Significance: Uruguay's economic policy has become the main topic of discussion within the ruling left-wing Frente Amplio (FA) coalition. During the 2009 election campaign, the FA promised to reduce the general VAT rate by two percentage points to 20%, from 22%. However, radical factions within the FA demand more action to promote income redistribution, and argue for tax increases on the productive sectors of the economy as a means to achieve this. Conversely, moderates in the FA, including the influential economy minister, Fernando Lorenzo, are staunchly opposed to such changes, amid worries that they could hamper the economy's solid performance.
Key points:
End of preview - This article contains approximately 355 words.
Subscribers: Log in now to read the full article
Not a Subscriber?
Choose from one of the following options
