MercoPress. South Atlantic News Agency

Argentine elections April 27

Others headlines: Toledo needs a new start; Lula sends a warning

Argentine elections April 27

Presidential elections in Argentina will be held next April 27, with a run off if necessary May 18, instead of March 30 as was originally scheduled. However the date for the new president to take office remains May 25. The new timetable and a twelve points document was agreed between President Eduardo Duhalde, a majority of provincial governors and leaders of Congressional blocks following a meeting in the presidential residence of Olivos this Monday. The document also contemplates the annulment of open and simultaneous primaries in all parties to choose presidential candidates particularly in those organizations with more than one candidate as is the case with the ruling Peronist party. Participants agreed to have the document turned into law by Congress during the current week, including caretaker president Duhalde's resignation on May 25. But according to Home Secretary Jorge Matzkin, representatives from San Luis, Salta, La Rioja and La Pampa refused to sign the document. The twelve points also refer to thorny issues that have impeded Argentina to reach a financial assistance program with the International Monetary Fund. Among these besides sustaining and expanding social assistance programs, are the commitment to guarantee the current exchange rate stability; a two points reduction of VAT to help consumers; ratification of the 2002 federal agreement and implementation of its conditions to include 2003; modification of legislation referring to financial institutions, particularly an end to judicial de-freezing of bank deposits and an end to moratoriums to rescue indebted clients of the financial system. After the meeting President Duhalde said that "the worse is over, and if we keep to the track agreed the next president will receive a pacified, orderly, working country". Economy Minister Roberto Lavagna who has been taking most of the flak in the never ending discussions with the IMF underlined that the "agreement between the federal and provincial governments and Congressional leaders is most important; it reinforces social programs and clears all doubts regarding the electoral calendar". Last week Argentina only made a token repayment on a World Bank loan, risking to be cut off completely from international credit including loans for social programs. One point not mentioned in the document and which the IMF has insisted is the increase in public utilities rates.

Toledo needs a new start

Social democrats and moderate independent left wing candidates are the big winners of Peru's last Sunday regional and municipal election, with the only exception of Lima where a right wing candidate was elected Mayor of the capital. The big looser undoubtedly is president Alejandro Toledo and his party "Peru Posible", who so far has been unable to deliver his electoral promises of a year and a half ago when he took office. Former president Alan García and his social democrat oriented party APRA managed to win at least twelve of the 25 regional posts in dispute with independent left wing candidates taking another eight. The rest continue contested. However in Lima, where half of the country's population lives, Conservative candidate Luis Catañeda will be the next Mayor. "Yes, it was an important government defeat, and there seems to be a left oriented option, but basically I believe the electorate want a fresh political start and a change of course", said Socialist Congressman Javier Diez Canseco. President Toledo in a public appearance said that "democracy and Peru were the winners of the Sunday election", adding that in spite of having founded a party (Peru Posible), "I'm now in the helm of a country, not a party". However analyst Manuel Torrado, from the opinion polling company Datum ventured a rather complicated forecast. "Given the results and with the advance of APRA that has become by far the main opposition party, Mr. Toledo might have to end naming a Prime Minister from that party, or search for support in the Armed Forces", said Mr. Torrado. Luis Benavente from the Political Science Department of Lima University interpreted the leaning towards the left as part of a natural pendulum movement of the Peruvian electorate that happens every so many years. "However, I believe we are talking of a "refurbished" left, given that the current economic model and ideas in Latinamerica are exhausted", added Mr. Benavente.

Lula sends a warning

The United States sponsored plan to create a free trade association in the Americas, FTAA, by 2005 is unworkable and should be postponed until a new timetable can be reached, remarked Guido Mantega, the main economic advisor to Brazilian elected president Luiz Inacio Lula da Silva. "United States is not reducing its protectionism, especially regarding agriculture commodities, and this makes any deadline unworkable", said Mr. Mantega during a business conference of the American Chamber of Commerce. "Brazil will not simply open its borders and its 175 million people market without concessions from the United States. We can't give in without receiving something in exchange, that is why the FTAA timetable must be reviewed", insisted Mr.Mantega. Brazilian elected president Lula da Silva is scheduled to visit United States and meet with President George Bush in early December. However previously Mr. Lula, who anticipated that Mercosur will be the priority of his administration, will hold meetings in Argentina and Chile. Mr. Mantega said he was moderately optimistic about Brazil's economy and revealed some of Mr. Lula's administration targets for the coming year: growth between 2,5 and 3,3%; inflation 11/12% and a trade surplus of 15 billion US dollars. Given markets and investors fears, Mr. Mantega once again reassured that a Lula administration will honor all of Brazil's international agreements and keep to fiscal austerity. "A primary budge surplus and low inflation are priorities to recover Brazil's credibility in international markets and to ensure fresh foreign investment", underlined Mr. Mantega. During the presidential campaign all Brazilian candidates agreed to continue with the basics of the current economic policies that have the blessing of the IMF and a 30 billion US dollars support credit. Mr. Lula takes office January 1st.