MercoPress. South Atlantic News Agency

Incoming Argentine economy minister “thinks just like us”

New Economy Minister Carlos Fernandez

Argentina's incoming Economy Minister “thinks in the same terms as us” and will follow on “with government main guidelines”, said cabinet chief Alberto Fernandez who also confirmed that the controversial Secretary of Interior Trade, Guillermo Moreno remains in his post.

Martin Lousteau was sacked Thursday evening when he presented President Cristina Fernandez de Kirchner a plan to combat inflation which, together with the farmers protest, have become the greatest challenge for her administration Lousteau was replaced by Carlos Fernandez, a trusted ally of former president Nestor Kirchner, who was until Thursday head of the Internal Revenue Service and in the past has occupied several other posts in difficult moments on request from Mr. Kirchner. "He thinks in economics in the same terms as us and will go ahead with the main government guidelines", said Alberto Fernandez. "He will guarantee the course of action which President Cristina Kirchner has decided for the economy". Carlos Fernandez who is scheduled to be sworn in the job Friday, 19:00 hours in mid morning statements said "nothing should change; I'm fully committed to this economic policy and to the leadership of Kirchner". As to the reasons for his predecessor's exit Mr. Fernandez said "Lousteau, and his team decided on the sliding oilseed and grain export taxes on his own and which the rest of the government supported: But they generated a huge conflict both for him and for the administration, which is besides the fact we will continue to support his concepts on taxing". However what triggered the resignation was the anti inflation program presented by Lousteau and which the "President rejected pointblank" because it was based on cooling the economy. "Whoever belongs to this government that for the last five years has seen the economy grow at 10% annually, can't propose a cooling of the economy" emphasized Fernandez. As to the controversial Guillermo Moreno who is responsible for keeping prices and inflation under control and who helped in the downfall of Lousteau, Fernandez said he was confirmed but "with the same powers as before, no more, no less". Although market analysts were expecting an announcement on the issue, they were surprised by the name of Carlos Fernández, who besides being a loyal Kirchner man does not have a renowned reputation or standing. Actually markets were expecting some other more prominent name with international stature but this reflects, according to Argentine political analysts, the ongoing struggle inside the Kirchner cabinet. The hawks supported by Mr Kirchner such as the tough Moreno who threatens grocers, supermarkets and farmers with reprisals if prices increase, and Julio De Vido the "purse man" --with abundant funds from farm export duties-- and who is in charge of public works, (federal generosity in exchange for political submission to the Kirchners). Cristina Kirchner supports her successful campaign manager and cabinet chief Alberto Fernandez, described as a "dove", who is more political and inclined to dialogue and less aggressive than Mr Kirchner. Nevertheless he has been loosing ground systematically as a consequence of the farmers' conflict and could be the next victim. But whatever the balance inside the cabinet the Kirchners agree that the economy must keep growing at its current rate (even with inflation), and they will never forgive the farmers for challenging their power and exposing them to weaknesses (almost humiliation) when cities where suffering food shortages because of the three weeks road blocks. Stormy forecast for Argentina.