OPPOSITION NATIONAL PARTY (BLANCOS) POISED FOR A

UNCLAS MONTEVIDEO 000232 SIPDIS SENSITIVE SIPDIS E.O. 12958: N/A TAGS: PGOV KDEM PINR UY SUBJECT: OPPOSITION NATIONAL PARTY (BLANCOS) POISED FOR A STRONG RUN IN 2009 REF: MONTEVIDEO 1061 SUMMARY -------------- ¶1. (SBU) SUMMARY: Political observers consider the opposition National Party (Blancos) well-positioned to compete against the governing in the 2009 national elections. The Blancos are polling a close second to the governing Frente Amplio, with 35% and 42% respectively in March. The poll results and voter angst over recent tax reforms bode well for the National Party's chances today, but the political landscape is likely to remain very fluid as the actual candidates are identified, internal party dynamics play out, and political parties and their factions tangle in the coming year. Two longtime Blanco rivals will vie for the Blanco nomination - Senator Jorge Larranaga, a self-styled gaucho, and Former President Luis Alberto Lacalle, an urbane internationalist. Upstart Carmelo Vidalin is also trying to make some noise, but will likely fall short. END SUMMARY. POLLS GIVE BLANCOS OPTISMISM -------------- ¶2. (SBU) The National Party (Blancos) is polling very well with 35% public support in an April 2008 national survey, a figure that has been trending upward. The governing Frente Amplio had fallen to only 42% approval in the March poll, reinforcing many observers' beliefs that the Blancos will be competitive in presidential elections at the end of 2009. This is a marked change from less than a year ago, when the Frente Amplio appeared unbeatable. Since then the government's party has been waning in the polls and the Blancos are making steady gains. The Blancos' leaders are publicly and privately very optimistic about the party's fortunes, but with more than a year before scheduled primary elections in June 2009, much remains to be seen. WHAT TO WATCH FOR... -------------- ¶3. (SBU) Party Unity: While it's clear that the Blancos are heading for a contested internal party election in June 2009, their public interaction will have a big impact on the electorate, especially independents or Frente Amplio swing voters, in the general election. Blancos are traditionally tough campaigners who have a history of undermining one another, and there is no love lost between the two main contenders, Larranaga and Lacalle. How they treat each other is likely to shape whether voters consider the National Party mature enough to win the election and run the country. For now, both party leaders have remained civil. Lacalle describes himself as "wiser and more humble" than in the past, while Larranaga has been keeping a low profile and has yet to officially toss his hat into the ring. ¶4. (SBU) Trends in Maldonado: The Department of Maldonado, traditionally a Blanco stronghold, has become a key swing-Department in recent elections. In 2004 the Frente Amplio carried the Department of Maldonado with 47%. The Blanco candidate took 45% and the Colorado 3%. However, in an April 2008 poll, respondents preferred the Blancos over the Frente Amplio 37% to 28%. With a fast-growing population (many moving in from other departments),politics in Maldonado are shifting and appear to reflect the national trends favoring the National Party of late. ¶5. (SBU) Frente Amplio's fortunes: Many middle class voters (a group that played a key role in the Frente Amplio's victory in 2004) have suffered under policies enacted by the current government, especially a controversial new tax reform and increased health insurance taxes. As the Frente Amplio balances the demands of its core constituency (working class, pensioners, and the poor),it risks alienating swing voters. In addition, persistent allegations of corruption among some members of the Frente Amplio government have also tainted a clean image the party worked to develop during the 2004 campaign. LARRANAGA - CURRENT BLANCO FRONT RUNNER -------------- ¶6. (SBU) Senator Jorge Larranaga is viewed inside and outside the party as the current front runner to head the Blanco ticket in 2009, although he has yet to officially announce his intention to run. With 48% of his party's support (according to a March 2008 poll) and longtime Presidential ambitions, there is little doubt he will seek the nomination. So far he has kept a low profile. There is significant bad blood between Larranaga and fellow Blanco, former President Lacalle. Larranaga heads the National Alianza faction of the Blancos, which he founded in 1999 with the purpose of removing Lacalle from office. He recently launched the Wilson Ferreira Aldunate think tank which political observers expect will work to shape the eventual National Party platform ahead of elections. ¶7. (SBU) Larranaga was born in 1956, is a lawyer, and former Mayor of Paysandu. He represents the center/left Wilsonista movement and is seen as former President Lacalle's primary competitor within the party. Larrranaga is generally viewed as young, hard working, and a strong leader who will try to attract Blanco Party votes which fled to the Frente Amplio in 2004 as well as disenchanted Frente Amplio supporters, especially from among the middle class. Larranaga was the Blanco candidate in 2004, but only carried 34% of the vote. (Complete bio provided septel). LACALLE - FORMER PRESIDENT SEEKS TO RETURN -------------- ¶8. (SBU) Former President Luis Alberto Lacalle announced in April 2008 that he is running for his old office. Lacalle heads the Herrerismo faction of the National Party, which espouses liberal economic policies such as free trade and privatization. He has promised to revise laws enacted by the Frente Amplio government, especially the unpopular tax reform law. A March 2008 poll showed Lacalle with 29% of his party's support. While he trails Larranaga in the polls today, he has a respectable following by Uruguayan political standards at this early date. ¶9. (SBU) Lacalle was President from 1990-1995, a period of relative economic prosperity both in Uruguay and the region. He uses the political slogan, "you live better with the Blancos," alluding to the positive feeling many Uruguayans have from the time of his presidency. However, his administration was also rocked by allegations of corruption, which led to the conviction and imprisonment of senior government officials. Lacalle ran for the Blanco nomination and lost to Larranaga in 2004. (Complete bio provided septel). VIDALIN - TRYING TO CREATE POLITICAL SPACE -------------- ¶10. (SBU) Carmelo Vidalin was a long-time member of Lacalle's Herrerismo faction, but left in February 2008 to run for president as an independent Blanco. Vidalin is a very popular two-term intendente (governor) of Durazno, a small Department in the interior. Vidalin is ineligible for reelection. While he brings a new name to the early race for the Blanco nomination, he has not developed a strong national following. His candidacy for president presents a chance for him to expand his support and perhaps land a key position if the Blancos win the election. Vidalin appeals to many of the same young and more centrist voters as Larranaga. Some observers believe he may draw votes away from Larranaga, thereby reinforcing the candidacy of his former leader, Lacalle. The March 2008 poll showed Vidalin with 11% of his party's support. (Complete bio provided septel). COMMENT -------------- ¶11. (SBU) COMMENT: The key to the Blancos' chances in 2009 will be to force a second round in the general election, which occurs if no party wins 50% of the vote. In a second round, Colorado voters will be much more likely to support the Blanco candidate over the Frente Amplio. Whether the eventual winner in a second round is a Blanco or from Frente Amplio, that government will have to contend with a divided congress, whose members are apportioned based on votes in the first round. Matthewman