The reform program of Argentina's ultra-liberal economic president Javier Millay has been supported by the governors of the South American country's provinces, reported DPA, quoted by BTA.
The head of state and 18 governors signed the so-called May Pact (Pacto de Mayo) at an Independence Day ceremony in San Miguel de Tucuman in the northwestern part of the country.
Pledges in the agreement include protecting private property, balancing the budget, reducing government spending, labor market reform and opening Argentina to free world trade.
Miley has recently clashed with several governors over issues involving the distribution of federal funds. Millay said that despite their differences, the participants signed the pact "to heed the call of the Argentine people for a profound change in direction". He described the pact as a "symbol of a turning point".
The president plans to make a fundamental change in Argentina. In late June, Congress (Argentina's bicameral parliament) approved his controversial reform package, which includes the privatization of several state-owned companies, tax breaks for large investors, and reforms to the labor market and tax system. The president would also be given broad legislative powers and would be able to rule by executive order for a year, bypassing Congress.
Argentina is in the midst of a severe economic crisis. The once rich country suffers from a bloated state apparatus, low industrial productivity and a huge gray sector that deprives the state of tax revenue.
Miley now plans to get South America's second-largest economy back "on track" with radical austerity policies. The government has already cut thousands of jobs in the public sector, reduced subsidies and liquidated social programs, DPA notes.