By Thomas Catan in Buenos Aires Published: March 18 2001 22:08GMT | Last Updated: March 19 2001 03:26GMT Fernando de la Rza, Argentina's president, on Sunday night said he would form a government of national unity after a political storm over new austerity measures split his coalition. In a televised address he also said he would ask Congress for emergency powers to press ahead with economic reforms aimed at pulling the country out of its 32-month recession. Domingo Cavallo, the former economy minister known for taming hyperinflation in 1991, confirmed that he would join the government. Mr De la Rza said: "I have received responsible and patriotic responses from the political spectrum for a great historic agreement in benefit of the people." He said the government's composition would be unveiled shortly. He was expected to meet the opposition Peronist party with a view to its joining the government. The administration could also include the leftwing Frepaso party which stormed out of the coalition on Friday over measures imposed by Ricardo Lspez Murphy, the new economy minister, to bring finances back into line with International Monetary Fund targets. The recession has raised questions over whether the country will be able to service its $124bn (#86bn) foreign debt. To allay those fears, the IMF cobbled together a $40bn package of public and private sector financing in December. The budget cuts - nearly $2bn this year and nearly $2.5bn for 2002 - triggered the resignation of three cabinet ministers and six officials, mainly from Frepaso. The developments threw into question the future of Mr Lspez Murphy just two weeks after he was appointed. However, officials close to the minister said he was "calm" and would remain in his post. _______________________________________________ CrashList website: http://website.lineone.net/~resource_base
