In Uruguay, elections are dominated by pensions and crime | The mighty 790 KFGO

By Lucinda Elliott

MONTEVIDEO (Reuters) – In Uruguay's capital Montevideo and around this South American country of 3.4 million people, voters are preparing for Sunday's election, which will be overshadowed by a referendum on pensions the same day and fears about crime.

Uruguayans will vote for the next president, vice president and members of parliament, with polls showing a runoff is likely to be necessary. If no presidential candidate receives more than 50% of the vote on Sunday, a second round of voting will take place on November 24th.

Polling stations open at 7:30 a.m. (10:30 GMT) on Sunday. Results are expected on site after 9:30 p.m. Polls show center-left Broad Front candidate Yamandu Orsi leading in the presidential election, with ruling conservative coalition candidate Alvaro Delgado in second place.

Uruguay's race between two centrist candidates bucks the Latin American trend of major political change. Argentina picked third place as an underdog last year, with libertarian President Javier Milei and Mexico's first female president, Claudia Sheinbaum, taking office in October.

“This country needs a general change,” Vivian Sanabria, 64, told Reuters, adding that she planned to vote for Orsi, citing issues such as education, support for the elderly and health care.

Orsi, a 57-year-old former mayor, has promised to focus on economic growth and keeping taxes low with a moderate “modern-left” program. His rival, 55-year-old Delgado, comes from the current government and ensures stability.

“I will vote for Alvaro Delgado. He is the one who gives me the most confidence,” said Martin Mendez, 40. “He will continue to achieve the good results that this administration has achieved.”

But continuity is a double-edged sword. Voters were generally happy with the economy under the current Conservative government, despite budget deficits that need to be addressed. But crime and fears of drug gangs have become key concerns for voters.

“We fear for our teenagers when they ride the bus to school early in the morning,” said 37-year-old Sol Gonzalez, who said she often hears gunshots at night.

Cruel turf wars between small drug-dealing clans on the outskirts of the city and violent crime have shocked the relatively quiet country unaccustomed to gang violence.

Delgado and Orsi also have to defend themselves against third-place challenger Andres Ojeda (40) with social media knowledge. Should Delgado make it to the second round, Ojeda has pledged to support him, which will likely lead to a close runoff.

PENSION REFERENDUM

The vote hinges on a referendum, also taking place on Sunday, aimed at reforming Uruguay's $22.5 billion private pension system, lowering the retirement age to 60 and increasing payouts. The demerger plan is unsettling politicians and investors who say it could have far-reaching effects on the small $77 billion economy that relies on agricultural exports.

While economists and top candidates warn it could cripple government finances and trigger higher taxes, many Uruguayans suffering from high prices are advocating for earlier retirement.

In the downtown Montevideo neighborhood of Larranaga, cafeteria chef Camilo Rodriguez, 47, was worried about his retirement as he prepared breaded cuts of beef, known as milanesas, for lunch customers.

Rodriguez was still debating his election as president but said he was ready to vote for pension reform in the hope of reversing “depraved” financial conditions for older Uruguayans.

“It takes serious creativity to imagine how you're going to live off your pension in the future,” Rodriguez said. Pensioners receive about $450 (18,840 pesos) a month as a minimum state pension and the reform would allow for more generous payouts, he added.

Polls suggest support for the measure has fallen slightly. In October, 47% said they planned to support the measure, compared with 53% in September, data from polling firm Factum shows. The referendum requires a simple majority and is binding.

There is also a referendum on allowing nighttime police raids on homes.

Rising violence in Uruguay is being fueled by changing cocaine smuggling routes, and the ruling conservative coalition is struggling to defend its security record.

“The security problem is not really working, a lot of promises have not been kept,” said Maria del Carmen Cotelo, 66, signaling that she would vote for change. “We have to keep going.”

(Reporting by Lucinda Elliott and Alejandro Obaldia in Montevideo; Editing by Adam Jourdan and Rod Nickel)