Uruguay’s elections have become overshadowed by a referendum

Uruguayans have long been able to look across the Rio Plata to their larger and louder neighbours in Argentina and roll their eyes at the endless economic crises and political chaos. Not for much longer, perhaps. Uruguay heads to the polls today to elect its next president, but election fever has been roundly overshadowed by (if economists are to be believed) referendum also taking place today.

The national plebiscite has been proposed by trade unions and would radically overhaul the country’s entire pension system. The retirement age would fall by five years to 60, pension payouts would be pegged to the minimum wage, and the $23 billion private pension industry would be effectively nationalised – private savings would be transferred to a government trust. All the main election candidates oppose the change, but polls suggest that around half of Uruguayans are in favour.

Uruguay is South America’s smallest country and, in a region which has all-too-often been characterised by chaotic politics, stands out as a utopia of stability.