political parties have pushed back against Milei with weekly street protests, but haven’t managed to galvanize a broad swath of society.
That could change — last week, a massive protest against budget cuts to public universities visibly hit a nerve, drawing hundreds of thousands of people.
“The current situation is completely unsustainable,” said de Bolle, the economy expert.
World
Hamas used sexual violence ‘deliberately and systematically’ on Oct 7, commission report finds
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WARNING: This article includes graphic and disturbing accounts from the October 7 massacre in Israel.
Hamas and its Palestinian collaborators used sexual and gender-based violence “deliberately and systematically” as an inherent part of a wider strategy of the 2023 massacres in southern Israel, according to a report released Tuesday by the Civil Commission on Oct. 7 Crimes Against Women and Children.
The Israeli nonprofit said its investigation documented evidence of abuse at multiple sites during the Oct. 7 terror invasion, including the Nova Music Festival, kibbutzim near the Gaza border, Israel Defense Forces bases, among hostages in captivity and in the condition of recovered bodies showing signs consistent with sexual violence.
According to the report, investigators identified at least 13 recurring forms of abuse, including rape, sexual torture, shootings directed at victims’ genital areas and abuse carried out after death.
ISRAEL’S QUEST FOR JUSTICE EXPOSES HAMAS’ SYSTEMATIC SEXUAL VIOLENCE CAMPAIGN DURING OCTOBER 7 MASSACRE
A Hamas terrorist is seen walking around a residential neighborhood in southern Israel in undated bodycam footage released by the Israel Defense Forces. The footage was shown to foreign correspondents on Oct. 16, 2023, as part of a 40-minute reel compiled from the Hamas attack on Oct. 7. (Israel Defense Forces/AP)
Dr. Cochav Elkayam-Levy, founder and chair of the Civil Commission and a principal co-author of the report, told Fox News Digital that the greatest challenge in compiling the findings was the team’s repeated exposure to graphic material and the trauma associated with reviewing it on a regular basis.
“We had to not only collect materials, but also review and analyze it alongside forensic experts while witnessing human suffering at its worst,” Elkayam-Levy said. “What motivated us was the denial, the hesitation and the questioning. We wanted to ensure that the world knows what happened to the victims.
“For us, it is a final act of justice for the victims,” she added.
The report also detailed cases in which sexual violence was inflicted in front of or involving family members, including one incident in which relatives were allegedly forced to carry out acts on each other.
FREED HOSTAGE ROM BRASLAVSKI DETAILS ABUSE, STARVATION DURING 738 DAYS IN GAZA CAPTIVITY
People visit the site of the Nova music festival in Re’im, southern Israel, where revelers were killed in a cross-border attack by Hamas on Oct. 7, 2023. The visit took place on Jan. 14, 2024, marking 100 days since the start of the war between Israel and Hamas. (Leo Correa/AP)
It further accused Hamas and allied perpetrators of using videos, digital platforms and social media as tools to magnify psychological harm, spread fear and publicize the attacks, including by distributing sexualized material.
Elkayam-Levy said she hopes the findings will not remain confined to academics, human rights organizations or activists, but will also be studied by counterterrorism and national security experts to better understand and confront such atrocities.
“We cannot prevent what we do not fully understand,” Elkayam-Levy said. “No single prosecution could ever capture the full magnitude of these crimes in the way this report does. It is therefore critical that policymakers, decision-makers, members of Congress and senators find ways to formally recognize these findings and hold hearings so we can begin addressing this issue. We want the findings of this report to receive formal institutional recognition.”
The report, Elkayam-Levy noted, underscores that victims of the Oct. 7 atrocities came from 52 countries, highlighting the global scope and impact of the attack.
Witness testimony cited in the report included an account of a woman being sexually assaulted before being beheaded. Another witness described seeing a woman dragged from a vehicle, pinned against a wall, repeatedly raped and then stabbed, with the assault allegedly continuing after her death.
In another case, a witness described discovering the body of a man whose genitals had been severed, lying beside the body of a woman holding them, in what the report described as an apparent effort to degrade and humiliate the victims.
A Hamas terrorist is seen walking around a residential neighborhood in southern Israel in undated bodycam footage released by the Israel Defense Forces amid the Hamas attack on Israel on Oct. 7, 2023. (Israel Defense Forces/AP)
JEWISH DEM LAWMAKER PANS NY TIMES, SUGGESTS PAPER ON ‘HAMAS’ PAYROLL’ FOR PALESTINIAN PRISONER DOG RAPE REPORT
Investigators said some female victims were found naked or partially unclothed, with evidence of severe mutilation and objects including grenades, nails and household tools inserted into their bodies. The report also cited gunshot wounds, cuts and burn injuries concentrated on intimate areas.
