Peronists close in on de la Rua

Buenos Aires - Argentina's president, preparing new economic measures and cabinet changes after losing mid-term elections, faced…

Buenos Aires - Argentina's president, preparing new economic measures and cabinet changes after losing mid-term elections, faced calls yesterday from opposition victors and allies to get his government in order.

Sunday's vote, which saw opposition Peronists become the biggest party in the Senate and lower house, highlighted the weakness of President Fernando de la Rua's coalition, split over austerity measures amid a four-year economic stagnation.

"The first thing he has to do is rebuild the political powers that brought him to power," Mr Eduardo Duhalde, a leading Peronist who trammeled the ruling Alliance in the Senate race for Buenos Aires province, told La Nacion newspaper.

Mr De la Rua, criticised for flying to Spain for a cultural event the day after the election defeat, has promised to persevere with public spending cuts to rescue the indebted economy. He has said the Economy Minister, Mr Domingo Cavallo, the lynchpin of those unpopular plans, would stay in his Cabinet.