Incoming Argentine Minister of Economy Roberto Lavagna confirmed a floating currency, no price controls and a clear willingness to follow and comply with the reforms demanded by the International Monetary Fund, IMF, according to interviews in Buenos Aires Sunday newspapers.
Argentina's president enlisted a trade specialist and former diplomat to be his economy minister on Friday, the sixth person recruited over the last year for the job of rescuing a ravaged economy and a financial system bordering on collapse.
The European Commission and Chile on Friday agreed a broad political and commercial accord that was expected to lead to a liberalised trade agreement once the details were ratified by the 15 European Union governments.
More exhausted than convinced Argentine president Eduardo Duhalde announced that the long overnight talks with the provincial governors had resulted in a fourteen points program to be implemented in the next three months.
With Congress divided on the crucial issue of converting frozen bank deposits into Government bonds, and with the IMF still refusing to grant an aid package, Argentina's Minister of Economy Jorge Remes Lenicov resigned plunging the country into a political crisis of unpredictable consequences.
British newspapers are carrying increasingly concerned reports of Argentina's worsening economic crisis.
Argentine Army Commander in Chief General Ricardo Brinzoni said that a military intervention to reestablish order in the face of a social outburst can't be discarded, but it will be done in the framework of the Constitution and the rule of the law.
With barely a hundred days in office and a meager 14% public opinion support, while 49% of Argentines presumably want new elections, according to private polls, Argentine president Eduardo Duhalde said he was willing to move aside if Congress requested him.
In spite of a strong reaction in Santiago's currency markets to Argentina's decision to close banks and ban financial activities for the rest of the week, Chile can live with the situation, if things don't get worse, according to Mr. Carlos Massad, president of Chile's Central Bank.
United States and Mercosur defined this week in Buenos Aires an agenda and working calendar to eliminate trade and investment obstacles and create conditions for a greater access to markets at both ends.