MercoPress. South Atlantic News Agency

“Dialogue round” with a national purpose.

Argentina's main business organisation, Argentine Industrial Union, UIA, gave its full support to labour's proposition for a national "dialogue round" to help elaborate a social pact that will pull the country out of recession.

The national "dialogue round" was one of labour's demand during the 36 hours long national strike that brought Argentina to a standstill last week.

"We urgently need an alliance between national production (farmers and industry), labour and the political class to create a social-economic project with a national purpose", said Jose Igancio de Mendiguren, Chairman of UIA.

"Businessmen, workers, politicians have a responsibility with government, to discuss and create growth conditions that will solve people's problems. Growth with unfed people and high unemployment does not make sense", indicated Mr. de Mengiduren.

UIA chairman underlined that Argentina can grow at 7% annually, "but to insist with a balanced budget when unemployment is increasing and in the middle of recession, will not help growth".

Argentine officials recently agreed with international credit institutions an "armour plated" financial rescue package, estimated in 15/17 billion US dollars, conditioned to changes in labour and social security legislation which is openly resisted by the unions and the ruling coalition junior partner.

Argentine Economy Minister Jose Luis Machinea revealed this week that "lower revenue and less economic activity" will push this year's budget deficit to 6,3 billion, a billion over the sum agreed with the International Monetary Fund.

Machinea also anticipated that the deficit in 2001 will reach 6,5 billion, well above the 4,8 billion estimated in the budget currently under discussion in Congress.