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Subject

Factional pressures within the governing coalition.

Significance

With the electoral cycle complete, President Tabare Vazquez is finding that advancing his legislative agenda is not as straightforward as he had expected. Vazquez had anticipated an efficient government, in contrast to that of his predecessor Jose Mujica, which was characterised by much deliberation and little action. However, the complexities of his Frente Amplio (FA) coalition do not facilitate a strategy of intense activity.

Impacts

FA pressures will come to a head over a more austere budget due to be presented by August 31.

If cellulose is discounted, there are few bright spots for growth this year.

Reform progress may be stymied, but political stability is not at risk.

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