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Montevideo, the 26.07.2003

Current developments.

The political system of Uruguay applied in the last 10 to 15 years as the most stable in Latin America. But now harder times threaten. The center right-wing coalition under president Jorge Batlle possesses a broad majority, but the economic policy conforming to market trends of "Switzerland Latin America" pushes since beginning of the yearly increasingly on contradiction. Principal debt carries the crisis over-sloshing from Argentina, which intensified for four years the persisting recession strongly. Meanwhile one counts on a minus from 6 to 7 per cent with the economic growth for 2002.
In April 2002 100,000 humans in Montevideo met, in order to protest against the "neoliberale" policy of the government, in June paralyzed a 24-stuendiger general strike the country. For the first time since 1984, when the military government at that time before the collapse stood, trade unions and enterprises pulled on the same strand: They demand dirigistische measures for the protection of the social possession conditions, the national industry and measures for the setting in motion of the economic situation in motion. Also they resist tax increases and privatisations.
President Batlle at the beginning of June the nerves went through: It called the Argentinier in an interview of Bloomberg TV a "heap of gauner ­ from first to the latter" and did not save not at bad words over of Argentina president Eduardo Duhalde. However Batlle had believed, the microphone was already switched off. On a kind Canossa course after Buenos Aires it apologized with Duhalde and the Argentine people under tears.
At the end of of 2001 was stopped the export to Argentina, beside Brazil the most important trade partner, nearly completely. Also the financial entwinements with the neighbour affected themselves now negatively. Many Argentinier fell back to their assets in Uruguay, after the government in Buenos Aires let the savings accounts close. Up to 1.5 billion US dollar flowed off in the first two months of the yearly 2002 from the uruguayischen bank system. In order to meet the devaluation of the Argentine currency, the uruguayische government decided shortening the public expenditures. But it did not help anything.
On 20 June Uruguay had to release the course of the national currency, long with a certain range was bound ten years for which to the US dollar. The peso fell immediately after it by 15 per cent, added then however again easily.
At the end of June granted the IWF Uruguay a new credit over 1.5 billion dollar, in order to overcome the recession and to contain the economic crisis in South America. Together with one in March assigned credit the total loan thereby already amounts to 2.28 billion dollar.
With regard to foreign policy a controversy with Cuba provided for attention: The UN human right commission in Geneva had accepted a resolution with limited majority, brought in from Uruguay, in which Havanna was requested to grant to the own citizens political fundamental rights and to leave a UN special correspondent in the country. Of Cuba head of state Fidel Castro insulted thereupon of Uruguay presidents Batlle as "verkommenen Judas" and "lakaien of the USA". Batlle broke the relations off with Cuba and requested the Cuban Ambassador in Montevideo to leave the country.


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