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American Morning

Duhalde Takes Argentine Reigns

Aired January 02, 2002 - 09:34   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
LEON HARRIS, CNN ANCHOR: Well, now to the president of Argentina. This morning the country has a new leader, though actually, he's the country's fifth new leader in two weeks.

As CNN's Liz George explains now, the latest president is vowing that he is there to stay.

(BEGIN VIDEOTAPE)

LIZ GEORGE, CNN CORRESPONDENT (voice-over): There will be no (UNINTELLIGIBLE) period for Argentina's 60-year-old president, Eduardo Duhalde. As soon as his appointment was announced, he rolled up his sleeves and went to work, outlining his government's agenda.

EDUARDO DUHALDE, PRESIDENT OF ARGENTINA (through translator): My commitment from today is to finish with an economic model that has brought desperation to the vast majority of our people, and to establish the basis of a new model that is able to recover the production, jobs, the internal market and promote a more just distribution of wealth.

GEORGE: In his inauguration speech, Duhalde said he plans to form a government of national unity to deal with the overwhelming economic and social chaos. He also said Argentina couldn't hope to honor its $132 billion debt until the economy started growing again.

The new president plans to announce the new economic program on Friday. His efforts will be anxiously watched by his supporters in the Perones party, as well as the electorate, which has grown increasingly violent in its protests against the prolonged economic crisis.

Looting and riots last month forced the resignations of Presidents Fernando De la Rua and Adolpho Rodriquez Saa.

NESTOR MONTECHIARI, ARGENTINIAN PROTESTOR (through translator): I think Duhalde is the only person who permits us to live in freedom, peace and jobs.

GEORGE: Having ended 2001 leaderless and penniless, the Argentinian people can only hope that things can get better. But, after four years of recession and with inflation numbers running into four digits and unemployment at nearly 20 percent, the country can also boast of triggering the largest debt default in history. JUSTIN URQUHART STEWART, SEVEN INVESTMENT MANAGEMENT: Well, it's a great shame for the country and also still extremely worrying for the rest of us as well. Because you only go back two weeks ago, we thought we had sort of packaged it up and looks as though there wasn't going to be contagion, and it looks as though they could sort of resolve the situation. And the IMF and America and everyone was going to support them. And then, we're back at the boat house again. So, a political crisis like this, the market does not need on the first day of trading in a new year.

GEORGE: The 36 million Argentinians had nothing to celebrate this year, as the government's deeply unpopular limits on cash withdrawals still holds. And President Duhalde looks likely to continue with the planned introduction of a third currency, the argentino.

The internal power struggles within the Perones party could still undermine the efforts of the new president. But taking over a battered economy, Duhalde has no choice but to act quickly and decisively.

Liz George, CNN, London.

(END VIDEOTAPE)

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