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Weekly Report - 25 August 2011 (WR-11-34)

URUGUAY: Mujica seeks to regain authority with land tax

President José Mujica scored a notable triumph this week. The government sent a bill to congress on 22 August to create a tax on owners of more than 2,000 hectares of land. The whole cabinet signed up to the bill, which had been the cause of a public disagreement between Mujica and his Vice-President Danilo Astori, who argued, along with three key ministers, that it changed the rules of the game and risked deterring investment. The biggest test for Mujica, however, is yet to come. Having rallied his government behind the bill, Mujica now needs to secure the unity of his party, the left-wing Frente Amplio (FA) coalition, in congress. There are still bitter recriminations within the coalition over the failure to stand united to strike down the country’s amnesty law last May [WR-11-21].

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