Uruguay ushers in first conservative government in 15 years

Uruguay has ushered in a conservative government after 15 years of left-wing leadership under the Broad Front coalition

The center-right National Party’s Luis Lacalle Pou was inaugurated on Sunday after winning by a runoff election in November against the Broad Front’s Daniel Martinez by about 37,000 votes.

While the Broad Front presided over one of the longest economic growth cycles in the country’s history, growth stalled in recent years.

The sluggish economy, combined with a high cost of living and an increasing homicide rate contributed to Uruguayans’ swerve to the right, analysts say.

The number of homicides increased by 46 percent in 2018. While the country’s official rate of 11.8 percent per 100,000 was relatively low compared with other countries in the region, “for Uruguayan standards, it’s high and many voters believed tougher measures were in order to stop gang and drug-related crimes from spreading,” said political analyst Oscar Bottinelli.

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Uruguay has also become one of the most expensive countries in Latin America to live.

“Uruguayans pay 30 percent more for a litre of gasoline, then Argentines, Brazilians and Chileans,” said economist Ignacio Munyo.

Pou, a 46-year old lawyer and son of former president Luis Alberto Lacalle (1990-1995), has the support of five center-right parties, including his National Party, as well as a majority in Congress.

His coalition wants to cut government spending and liberalize the energy sector, in order to tackle the country’s fiscal deficit.

Last year, the deficit increased to 4.8 percent of the gross domestic product, making it the highest deficit in 30 years.

“Pou plans to make most changes during his first year as president and has included them all in a 400-article bill,” said political analyst Daniel Chasquetti.

But his proposals, without angering trade unions, middle-class Uruguayans and the opposition, may prove to be an uphill battle.

“Uruguayans are very divided,” said Ximena Abitante, a teacher in Montevideo.

“Almost half of the country still supports the Broad Front,” he told Journalist