Abstract
Subject Military moves and economic gloom. Significance The government has faced a political crisis within the military establishment, connected to an honour tribunal related to crimes committed during the 1973-85 dictatorship. President Tabare Vazquez was forced to dismiss seven army generals in the course of a month. The issue coincided with troubling economic data and deteriorating public accounts that represent a threat for Uruguay’s investment-grade rating, at a time when the governing Frente Amplio (FA) appears to be on the back foot in advance of the October general elections. Impacts The human rights issue united the FA but will have limited electoral traction amid more immediate economic concerns. The fiscal deficit will not allow for stimulus spending. An opposition alliance looks likely to be able to unseat the FA in October, at the very least taking its congressional majority.
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