
Regular operations have gradually resumed at the main airports of Buenos Aires and in Montevideo’s Carrasco air terminal, where most flights had been cancelled since Sunday due to ash cloud generated from Chile's volcano eruption, authorities said.

Uruguayan president Jose Mujica tried to seduce German investors and business people during his first day visit to Germany which has been marked by the impact of the European crisis. On Tuesday he is scheduled to meet Chancellor Angela Merkel and President Christian Wulff.

Uruguayan president Jose Mujica currently visiting Germany said that relations with Argentine are very good and forecasted that President Cristina Fernandez will win he re-election bid next Sunday as he had anticipated two years ago.

Spain’s Abengoa has announced that it will construct a bio-ethanol plant in the department of Paysandu, Uruguay, for Alcoholes de Uruguay, or ALUR. The contract, which includes the construction of an adjoining power cogeneration plant, is worth 120 million dollars.

Argentina and Uruguay suspended flights at major airports Sunday due to dangerous ash from neighbouring Chile's Puyehue volcano, which has disrupted global travel since it erupted earlier this year.

Former Uruguayan president Tabare Vazquez (2005/2010) apologized on Thursday for his statements on a “was hypothesis” with Argentina in 2006 saying they had been ‘inopportune’ and announced he was retiring from public politics activities.

The governments of Uruguay and Argentina have decided to ignore the controversy born out of statements from former President Tabare Vazquez who said that during the Botnia-UPM pulp plant conflict, back in 2006/07, he did not discard a “war hypothesis” given the aggressive attitude of Argentina and for which he had requested support from the Bush administration.

Uruguay and Argentina approved this week conditions to begin dredging the River Plate Martin Garcia access channel, an ongoing dispute of over ten years that seriously constrained Uruguay’s ports development, according to reports in the Montevideo media.

The Uruguayan economy is forecasted to expand 5.5% this year generating 40.000 new jobs, and 4.5% in 2012, according to “Prospects and Tendencies” announced Thursday by the Economy Institute from the Economics Faculty.

Uruguay’s First Lady Lucia Topolansky described statements from former president Tabare Vazquez referred to a possible ‘war hypotheses’ with Argentina over the paper mill conflict as ‘absurd’ and recommended those words shouldn’t be considered more than a simple kids’ anecdote.