MercoPress. South Atlantic News Agency

“Argentina is broke”

“Argentina is broke, and we're all responsible”, said incoming Argentine president Eduardo Duhalde after taking office in a sober ceremony in Casa Rosada, that contrary to a few days ago, concluded with the intonation of the national anthem.

Mr. Duhalde belonging to the Peronist party is a former governor of Buenos Aires province ?the country's most important--, former vice president of Mr. Carlos Menem and the fifth Argentine president in twelve traumatic days that included extensive rioting and social upheaval with at least 30 people killed. However Mr. Duhalde arrives with an impressive political support that was elusive to all his predecessors, including Mr. De la Rúa from the Radical party, who defeated him two years ago in normal presidential elections. Mr. Duhalde managed the backing of the provincial governors, who forced the resignation of Mr. De la Rúa, and an overwhelming 260 votes in Congress, which reveals a political agreement with the opposition alliance that until fifteen days ago ruled Argentina. The new administration has promised the presentation of its full new cabinet this Friday and as important the official announcement of the policies Mr. Duhalde is planning for a country that by defaulting has isolated itself, financially, from the rest of the world and is retaining billions of dollars in savings from local residents in Argentine banks. But the main course of action seems clear: a neo-Keynesian economist and former aid when Mr. Duhalde ruled Buenos Aires province, Mr. Jorge Remes Lenicov has been confirmed as Economy Minister and together with a "Production Secretary", will be responsible for containing free market and globalisation orthodoxy. The new US dollar-Argentine peso ratio will experience a 40% depreciation and the local currency will be tied to a basket of three currencies, US dollar, Euro and Brazil's Real, (Argentina's main trade partner); retained bank deposits (that virtually brought the country to a standstill) will be returned gradually in their original currency (pesos or dollars) according to their volume; a limited conversion system will help Argentine consumers with debts in US dollars and public service utilities rates will adjust in the local currency, in spite of the original US dollar contracts when most of these companies were privatised. Internationally, a high level delegation with representatives from the political agreement that ensured Mr. Duhalde's nomination in Congress,