MercoPress. South Atlantic News Agency

Argentine democracy at risk

Brazilian president Fernando Cardoso, in a conference this week in Sweden warned European leaders and businessmen that the “Argentine democratic system is in peril”, unless financial aid is committed.

"Given the current economic and government paralysis, we can't exclude the risk of a breaking down of Argentine institutions and a democratic involution", said Mr. Cardoso indicating it was essential for world leaders to convince the International Monetary Fund, IMF, to liberate funds for Argentina. .

Until now Mr. Cardoso had limited his statements to a formal request of funds for Argentina adding that Brazil was in no risk of contagion. .

However since the recent Mercosur presidential summit in Buenos Aires, the Brazilian president has become Argentina's strongest lobbyist warning that Argentina needs foreign aid immediately, if it is to recover. .

A similar pledge was made by Mr. Cardoso earlier this week when he addressed British Prime Minister Tony Blair and French Prime Minister Lionel Jospin during a meeting of "Progressive world leaders" in Sweden. .

Mr. Cardoso pointed out it was vital, for stability and democracy, that the IMF unblock aid to Argentina. .

German Chancellor Gerhard Schroeder during his recent visit to Argentina and Brazil promised to talk to IMF officials about the urgency of the matter. .

With presidential elections scheduled next October, Mr. Cardoso after eight years in power wants to ensure the Argentine crisis won't spill over and at the same time is committed in leaving behind a robust, dynamic Mercosur, which has been stalled by constant quarreling with Argentina since the late nineties. .

Contrary to previous Argentine presidents, who liked to blame Brazil for Mercosur problems, current Argentine president Eduardo Duhalde seems to be tuned in the same wave as Mr. Cardoso regarding Mercosur, the promotion of regional industry and international trade.