Argentina's decree on ship pilots sparks crisis, government partially retreats

Argentina's government launched into a week marked by cloudy skies and humidity, mirroring the turbulent start to the implementation of Decree 690 concerning ship piloting and navigation services. This measure ignited a short, intense crisis, exposing the government's struggles to function cohesively even as it approaches its third year in office.

The initiative, driven by Federico Sturzenegger's penchant for tackling perceived small privileges, was a long-held deregulation idea shared with President Javier Milei. However, it stalled for two years within the cabinet, partly due to resistance from Patricia Bullrich, then Minister of Security. With Alejandra Monteoliva and Carlos Presti now in key security and defense roles, the path was cleared. They were crucial as they were expected to provide support from the Navy and Prefecture if the measure led to conflict, ensuring coverage.

As the decree advanced, the Legal and Technical Secretariat raised technical objections. Nevertheless, Sturzenegger pushed forward, finalizing the decree with the explicit goal of curbing the substantial salaries, reportedly exceeding $15,000 per month, earned by just over 500 maritime pilots and navigators. The immediate reaction was a strike that halted 185 ships. Attempts to implement emergency measures to replace the striking personnel proved futile. The Navy reported having only six available officers, and the Prefecture none.

The 48-hour strike paralyzed economic activity, with the hydrocarbon sector warning of a three-day fuel supply limit, potentially leading to shortages. Alarms sounded, and the issue exploded during a political meeting. Bullrich confronted Sturzenegger, finding an unexpected ally in Karina Milei, who also expressed discontent with the minister. The resolution was a tactical retreat: the decree would not be repealed, but a salary reduction for the pilots was agreed upon, a move seen as a way to mask the government's concession. Diego Santilli and Santiago Caputo were involved in managing this withdrawal.

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Federico has good intentions.