Brazil's Cardoso boosted as ally wins state vote
Reuters, Sunday, October 25, 1998 at 17:45
(Updates with preliminary results, comment)
By Jeremy Smith
RIO DE JANEIRO, Oct 25 (Reuters) - An ally of Brazil's
President Fernando Henrique Cardoso won the governor's race in
the key state of Sao Paulo on Sunday, boosting Cardoso in his
battle to shore up the economy, preliminary results showed.
But Cardoso supporters lost in other important states, such
as Rio de Janeiro and Minas Gerais, and analysts said the
victors there could prove to be political thorns in his side.
Cardoso, reelected as president on Oct. 4, was keen to
secure an ally in Sao Paulo as he prepares for political
tussles that include an international loan package and harsh
fiscal measures to slash a gaping budget deficit.
The elections were widely viewed as determining the extent
of Cardoso's power in his second term and his ability to tackle
the financial crisis in Latin America's largest economy.
Brazil's state governors enjoy wide spending and taxing
powers and influence the way their states' delegations vote in
Congress.
Their nationwide impact is most evident in Sao Paulo,
Brazil's wealthiest state, with a population of 30 million and
a $300 billion economy that is nearly as large as Argentina's.
Results issued so far showed that Mario Covas, a social
democrat and longtime friend of Cardoso, was reelected as
governor in Sao Paulo, with 57 percent of the vote to 43
percent for right-wing populist Paulo Maluf, with 15 percent of
the ballots counted.
Covas, 68, has won praise for putting Sao Paulo's financial
house in order by restructuring a huge debt, dismissing more
than 100,000 civil servants and selling inefficient businesses.
Cardoso considered the Sao Paulo race so important that he
delayed announcing sweeping tax hikes and budget cuts to avoid
hampering Covas' chances. The formal unveiling of a $30 billion
IMF-based loan package also had to wait.
Political analysts said the Covas victory would bolster
Cardoso's party, the PSDB, in Congress -- which will soon vote
on an array of austerity measures that are the basis for the
loan package.
"The PSDB is strengthened within the governing coalition.
It maintains control of the main state of the country, the
richest and most populated," said commentator Franklin Martins
on Globo TV network.
But Cardoso could face problems from former President
Itamar Franco, a critic of Cardoso's free-market economic
policies who looked to have won as governor of Minas Gerais.
Although only 5 percent of the vote had been counted,
Franco led incumbent Gov. Eduardo Azevedo, a member of
Cardoso's party, by 58 percent to 42 percent.
"One result which is definitely negative for Fernando
Henrique is the victory of Itamar Franco in Minas Gerais. The
other results are either neutral or convenient," said analyst
Murillo Aragao, the head of consulting firm Arko Advice.
"However, the result is very positive in Sao Paulo for the
PSDB and for Fernando Henrique," he told Reuters.
Franco, who as president appointed Cardoso finance
minister, claims to be the father of the Real Plan, which
launched Brazil's new currency after years of manic inflation,
although many see Cardoso as the plan's architect.
Leftists were winning the governorships in Rio de Janeiro,
the Federal District, which includes Brasilia, and the southern
state of Rio Grande do Sul.
In Rio, where 35 percent of the votes had been counted,
left-winger Anthony Garotinho was thrashing conservative former
city mayor Cesar Maia by 56 percent to 44 percent.
In the Federal District, Workers' Party (PT) candidate
Cristovam Buarque led conservative former Gov. Joaquim Roriz by
51 percent to 49 percent, with 35 percent of the votes counted.
With 45 percent of the ballots counted in Rio Grande do
Sul, which borders Uruguay, PT candidate Olivio Dutra had 55
percent of the vote to 45 percent for Antonio Britto of the
Brazilian Democratic Movement Party, which is allied to
Cardoso.
Almost 65 million Brazilians out of a total electorate of
106 million were expected to have voted on Sunday to choose 13
governors. Elections in Brazil's 14 other states were settled
in the first round of voting on Oct. 4.
Copyright 1998, Reuters News Service |