The report said some female bodies brought to morgues showed broken pelvises or legs, bloodied underwear and additional trauma to the abdomen or groin.
Former hostages, both women and men, have also testified to rape, sexual torture and other forms of abuse during abduction or captivity, according to the report. It said some female captives reported sexual assaults while receiving treatment in Gaza hospitals for injuries sustained during the attacks.
A bloodied handprint stains a wall inside a house in the Nir Oz kibbutz near the Gaza border after a Hamas attack days earlier. (Alexi J. Rosenfeld/Getty Images)
Male hostages likewise described sexual abuse while in captivity, including assaults in showers and incidents carried out under armed threat while victims were naked, the report said. One former hostage recounted being sexually assaulted when a captor forcibly rubbed his genitals against the victim’s anus.
Last month, former hostage Rom Braslavski recounted the abuse he said he endured during captivity in an exclusive interview with Fox News Digital.
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“They would hit me with whatever they had on hand. I underwent severe torture, bondage and sexual abuse. Everything they could do to me, they did. My body is still covered in scars. After four months of torture, I was clinically dead, rolling my eyes and passing out. They decided to stop the violence and brought doctors to treat me with injections and gave me food again,” he said.
The report said sexual and gender-based violence was “widespread and systematic” and constituted an “integral component” of both the Oct. 7 attacks and the subsequent treatment of captives, while calling the prosecution of such crimes an “urgent” priority to be pursued through international accountability mechanisms.
A soldier of the Military Rabbinate unit opens a container holding bodies killed during the Hamas attack on Israel’s southern border as identification continues at the Shura army base in Ramle, Israel, on Oct. 24, 2023. (Amir Levy/Getty Images)
Among its recommendations, the commission called for targeted sanctions against individuals and entities accused of carrying out or materially supporting the Oct. 7 attack and its aftermath. It also urged action against what it described as denial, minimization or politicization of the sexual crimes committed during the massacre and in captivity.
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“The Commission further recommends that Israel adopt a comprehensive gender strategy within its prosecutorial framework and establish a specialized chamber or panel of judges dedicated to the prosecution of sexual and gender-based crimes committed on October 7th and during captivity,” the report said.
Elkayam-Levy said the report has received widespread international attention, including front-page coverage in U.S. and global media outlets. “We feel the discussion has shifted from questioning whether these crimes occurred to examining their consequences,” she said. “There is now a substantial legal evidentiary foundation preserved in a secure archive that cannot be denied.”
World
Spanish row fuels north–south tensions ahead of tough EU budget talks
The Spanish government is seeking to contain a scandal linked to EU pandemic funds, categorically denying that it used European money to pay pensions, as member states prepare for tough budget talks amid deep divisions over how funding should be allocated.
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An official in Madrid with direct knowledge of how EU funds are structured told Euronews that a technical matter is being instrumentalised in a way that is “simply false”, accusing the opposition of playing politics over what it describes as an accounting issue.
A Spanish budget watchdog reported earlier this month that the government of Pedro Sánchez used budget credits linked to the EU’s Recovery and Resilience Facility (RRF), an economic plan partly funded through common debt designed to revitalise the bloc’s economy after Covid, to partly finance Spanish pensions in November 2024.
Madrid insists it did not breach the rules.
The European Commission asked Madrid for clarification after initial newspaper reports, according to a person familiar with the matter. It did not issue a follow-up request once Madrid provided an explanation, and Spanish authorities consider the issue closed.
However, the political scandal lingers, even as Madrid insists that “not a single euro” of EU money has been misused, amid backlash in so-called frugal countries. Spain and Italy were the biggest beneficiaries of the €750 billion recovery fund approved in summer 2020 after difficult talks.
In Madrid, the opposition People’s Party has demanded that Sánchez appear before Congress to explain the matter. The issue is also making waves in the European Parliament, with strong reactions from conservative lawmakers.
“If these allegations are confirmed, we are facing a serious abuse of European taxpayers’ money,” wrote Tomáš Zdechovský (Czechia/EPP), an influential centre-right member of the European Parliament’s budgetary committee, on X. “Europe cannot tolerate any misuse of recovery funds.”
“Is €10 billion in EU funds, intended for recovery after the pandemic, quietly being used to help pay Spanish pensions? It would confirm our worst fears about these funds,” said Dirk Gotink (The Netherlands/EPP).
Madrid sources insist the issue is being overblown for political purposes.
