MercoPress. South Atlantic News Agency

“We can't be hostages of a Mercosur full of problems”

Uruguay's trade links can't be limited to a Mercosur “full of problems”, the country must adopt “a more proactive attitude towards other regions in search of trade and investments”, said Uruguayan Economy minister Danilo Astori.

Addressing Wednesday a business seminar Mr. Astori emphasized that "we can't be hostages of a Mercosur full of problems. Uruguay must improve its overseas standing; we can't sit and wait for investors to come to the country".

The most liberal of the left wing coalition ruling Uruguay, Mr. Astori said the administration's targets are "economic and social stability" and promised to end with the budget deficit and considerably lower the country's IMF indebtness.

"We are working with a new concept of stability because this is a global social concept which can't be analyzed from an only perspective: we believe in economic and social stability which means inclusion instead of exclusion and expulsion", he added and went on to mention the basic "nine structural reforms" on which to build a new economy with more jobs and fairness.

Mr. Astori anticipated that the Uruguayan economy will continue recovering forecasting a 4% expansion in 2006, with exports growing 10% and imports 11%. However he admitted that Uruguay is still suffering the consequences of the spill over effects from the neighbouring Argentine 2001/02 economy melt down and default which forced Uruguay to reschedule its foreign debt. Uruguay's foreign debt is still almost equivalent to the country's 13,5 billion US dollars GDP.

The Economy minister also tried to brush aside some of the problems him and his team's policies are facing within the ruling coalition where they are being attacked as "continuation" of the previous liberal administrations. Crucial and controversial legislation such as a reciprocal investment protection agreement with United States; special statutes for union leaders; a fiscal reform; non eviction of factories and work places occupied by striking workers and denying authorization to Uruguayan Armed Forces to participate in US sponsored military exercises, remain stalled in Congress in spite of the coalition's ample majority.

Addressing businessmen he underlined "we don't feel we are the good guys in government, because supposedly there are bad guys. We belong to a coherent administration which gives us their full support and we fully support them. The government is only one and coherent".