
President Barack Obama has accused the government of Venezuela of threatening basic democratic values ahead of elections next year. He added that close relations with Iran and Cuba did not serve the interests of the Venezuelan people.

A two day Mercosur summit begins Monday in Montevideo with Foreign Affairs ministers meeting Monday and the presidents on Tuesday when the rotating chair will be passed from Uruguay to Argentina for the next six month.

Brazil’s International Affairs presidential advisor Marco Aurelio García admitted there is “disappointment” in Mercosur with the delay from the Paraguayan congress in approving the incorporation of Venezuela.

Uruguayan president Jose Mujica announced Mercosur is considering the modification of legislation so that Venezuela can definitively be incorporated as a full member to the South American trade block, which has been blocked for several years now by the Paraguayan Congress.

Argentine President Cristina Fernández began on Saturday before Congress her second term with a seventy minutes speech strongly focused on domestic issues with clear messages to labour, corporations, the financial sector, the Judiciary but also a “fine tuning” pledge to continue with the current national, popular, inclusive economic development model.

Argentina and Brazil agreed on Friday to “increase” in the “short term” regional trade in a shared strategy to address the consequences of the global crisis. The commitment was endorsed by Argentina’ Industry minister Debora Giorgi and her Brazilian counterpart Fernando Pimentel.

The IMF recommended Uruguay greater flexibility in the management of macroeconomic policy, ahead of unexpected changes in the international scenario.

The presidents of Venezuela, Colombia, Peru, Ecuador and Mexico, Hugo Chávez, Juan Manuel Santos, Ollanta Humala, Rafael Correa and Felipe Calderón have cancelled their trips to Buenos Aires and won’t attend President Cristina Fernández inauguration ceremony on Saturday.

Breaking away from tradition Argentine President Cristina Fernández will swear in her second term Cabinet at the Bicentennial Museum in Buenos Aires, a ceremony that by custom has been held in the White Room at Government House, Casa Rosada.

Uruguayan President José Mujica, 76, announced he would not be attending President Cristina Fernández inauguration ceremony on Saturday after his doctor recommended he should rest for the next few days. His wife, First Lady and Senator Lucía Topolansky will be attending instead.