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Sunday, 12 July 2009 - Peru's Garcia names party insider prime minister | International |
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      My Profile    Top News Reuters top ten news stories delivered to your inbox each day. Subscribe You are here: Home > News > International > Article Home Business & Finance News U.S. Politics International Technology Entertainment Sports Lifestyle Oddly Enough Health Science Special Coverage Video Pictures Your View The Great Debate Blogs Weather Reader Feedback Do More With Reuters RSS Widgets Mobile Podcasts Newsletters Your View Make Reuters My Homepage Partner Services CareerBuilder Affiliate Network Professional Products Support (Customer Zone) Reuters Media Financial Products About Thomson Reuters Peru's Garcia names party insider prime minister Sat Jul 11, 2009 7:30pm EDT   Email | Print | Share | Reprints | Single Page [-] Text [+] By Marco Aquino and Terry Wade LIMA (Reuters) - Peruvian President Alan Garcia named a member of his pro-business ruling party as prime minister on Saturday after bowing to opposition pressure to shake up his Cabinet in the worst crisis of his term. Garcia picked Javier Velasquez, a member of the APRA party and the head of Congress, to take over leadership of his team of ministers at a time when the president's approval rating has plunged to 21 percent. He also retained Finance Minister Luis Carranza, a favorite of investors who is in the middle of rolling out a $3.2 billion stimulus program to help the economy to grow 3 percent this year. As prime minister, Velasquez will face growing calls from unions, indigenous groups and the poor for the government to increase social spending as unemployment rises and the economy slows from last year's 10 percent surge. Opposition parties have demanded Cabinet changes since last month when at least 34 people died in clashes between police and indigenous groups in the Amazon rain forest. Outgoing Prime Minister Yehude Simon was heavily criticized for botching negotiations with protesters, who were demanding the government strike down laws designed to open up their ancestral lands to foreign mining and oil companies. Garcia also replaced the ministers of defense, justice, agriculture and the interior after demonstrators blamed them in part for failing to avert the deadly clashes. A third of Peruvians live in poverty and critics say Garcia's agenda of pushing free-trade agreements and encouraging foreign investment in mines and energy projects has not lifted incomes enough. "The country wants order and social inclusion and I am sure the Cabinet that Velasquez leads will meet these objectives," Garcia said at the presidential palace. The opposition said that Garcia should have chosen an independent with a knack for building consensus among left-wing and right-wing parties in Peru's rocky political world. "This nomination is disappointing," said Carlos Tapia, speaker of the Nationalist Party, whose leftist leader, Ollanta Humala, is a top contender for the 2011 presidential race. Garcia cannot run in the next election. "We think it should have been somebody who was politically autonomous," Tapia said. In the cabinet shuffle, Mercedes Araoz, who as trade minister helped implement a free-trade pact with the United States, was named minister of production and industry. Martin Perez, a legislator from the conservative National Unity party, was named trade minister and Pedro Sanchez was retained as mines and energy minister. (Writing by Terry Wade; Editing by Paul Simao) © Thomson Reuters 2009 All rights reserved   Share: Del.icio.us Digg Mixx Yahoo! Facebook LinkedIn   Also on Reuters Obama says stimulus plan to kick in later this year Goldman Sachs profit bonanza could stoke anger Drug companies fight the tide, and may win More International News Obama: Africa aid must be matched by good governance   |  Video Attack ruled out in oil tank fire in Xinjiang Australia warns of risks to delay in China spy case Bosnia buries Srebrenica massacre victims Isolated Honduras hunkers down More International News... Editor's Choice Slideshow  A selection of our best photos from the past 24 hours.  Slideshow  Most Popular on Reuters Articles Video Attack ruled out in oil tank fire in Xinjiang Obama: Africa aid must be matched by good governance  |  Video Cheney told CIA to withhold information: report How dangerous is Lashkar-e-Taiba to the west? 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Obama addresses parliament in Ghana Ghanaian president welcomes Obama Calm returns to Xinjiang streets More talks for Honduras rivals Millions affected by China quake Obama arrives in Ghana Geithner: get tough on derivatives Bull gores man to death in Pamplona Pamplona bull runner dies Most Popular Videos RSS Feed We want to hear from you Join the Reuters Consumer Insight Panel and help us get to know you better Please take a moment to complete our survey Reuters.com:  Help and Contact Us  |  Advertise With Us  |  Mobile  |  Newsletters  |  RSS  |  Labs  |  Archive  |  Site Index  |  Video Index Thomson Reuters Corporate:  Copyright  |  Disclaimer  |  Privacy  |  Professional Products  |  Professional Products Support  |  About Thomson Reuters  |  Careers   International Editions: Africa  |  Arabic  |  Argentina  |  Brazil  |  Canada  |  China  |  France  |  Germany  |  India  |  Italy  |  Japan  |  Latin America  |  Mexico  |  Russia  |  Spain  |  United Kingdom  |  United States   Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. 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