Pope to hold talks over economic crisis

Pope Francis is reportedly preparing to convene crisis talks between representatives of the Argentine president, union bosses and business leaders, as the country slides into financial turmoil.

The meeting, which would be held at the Vatican, would involve the country’s Minister of Labour, Carlos Tomada, as well as the ­president of the powerful Argentine Industrial Union, among others, according to La Nacion newspaper.

The Pope is understood to be deeply concerned about the situation in Argentina, where inflation is perilously high, the peso has ­devalued sharply and the Government appears to be uncertain what to do.

Some commentators have compared the current situation to the months leading up to the financial collapse of 2002, which brought the country to its knees. Sources close to Francis told La Nacion that the intention of the meeting, thought to be scheduled for 19 March, was to signal unity and dialogue ahead of scheduled pay negotiations between unions and the Government.

There was no official confirmation of the meeting and a journalist on the newspaper Crónica, Alicia Barrios, said that she had ­spoken to Francis who told her he had nothing in his diary for that day.

However, the secretary general of the construction union, Uocra, Gerardo Martinez confirmed to La Nacion that he had been invited.

Last year, inflation in Argentina was around 28 per cent, according to independent analysts. Expensive subsidies keep energy and transport prices in check, while retailers last month agreed to a price freeze on a wide variety of products. Nonetheless the cost of staples has reduced living standards for many Argentines.

In January, the Government relaxed strict controls on the purchase of dollars, after the peso’s value plummeted 11 per cent, its most dramatic fall since the financial crisis of 2002. A thriving black market operates in the country, with prices for dollars 40 per cent more on the black market than the official rate.