A government official pointed to the country’s economic performance and pushed back against the frugal-versus-south narrative, which often presents the wealthier north subsidising the weaker south. “Spain is the fastest growing economy in Europe, Germany is not paying our pensions,” said a second Madrid official.
The incident does, however, underscore the additional complications the country is facing due to its inability to approve a budget in a fragmented parliament. After failing to deliver a fresh budget for 2025, Madrid was forced to roll over a plan approved in 2023.
A fight over the EU’s financial future
The timing of the controversy is particularly sensitive.
Brussels is preparing to launch negotiations on the next Multiannual Financial Framework (MFF), the EU’s seven-year budget for 2028–2034, and a central question will be what to do with the roughly €750 billion in joint debt accumulated through the recovery plan.
That programme was the largest and most politically consequential collective borrowing exercise in EU history. Whether it is ultimately seen as a success or a cautionary tale will inevitably shape how member states approach future proposals for shared financing.
Spain, the second-largest recipient of the initiative’s funding with a total of around €60 billion already received, has been among the most vocal advocates for an ambitious European budget and a permanent mechanism to pool financing needs.
Spanish Finance Minister Carlos Cuerpo has argued that pooling national debt at the EU level could generate annual savings of up to €25 billion.
Cuerpo, who is now Sánchez’s number two in government, echoed remarks made by France, Mario Draghi and a number of European intellectuals calling for a more efficient borrowing mechanism that would allow the EU to tap into the European Commission’s triple-A rating and lower financing costs for all 27 member states.
While the European Commission’s current budget proposal does not include new borrowing, contentious debate lies ahead over how to finance the repayment of existing recovery debt. Frugal northern countries like the Netherlands and Germany favour strict repayment schedules, even if that means cuts to other spending programmes.
On Thursday, German Chancellor Friedrich Merz reiterated his country’s opposition, even if the German central bank has been more nuanced about the benefits and risks of pooling debt.
Southern member states, including France and Greece, are pushing to roll over the debt accumulated during the pandemic, with President Emmanuel Macron describing calls for early repayments as “idiotic”. Paris is an advocate of a European safe-asset mechanism.
A European official supportive of the plan said the Spanish controversy is being weaponised not so much against Madrid, but against proposals put forward by southern countries ahead of the budget talks.
“I wouldn’t be surprised if this is used to kill rollover proposal,” the diplomat said.
The issue of the next European budget will feature in an EU summit scheduled in June.
World
U.S. and China Will Start Discussing A.I. Safety, Bessent Says
The United States and China will discuss guardrails on artificial intelligence, including establishing a protocol for keeping powerful A.I. models out of the hands of nonstate actors, Treasury Secretary Scott Bessent said on Thursday.
Mr. Bessent, who was speaking from Beijing in an interview with CNBC, did not give more details, including when these discussions would take place. But Xi Jinping, China’s leader, and President Trump had been expected to discuss A.I. during their summit in the Chinese capital.
If these talks happen, it would be the first time the two countries formally take up the issue during Mr. Trump’s second term. The capabilities and usage of A.I. have grown rapidly, and so have concerns that this technology could be weaponized by hackers and terrorists, or spiral out of human control.
“The two A.I. superpowers are going to start talking,” Mr. Bessent said. “We’re going to set up a protocol in terms of, how do we go forward with best practices for A.I. to make sure nonstate actors don’t get ahold of these models.”
Still, Mr. Bessent made clear that the fierce competition between the United States and China for supremacy in A.I. — which has been a major hurdle to cooperation on safety — remained front of mind for U.S. policymakers. Officials and experts in both countries have argued that they cannot slow technological development and risk losing out to their rivals.
Mr. Bessent said that the United States was willing to cooperate with China on A.I. safety because “the Chinese are substantially behind us” in terms of the technology’s development.
“I do not think we would be having the same discussions if they were this far ahead of us. So we’re going to put in U.S. best practices, U.S. values, on this, and then roll those out to the world,” Mr. Bessent said.
Experts have suggested that China’s A.I. models may be a few months behind the leading U.S. models.
Another hurdle to the United States and China working together on A.I. safety is that they have generally focused on different potential threats.
American experts have generally highlighted existential risks, such as the possibility of artificial general intelligence, or super-intelligence that exceeds that of humans. Chinese researchers and officials have more often highlighted risks related to social stability and information control, such as the possibility of chatbots producing content that challenges China’s leadership and policies.
Still, researchers in both countries have highlighted some shared risks, such as the possibility of A.I. being used to develop new biological weapons.
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