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Home Market Research Markets

Uruguay heads to polls for presidential election and pension reform By Reuters

by TheAdviserMagazine
11 months ago
in Markets
Reading Time: 3 mins read
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Uruguay heads to polls for presidential election and pension reform By Reuters
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By Lucinda Elliott

MONTEVIDEO/TREINTA Y TRES (Reuters) -Voters in Uruguay, known for its beaches, legalized marijuana and stability, went to the polls on Sunday in an election race between moderates that contrasted with the polarized politics in many other Latin American countries.

The nation of 3.4 million was voting for its next president and lawmakers, with pollsters predicting a run-off will likely be needed in November. The country will also decide on a referendum on pension reform that would lower the retirement age by five years to 60 and another that would boost police powers to fight drug-related crime.

But unlike sharp right-left divides in Argentina, Brazil or Mexico, Uruguay’s political arena is relatively tension-free, with significant overlap between the major conservative and liberal coalitions taking some of the sting out of the result.

The vote in the small South American nation saw Broad Front center-left candidate Yamandu Orsi, the pre-election favorite, take on continuity contender Alvaro Delgado. Behind them was young, social media savvy conservative Andres Ojeda, who addressed reporters outside his local gym on election day. 

Maria Gonzalez, 61, was voting for the Broad Front because she said people were in “tremendous need” and that the current government had failed to address issues related to housing, education and healthcare. 

Polls showed Orsi in the lead, but indicated no presidential candidate would likely get more than 50% of the vote, meaning a second round run-off would be held on Nov. 24 between Sunday’s top two finishers.

Orsi said the Broad Front had arrived at the election “with more strength,” addressing journalists on Sunday morning at a polling station. “I’m from the neighborhood, I’m from this city and I feel increasingly proud to be Uruguayan.”

In Treinta y Tres, a rural region of eastern Uruguay that has traditionally voted conservative, 60-year-old farm worker Ramon Silveira was casting his ballot for Delgado. “I want the trend of the last five years to continue,” he said. 

While security was an area the ruling coalition could improve on, Silveira was confident that with more time in government, crime rates would come down. 

Ballot stations opened at 8 a.m. (1100 GMT) and close at 7:30 p.m. local time, with results expected two hours later.

There was bigger tension in two binding plebiscites, also on Sunday. One asked whether to overhaul Uruguay’s $22.5 billion private pension system, which has drawn criticism from politicians across the aisle who say it could hurt the economy. 

Laura Mesa, a 35-year-old cook was in favor: “We work all our lives. The retirement age should be shorter so we can enjoy it!” she said from a polling station in Treinta y Tres. 

Jesus Collazo, 23, was less convinced by the reform proposal: “I agree with some aspects like lowering the retirement age, but I keep thinking: What are they going to do to replace all this private pension money? Will they make us pay taxes?” 

Uruguayans will also vote on whether to remove constitutional curbs on nighttime police raids targeting private homes as a way to combat drug-related crime, a rising concern for voters. Both referendums require simple majorities to pass.

“We must take control of our safety,” Orsi told a campaign rally this week, pledging to be tough on crime. 

The ruling conservative coalition is struggling to defend its security record, but hopes successes on the economy – with both employment and real salaries now on the rise – may be enough to convince voters to choose continuity over change. 

“I’m convinced that all the work we’ve done and what we represent is going to turn out well,” Delgado said as polls opened on Sunday. 



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Tags: electionheadspensionpollspresidentialReformReutersUruguay
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