Chavez - Sao Paulo Media Reaction

UNCLAS SAO PAULO 000632 SIPDIS STATE INR/R/MR; IIP/R/MR; WHA/PD DEPT PASS USTR USDOC 4322/MAC/OLAC/JAFEE E.O. 12958: N/A TAGS: KMDR OPRC OIIP ETRD XM XR BR SUBJECT: Chavez - Sao Paulo Media Reaction Title- Chavez' second defeat Main editorial in center-right O Estado de S.Paulo (11-26) states: "The regional elections held on Sunday in Venezuela pushed t 'chavismo' to the outskirts of the country and defeated the myth that the poor are the pledged voters of the caudillo.... The most concrete effect of the rejection to Chavez-whose 'great accomplishments,' which influenced the vote, include a shortage of staple goods, 30%-inflation and crime running rampant, especially in Caracas-is the strengthening of the resistance to his plans to perpetuate himself in power.... The disfigured opposition of years past has rebuilt itself and has promised to challenge [Chavez] in a united way during the 2009 congressional elections, public opinion seems reinvigorated-and the source of power that exuded from oil at more than USD100.00 has vanished." Title- Elections show erosion of Chavez' popularity Editorial in business-oriented Valor Econtmico (11-26) says: "The state and municipal elections last Sunday gave [Chavez] an uncontested victory based on the number of votes his allies obtained and on the number of states where they continued in power.... [But] the opposition once more galvanized the support of part of the middle class that opposes Chavez, but what is significant is that it deteriorated Chavez' traditional support base.... Chavez' political power tends to erode even more because the good days of absurd oil revenues are over.... Chavez has not given up and may once more try to change the Constitution in order to get reelected.... Now that the opposition is more engaged, the president will have two options. He can either work with [the opposition] or become more radical, as has been his style. If he chooses the last option, the consequences are unpredictable." White