Uruguay's Pension Reform: A Clash of Economic Models Looms

Uruguayan pension reform, aiming to lower retirement age to 60, faces a referendum threat. Conservative candidate Alvaro Delgado warns it could destabilize the economy by scrapping private pensions for increased state payouts. Center-left challenger Yamandu Orsi also opposes tax hikes, focusing on spending cuts to address fiscal deficits.

Uruguay's pension reform plan, set for a referendum alongside the presidential election, proposes controversial changes that could disrupt the nation's economic stability. The reform seeks to lower the retirement age to 60, dismantle private pension schemes, and increase state payouts - a prospect that has stirred significant debate.

Conservative presidential candidate Alvaro Delgado emphasized the potential economic impact in an interview, stating the measure could 'blow up' Uruguay's economic model. Delgado, representing the current administration's continuity, plans to avoid new taxes, opting instead for spending cuts to address fiscal challenges.

Meanwhile, opposition candidate Yamandu Orsi, leading in the polls, shares concern over tax hikes. Both candidates focus on securing free-trade agreements, with Delgado advocating for deals with China, the EU, and exploring ties with the United States and Turkey.

(With inputs from agencies.)