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Kirchner sworn in as Argentina's president, takes to Casa Rosada balcony

Newly-inaugurated President Nestor Kirchner, participates in the ceremony of investiture of his cabinet in the Congress, on Sunday, 25 May 2003, in Buenos Aires. AFP PHOTO/Ali BURAFI

BUENOS AIRES (AFP) ­ Newly sworn in President Nestor Kirchner vowed Sunday to restore confidence in Argentina's economy, to fight corruption and overhaul a military tainted by association with earlier brutal regimes.

Kirchner, 53, faces an uphill battle to end Argentina's prolonged economic crisis and pay off its crippling foreign debt, which has caused widespread unemployment and social unrest.

In his inaugural address, Kirchner said repaying the debt would take a back seat to improving the lives of Argentina's 36 million people.

"We are not fulfilling our debt commitments," he said. "But we cannot pay at the cost of delaying eduction and the good health of of Argentina's children."

He also declared that the state would play a central role in the nation's development and the promotion of what he called "national capitalism."

Late Sunday, Kirchner made his first appearance on the balcony of the presidential Casa Rosada, famed for the earlier appearances of president Juan Peron and his legendary wife Evita.

At exactly 6:36 pm (2136 GMT) Kirchner stepped out onto the balcony overlooking the famous May Square where thousands gathered to cheer in his presidency. Next to him was his wife Cristina Fernandez, who is also a senator. She stood next to their 13-year-old daughter Florencia.

On Kirchner's other side stood Vice President Daniel Scioli, who took the new president's hand raising it in a triumphant gesture.

Some of the Peronist supporters chanted "Argentina, Argentina," others cried "Lupo, Lupo" ­ Kirchner's nickname since he was a boy ­ while still others lauded the new charismatic first lady, chanting "Cristina, Cristina."

A progressive member of the Peronist party, Kirchner became president-elect May 14 when former president Carlos Menem, a staunch free-marketeer trailing in the polls, dropped out of the country's first presidential runoff.

He is Argentina's first elected leader since Fernando de la Rua resigned in December 2001 as the country's economic crisis deepened.

Thirteen regional leaders attended the inauguration, including Cuba's Fidel Castro and Venezuela's Hugo Chavez.
One of the other presidential guests of honor Brazil's Luiz Inacio Lula da Silva later flew back to Brazil accompanied on his jet by outgoing Argentine president Eduardo Duhalde, and his wife, who had spent a year and three turbulent months at the Argentine helm.

The new president's ambitious plans include sweeping military reform, which, according to Defense Minister Jose Pampuro, call for "a renovation of the entire military structure," something never before attempted in Argentine history.
Kirchner planned to dismiss 27 full generals, 13 admirals and 12 brigadier generals, replacing some them of them with younger officers not tarnished with association with past military regimes.

Along with Economy Minister Roberto Lavagna and the rest of the government, Kirchner must quickly work to restore faith with lending bodies such as the International Monetary Fund, amid indications the honeymoon period is already over.

Lavagna said he had spoken with Kirchner about quickly starting talks with the IMF on a new arrangement, as Argentina's foreign debt has spiraled now to almost 136 billion dollars.

A regional powerhouse, Argentina once prided itself on being one of the world's richest countries with the largest middle class in Latin America.

But as companies went bankrupt and the currency devalued 66 percent, with Argentina's 36 million population seeing their incomes shrink and unemployment rise.

Many people formerly considered middle class are now among the more than 21 million who live below the poverty threshold.

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