Batlle, the 72-year-old son and great nephew of past Uruguay presidents,
                  narrowly won Sunday's runoff election with 51.6 percent of the vote. His
                  opponent, Tabare Vazquez of the Broad Front coalition of leftist parties,
                  garnered 44 percent.

                  Vazquez had proposed a controversial income tax on the middle class that was
                  criticized as being too harsh.

                  Batlle will succeed outgoing President Julio Sanguinetti for a five-year term beginning
                  March 1.

                  Vote of confidence for ruling party

                  Batlle and Sanguinetti both belong to the center-right Colorado Party.
                  National media portrayed Batlle's victory as a sign of support for
                  Sanguinetti's economic policies, which have been credited for cutting the
                  nation's annual average inflation rate from 30 percent over the last three
                  decades to about 3 percent this year.

                  But Batlle faces more economic challenges, including rising unemployment
                  and maintaining his nation's production of goods. Economic crises in
                  neighboring Brazil and Argentina have affected Uruguay in both areas.

                  Batlle has said he wants to stimulate investment by other nations and boost
                  Uruguayan exports.

                  "Batlle will be successful if he can win over parts of the opposition," said
                  analyst Cesar Aguir at Equipos-Mori pollsters.

                  The Broad Front, a coalition of center-left parties, recently won elections
                  leaving it with 40 percent of the seats in Congress.