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LatinNews Regional Monitor: Brazil & Southern Cone - 23 January 2017

Uruguay’s Mujica urges fiscal restraint

Development: On 21 January ,Uruguay’s former president (2010-2015) and incumbent senator, José Mujica, called for “prudence” in discussions about the budget this year in the face of global economic uncertainty.

Significance: Mujica’s call is significant because he is one of the figureheads of the Movimiento de Participación Popular (MPP), the main party on the more radical wing of the ruling left-wing Frente Amplio (FA) coalition. Since President Tabaré Vázquez took office in March 2015 the MPP has repeatedly clashed with his economy & finance minister, Danilo Astori, a leading light on the more moderate wing of the FA, who has championed fiscal austerity. The MPP had called for fiscal purse strings to be loosened and supported strikes by the country’s main trade union, Plenario Intersindical de Trabajadores–Convención Nacional de Trabajadores (PIT-CNT), in the opening year of the new Vázquez administration. Mujica, however, while he acknowledged that pressure would be brought to bear on the government by different trade unions, and some FA parties, argued that the government should be cautious.

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