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Edition: U.S. Article Comments (0) Slideshow Save Email Print Reprints Most Popular Most Shared Factbox: Five facts about Poland's Komorowski 04 Jul 2010 Poles to pick president from rival conservative camps 01 Jul 2010 Gulf beaches quiet as spill spreads | Video 04 Jul 2010 Gulf beaches quiet as spill spreads | Video 04 Jul 2010 Special Report: Should BP nuke its leaking well? 02 Jul 2010 France to look at possible U.S. sub link to sinking 02 Jul 2010 Lenovo says Apple losing out in China - paper 04 Jul 2010 Pricing for double-dip 02 Jul 2010 Central bankers shoulder bigger burden 04 Jul 2010 RPT-GLOBAL MARKETS-Asia stocks inch up but outlook uncertain 04 Jul 2010 Google-ITA deal talks unnerves travel bosses 29 Jun 2010 BP launches search for new investors: report 04 Jul 2010 Reforms in focus after Komorowski wins Polish election | Video 3:18am EDT More American women not having children: report 25 Jun 2010 Men "less engaged in work than women" 30 Jun 2010 Methane in Gulf "astonishingly high": U.S. scientist 22 Jun 2010 Bank of China: New funding to suffice for 3 years 12:40am EDT Special Report: Should BP nuke its leaking well? 02 Jul 2010 Factbox: Five facts about Poland's Komorowski 04 Jul 2010 Gulf beaches quiet as spill spreads | Video 04 Jul 2010 Mexico state elections stage battle for presidency Digg This Tweet This Share on LinkedIn Share on Facebook Factbox FACTBOX-Key political risks to watch in Mexico Thu, Jul 1 2010 Related News Drug killings weigh as Mexican states vote Sun, Jul 4 2010 Mexican states to vote under shadow of drug war Sat, Jul 3 2010 Drug hitmen kill Mexican official ahead of vote Thu, Jul 1 2010 Drug hitmen kill Mexican official ahead of vote Thu, Jul 1 2010 Related Topics World » 1 / 4 A federal policeman stands guard as residents wait in line to cast their vote at a polling station in Matamoros, in the Mexican state of Tamaulipas, July 4, 2010. Credit: Reuters/Luis Lopez By Mica Rosenberg MEXICO CITY | Mon Jul 5, 2010 1:09am EDT MEXICO CITY (Reuters) - Mexico's ruling and main opposition parties wrested ground from each other in elections for governors in a dozen states on Sunday, setting the stage for a tough battle for the presidency in 2012. Initial results showed President Felipe Calderon's National Action Party, known as PAN, with surprise gubernatorial wins in three states controlled by the Institutional Revolutionary Party, or PRI, which had been pegged to sweep the vote. The PRI beat out rival parties and held onto governorships in the remaining nine states, building a base to launch a likely presidential bid by the party's rising star, State of Mexico Governor Enrique Pena Nieto. "This election proves the PRI is the leading political force in the country," the party's president, Beatriz Paredes, told a news conference. Mexico's divided left joined forces with Calderon's conservatives in awkward alliances to win in PRI strongholds Oaxaca, Puebla and Sinaloa. The PRI, which ruled Mexico for 71 years as a semi-dictatorship, has been in the opposition for a decade after losing to the PAN in 2000. Elections also were held for mayors and local deputies in nearly half of Mexico's 31 states on Sunday. Analysts say local issues determining state votes may not translate to a national win for either party in 2012 but the PRI hopes to capitalize on Calderon's sinking popularity as the economy sputters and drug violence spins out of control. Staining Calderon's legacy, more than 26,000 people have been killed during his time in office, mostly traffickers and police but also civilian bystanders. "I voted for the PRI because Calderon got us into this war where innocent people are paying the price," said Jorge Lopez, 46, an unemployed builder in a shantytown full of drug dens and brothels in the northern border city of Ciudad Juarez. Tit-for-tat murders to control smuggling routes have turned Ciudad Juarez into one of the world's most violent cities. Campaigning was blighted by drug gang intimidation as suspected cartel hitmen murdered two candidates. It was some of the most blatant evidence of traffickers interfering in politics since Calderon came to power in late 2006 and launched a army-lead drug crackdown that has ended up fueling more violence as cartels splinter and feud over turf. INVESTORS SPOOKED Investors sold off Mexico's peso at the start of the week after Rodolfo Torre, the PRI front-runner for governor in the border state of Tamaulipas, and four aides were killed in an ambush by drug hitmen, Mexico's highest-profile political murder in 16 years. Egidio Torre replaced his dead brother as candidate and won after casting his own vote under heavy guard. A mayoral candidate in Tamaulipas, where the Gulf cartel is battling a gang of former enforcers called the Zetas, was also murdered in a likely drug hit aimed at swaying the vote. Election day was not free of drug violence. In several states there were reports of irregularities and vote-buying. Long lines formed at polling stations in Tamaulipas after some 40 percent of election volunteers quit fearing attacks. In Chihuahua state there were at least 19 drug murders on Sunday, including the brother of a PAN mayoral candidate in the isolated town of Batopilas, police said. Four bodies were hung from bridges in Chihuahua's capital. Along the U.S-Mexico border cartels rule over semi-lawless swaths of territory employing networks of lookouts, from taxi drivers to taco-stand owners. Journalists there increasingly face threats and business owners pay regular extortion fees. In many areas, the situation is deteriorating despite more than a $1 billion in anti-drug aid from the United States. As well as being angry at Calderon, some voters blamed local PRI politicians for not doing more to stop the violence. "The insecurity we are living in here is because of bad PRI governments. I can't say anything more because it might cost me my life," said a 55-year-old businessman in Reynosa, a major manufacturing city in Tamaulipas across from McAllen, Texas. Mexico grapples with endemic corruption within state-level politics and a number of candidates have been accused by rivals of being on drug cartel payrolls. Mexican media have reported that the sitting PRI governor of Tamaulipas has a bodyguard wanted by the United States on drug charges, while the left-wing mayor of the resort of Cancun is in jail awaiting trial on charges of laundering drug money. The PRI's Hector Murguia was elected mayor of Ciudad Juarez, early results showed, despite accusations from rivals and rights groups that he works for the feared Juarez cartel. This week a severed head was dumped outside his house. (Additional reporting by Julian Cardona in Ciudad Juarez and Robin Emmott in Monterrey; Editing by Catherine Bremer and Bill Trott) World Add a Comment *We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language or appear to be spam and review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. © Copyright 2010 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Reader Feedback Analyst Research Mobile Newsletters RSS Podcasts Widgets Your View Labs Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts Venture Capital Journal International Financing Review Project Finance International PEhub.com PE Week FindLaw Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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