MercoPress, en Español

Montevideo, January 31st 2023 - 19:49 UTC



Hot News

Sunday, September 24th 2000 - 21:00 UTC
Full article

Euro rescue plan

The Euro experienced a 2.09% recovery at the end of the week, after reaching a record low of 85 US cents on Thursday September 21st., that prompted United States, Japan and Europe's Central banks to intervene in world money markets to prop the European common currency. US Secretary of the Treasury Lawrence Summers said that "common concerns over potential consequences for the world economy", was decisive for the intervention that also included the Bank of England and Canada's central bank. Summers talking in Prague before the beginning of the G7 Finance Ministers summit said that the US policy of a strong dollar, "remains unchanged". The surprise move rocked world money markets that didn't expect any decision given the proximity of the US presidential elections. No figures of Euros purchased by Central banks was disclosed. United States had previously rejected several attempts to boost the Euro, but fearing a loss of competitiveness from a too strong dollar vis a vis the European currency and growing concerns from American exporters finally decided to intervene.

Social unrest in Chile

Chilean president Ricardo Lagos faces serious social unrest following the truckers union decision to halt all transport next October and the government teachers decision to strike in demand for higher salaries. The truckers federation warned that it was also considering blocking roads and refineries just as recently happened in Europe. Minister of Interior José Miguel Insulza said that if truckers go ahead with their blockade plan, leaders of the protest will be fined and sent to jail as contemplated in the Security Law. Truckers are protesting for a 50% rebate in the fiscal component of the retail price of fuel and less paper work for the transport and freight industry. Teachers are demanding a 61% salary increase which the government has indicated is in no condition to face. If teachers finally strike next October it could disrupt the whole Chilean education system because it would take place at the end of the school term and the beginning of exams period.

"Political dialogue"

In an attempt to cool tempers and end the permanent bickering regar

Categories: Mercosur.

Top Comments

Disclaimer & comment rules

Commenting for this story is now closed.
If you have a Facebook account, become a fan and comment on our Facebook Page!