Weekly Report - 24 February 2011 (WR-11-08)

Radicals and moderates are engaged in a fierce tug of war within the ruling left-wing Frente Amplio (FA). Almost one year after he took office, President José Mujica faces the threat of a rift in the FA: the radical wing of the coalition is demanding that Uruguay's strong economic growth result in greater redistribution of wealth; moderates, including Mujica, argue that Uruguay risks missing out on a once in a lifetime chance to push towards developed nation status over the next five years if, as the radicals propose, it changes the rules of the game by increasing taxes on foreign investors.