MONTEVIDEO, Uruguay (AP) — Yamandú Orsi, a charismatic former mayor and history teacher with leftist leanings, officially assumed office as Uruguay’s new president on Saturday. Leading a government committed to bolstering the social safety net and reversing years of economic stagnation, Orsi’s inauguration signifies the return of Uruguay’s Broad Front. This center-left coalition, comprising moderates, communists, and staunch trade unionists, reclaimed power after a five-year hiatus under the conservative leadership of outgoing President Luis Lacalle Pou.
Amid cheers from the crowd, Orsi took the presidential oath before Congress in Montevideo on Saturday, with thousands of supporters gathered outside watching the ceremony on large screens in the city’s main square.
A Civilized Transition
Orsi’s ascension follows a notably civil electoral race three months prior, where two moderate candidates competed, offering a reprieve from the region’s polarized political landscape. In his inaugural speech, Orsi addressed the erosion of democratic norms in Latin America, cautioning against exclusionary rhetoric and distrust in traditional politics that have fueled a rightward shift in the region.
“We must value our democratic foundation at a time when divisive ideologies and skepticism towards established politics are on the rise,” Orsi emphasized in his address to a diverse audience of domestic and foreign dignitaries at Montevideo’s legislative palace.
He stressed the importance of maintaining a spirit of healthy competition without descending into hostility, advocating for a departure from cynicism in public discourse.
The evening before his inauguration, Orsi shared a meal with like-minded leaders from the region, such as Brazil’s President Luiz Inácio Lula da Silva, Colombia’s Gustavo Petro, and Chile’s Gabriel Boric. This gathering solidified Orsi’s place among a cadre of left-wing allies grappling with social inequality and economic challenges in their respective countries.
A Return to Progressive Policies
For many Uruguayans, Orsi symbolizes a return to the Broad Front’s legacy, which governed from 2005 to 2020, overseeing a period of economic prosperity, poverty reduction, and groundbreaking social reforms. During its tenure, the coalition championed progressive initiatives, including the legalization of abortion, same-sex marriage, and recreational marijuana, earning international recognition for its forward-thinking policies.
However, emerging issues such as income inequality and rising crime paved the way for Lacalle Pou’s center-right administration in 2020, promising reforms to address bloated government structures.
Following a wave of discontent with Lacalle Pou’s government, propelled by concerns over persistent challenges, Orsi’s cautious campaign resonated with voters seeking a balance between addressing leftist priorities and promoting economic growth.
Navigating a Complex Landscape
Tasked with steering Uruguay’s 3.5 million citizens toward a path of sustainable growth, Orsi faces the delicate challenge of addressing demands from his more radical left-wing supporters while fostering an environment conducive to economic development.
His vision for Uruguay
With a coalition marked by discord, experts suggest that many of Orsi’s stances will only come into focus post his assumption of office, when he is compelled to confront challenging policy decisions. A cautious “wait-and-see approach” is being adopted by the business community, as they await clarity on whether Orsi will steer the ship or if his more assertive leftist faction will take the reins, articulated Uruguayan economist Arturo C. Porzecanski, a global fellow at the Woodrow Wilson International Center for Scholars. Porzecanski warned that failure on Orsi’s part to prevail and the enactment of regressive measures would cast a shadow on the economic prospects for the upcoming years.
The stringent fiscal policy poses hurdles in meeting the expectations of union members who championed a contentious referendum calling for pension increases and the reversal of the former government’s decision to raise the legal retirement age from 60 to 65. Orsi, recognizing the uphill task ahead, emphasized the importance of fostering dialogue, extending an olive branch, and demonstrating an understanding of the diverse perspectives within the community.
Last autumn, Uruguayans rejected the proposed pension reforms, with many lauding the outcome as a rare display of rationality in rebuffing financially unsustainable populism that has plagued the region. Nonetheless, union leaders, backed by individuals like Orsi’s Communist labor minister, persist in pushing their agenda, thereby challenging Uruguay’s image as an attractive destination for investors. Labor Minister Juan Castillo expressed concerns about the state of labor relations, especially in light of a recent mass strike called by powerful trade unions, and the closure of operations by multinational Japanese auto-parts manufacturer Yazaki in Uruguay due to high labor and production costs.
___DeBre reported from Buenos Aires, Argentina. Associated Press writer Nayara Batschke contributed to this report from Sao Paulo.
