Call Bush a Moron, win an electoral mandate for sweeping reforms (not that the two are connected, but they damn well should be)

Ecuador's Correa with strong mandate after vote

By Patrick Markey

QUITO (Reuters) - Ecuadorean President Rafael Correa on Monday emerged with a strong mandate to dissolve Congress and seek broad reforms after claiming a majority in a weekend vote for an assembly to rewrite the constitution.

The left-winger joins allies Venezuelan President Hugo Chavez and Bolivia's Evo Morales in convoking a national assembly to push through a constitutional rewrite and limit the influence of powerful elites who resist his proposals.

A convincing victory for his Alianza Pais, or Country Alliance, party in the assembly will allow Correa to shore up legislative control and push through his "21st Century" socialism and plans for tighter state economic control that have already rattled Wall Street.

Correa on Monday called for his delegates to press for early presidential and congressional elections after the assembly, end the central bank's autonomy and abolish special oil saving funds that restrict government spending.

He also struck a more moderate tone in dismissing concerns he wants to expand his authority and saying his renegotiation of oil contracts would be "friendly," with no deep reforms expected in the energy and mining sectors.

"This is a great slap on the back for the government ... we will take this with great responsibility because we cannot fail," Correa said at a press conference. "No one is trying to establish a monarchy here."

Correa, who came into office in January, wants to purge the influence of traditional parties, which are widely blamed for the instability that ousted three presidents in a decade.

With an initial 3 percent of votes counted, Correa's party had a lead in votes. But a tally of seats could take weeks because of the complex proportional representation system.

A government-linked exit poll and a quick count -- in which a sample of the votes are tallied -- on Sunday showed Alianza Pais had won far more than the 66-seat majority needed to control the 130-member assembly.

Correa claimed his party may have secured about 80 seats in the assembly.

WALL STREET JITTERS

Slight early bond trading reflected Wall Street's expectations of a Correa victory. Ecuador's benchmark 2030 global bond on Monday fell 0.250 point to bid 90.000 with a yield of 11.359 percent.

Investors are worried about his vows to renegotiate the country's $10 billion foreign debt, rework oil contracts in South America's No. 5 crude producer and review mining deals.

"With Alianza Pais in the driver's seat, the new legislature is likely to validate greater government intervention in critical sectors of the economy," Goldman Sachs analyst Alberto Ramos wrote in a note to clients.

Government officials have differed on the reforms they want. But Correa's key delegate and choice for assembly president is Alberto Acosta, a former energy minister who favors more state control over energy resources.

A U.S.-trained economist, Correa is highly popular for his rallying cry against career politicians as a corrupt mafia, but foes fear he will amass power and follow Chavez by steering his poor Andean country away from free-market policies.

Correa says his majority bloc would push to dissolve the Congress and be replaced by a legislative committee while the assembly debates. The make-up of the legislative committee will reflect his majority in the assembly.

The assembly will debate a draft of constitutional reforms put together by academics. A final version must be approved in a popular referendum after at least six months.

Original article posted here.