Tabare Vazquez has made history by becoming the first left-wing candidate to become president of Uruguay.
With just under 100% of the votes counted, the 64-year old doctor had 50.6% of the vote, passing the more than 50% plus one vote needed to win in the first round of voting. Vazquez’ Broad Front Coalition, including socialists, communists, social democrats, also secured majorities in both houses of Congress.
Vazquez, who will be sworn in on March 1 to a five-year term told supporters of the importance of distributing wealth and social justice: “We will begin to work in the morning on the political transition because there is no time to lose,” he said.
While some analysts will worry about Uruguay’s lurch to the left, Walter Molano, partner at BCP Securities says Vazquez’ election reflected the country’s growing political maturity. “It showed that the Uruguayan electorate was sophisticated enough to look beyond the colour of the party banner, and examine the quality of the candidates and the details of their platforms,” he says.
In any case, according to Jose Barrionuevo, director of emerging markets strategy at Barclays Capital, incoming Finance Minister Danilo Astori has pledged to follow a path of fiscal discipline and low inflation. He also plans to start negotiating with the IMF about continuing their agreement, which is set to expire next March.
"Overall, the initial steps will aim at reassuring financial markets that the broad thrust of sound fiscal policies will continue and that changes can take place within a framework of fiscal responsibility," says Barrionuevo.
Vazquez’ election breaks 170 years of tradition in Uruguay, which has been ruled by the Colorados and Blancos parties during that time.