Mercosur Presidents, together with Chilean, Mexican and Bolivian heads of State, expressed on Friday their will to help Argentina to obtain financial assistance from the International Credit Institutions. Argentina considers aid crucial to launch a new economical plan to take the country off from its worst-ever crisis.
During the summit in Buenos Aires, a joint statement reads “Mercosur is concerned on the current behaviour of the global financial system, which is one of the sources of instability among the region”. In addition, Latin American leaders asked the international community to contribute to take the region out of the crisis.
The list of assistants to the meeting in Buenos Aires included the host, Eduardo Duhalde, and Presidents of Brazil, Fernando Henrique Cardoso; of Paraguay, Luis Gonzalez Macchi; of Uruguay, Jorge Batlle; of Bolivia, Jorge Quiroga; and of Chile, Ricardo Lagos. The special guest was this time, the President of Mexico, Vicente Fox.
Founded 11 years ago, Mercosur enjoyed robust trade growth between it members Brazil, Argentina, Uruguay and Paraguay until three years ago, when Brazil devaluated its currency and Argentina’s worsening recession slowed commerce. Analysts say that to help economic integration, member countries, together with associated members: Chile and Bolivia, should synchronize macroeconomic targets, something which is not happening nowadays.
Potentially, Mercosur could be one of the most powerful blocs worldwide. However, lack of political and cultural integration, together with the endemic financial crisis of its major members, make success a target to reach in the future.
Hernan Etchaleco PRAVDA.Ru Argentina
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