Riots stun Argentine Government

A massive clean-up operation has begun

Argentina's new caretaker government is meeting to decide its response after violence returned to the streets of the capital, a week after riots forced the previous administration from power.

The interim President, Rodriguez Saa, cancelled his appointments to hold an emergency cabinet meeting after top adviser Carlos Grosso, targeted in the protests against alleged political corruption, stepped down.

On his way into the session, Foreign Minister Jose Vernet said: "I understand the people's indignation, but these are very general accusations."

Twelve policemen were injured and 33 people were arrested as protesters ransacked shops, banks and a McDonalds restaurant.

Protesters forced their way into the Congress building

Police used tear gas and rubber bullets to disperse the demonstrators, some of whom set fire to railway carriages and broke into the Congress building, smashing furniture and burning curtains.

Skirmishes reportedly continued on Saturday morning as the authorities mounted a massive clean-up operation, scrubbing anti-government grafitti from the walls of the presidential palace.

The night's violence flared at the edges of a large, noisy rally in the Plaza de Mayo square.

We want a new political system without corruption - and they go and name all these corrupt politicians to the new government

Protester Diego Fumagalli

Demonstrators bashed saucepans and drums in anger at the appointment of presidential chief of staff Carlos Grosso and other politicians tainted by allegations of corruption.

Perceived foul play during Mr Grosso's stint as Mayor of Buenos Aires under former President Carlos Menem had made him the least popular member of the caretaker administration appointed a week ago.

Cash curbs

Protesters also railed at limits on cash withdrawals of more than 1,000 pesos ($1,000) a months from banks, a policy which the new administration eased but did not abandon on Friday.

Employment minister Oraldo Britos said the banks did not have sufficient funds to ease the current restrictions.

With continued fears that the currency will eventually be devalued or that the government will seize money held in banks, many account holders fear they will lose their savings.

"I put my money in the bank for them to look after it - not to be stolen," read one protester's banner.

Argentina's economic woes

Public foreign debts of $132bn

Unemployment at 18%

Economy in recession for four years

Savers only allowed to withdraw $1,000 a month in cash

2,000 people drop below poverty line each day

Pensions to 1.4m retirees delayed

The interim Peronist government of President Adolfo Rodriguez Saa, who came to office after violent protests left 27 dead and forced the resignation of former president Fernando de la Rua, has announced new measures to control the economic crisis.

He has suspended repayments on the country's $132bn debt, announced plans to create one million jobs and promised to introduce a new currency, the Argentino, in the hope of boosting consumer-spending.

'Populist' solution

Some analysts say the new populist government is searching for quick solutions to placate a population which has been plunged from a relatively wealthy society into economic chaos.

The BBC's Daniel Schweimler, in Buenos Aires, says the patience of many Argentines with their political leaders has now worn very thin.

Lawyer Diego Fumagalli, 45, protesting at the Plaza de Mayo, said the new administration had misread last week's unrest.

"The message was that we want a new political system without corruption, and then they go and name all these corrupt politicians to the new government," he said.