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Edition: U.S. Article Comments (0) Save Email Print Reprints Most Popular Most Shared Tests on Gulf oil "superskimmer" inconclusive: ship owner | Video 2:55pm EDT BP eyes stake sale as oil spill costs top $3 billion | Video 2:56pm EDT France to look at possible U.S. sub link to sinking 02 Jul 2010 Special Report: Should BP nuke its leaking well? 02 Jul 2010 Bulls on the run in shortened week 1:32am EDT RPT-Wall St Week Ahead: Bulls on the run in shortened week 04 Jul 2010 Global stocks dip on growth fears 12:24pm EDT Factbox: Five facts about Poland's Komorowski 04 Jul 2010 Pricing for double-dip 02 Jul 2010 FACTBOX-Foreign companies stepping away from Iran 11:00am EDT BP eyes stake sale as oil spill costs top $3 billion | Video 2:56pm EDT Special Report: Should BP nuke its leaking well? 02 Jul 2010 Tests on Gulf oil "superskimmer" inconclusive: ship owner | Video 2:55pm EDT Hedge funds see "trying" year in 2010 8:23am EDT BP launches search for new investors: report 5:57am EDT Scrap dollar as sole reserve currency: U.N. report 29 Jun 2010 Komorowski wins Polish election with reforms in focus | Video 3:53pm EDT Methane in Gulf "astonishingly high": U.S. scientist 22 Jun 2010 Google-ITA deal talks unnerves travel bosses 29 Jun 2010 EU parliament group backs U.S. bank data deal 4:08pm EDT Mexico state votes signal tough 2012 election race Digg This Tweet This Share on LinkedIn Share on Facebook Related News Mexico state elections stage battle for presidency 1:09am EDT 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 » Mexico » By Mica Rosenberg and Miguel Angel Gutierrez MEXICO CITY | Mon Jul 5, 2010 3:22pm EDT MEXICO CITY (Reuters) - Surprise gains by Mexico's ruling conservatives in gubernatorial elections in key states at the weekend signal that the 2012 presidential race could be tighter than expected. President Felipe Calderon's National Action Party, or PAN, joined forces with left-wing parties in some states to wrest control of three governor seats from the Institutional Revolutionary Party in elections across nearly half the country, which the PRI had been expected to sweep. "The results don't display a victory or a strengthening in positions," Mexican political analyst Fernando Dworak said. "We are being reserved on the outlook for 2012 as many things could still come into play." In Puebla, Oaxaca and Sinaloa states the PAN paired up with the left-wing Party of the Democratic Revolution, or PRD, its archrival in the 2006 presidential race when leftist Andres Manuel Lopez Obrador came within a whisker of winning and then disputed his defeat with months of streets protests. Votes from Sunday's elections for governors, mayors and local deputies were still being counted on Monday races were close in two other PRI strongholds, Durango and Veracruz. "Without the local alliances between the PAN and the PRD, which the PRI has christened 'unholy,' the victories ... would have been unthinkable," columnist Denise Maerker wrote in Mexico's El Universal newspaper. The PRI had a strong showing in the election, winning nine governor spots, including three it seized from rival parties, but it had been expected to win all the races hands down. The PRI, which ruled Mexico for 71 years as a semi-dictatorship, has been in opposition for a decade after it lost power in an historic 2000 election to the PAN. It is gearing up for a comeback in 2012 with its young rising star, State of Mexico Governor Enrique Pena Nieto. With a feeble economy and raging drug gang violence dogging Calderon's ratings, many analysts are already putting their money on a PRI return, but Sunday's results suggest many voters in Mexico are still skeptical of a party with a reputation of ruling with a mixture of corruption and authoritarianism. DRUG GANG INTIMIDATION The PAN and the PRD are unlikely to join forces again for the presidential race and either party on its own may have a hard time beating the PRI, which controls large blocks of voters from unions to farmer organizations in rural Mexico. "The alliance was a successful bet, the results prove that," Jose Gonzalez, the PAN's deputy leader, told Reuters. "But for the presidency, frankly, it would be impossible." State-level voting in Mexico tends to focus on local, rather than national issues, yet the PRI is keen to capitalize on Calderon's sinking popularity as a slow economic rebound and out-of-control drug killings weigh on morale. More than 26,000 people have been killed since Calderon came to power in late 2006 and launched an army-led crackdown on drug gangs. But the strategy has only sparked more violence as pressure from security forces splinters cartels, exacerbating battles over valuable smuggling turf. Campaigning for the July 4 elections was blighted by drug gang intimidation as suspected cartel hitmen murdered two candidates and threatened others, in the strongest sign yet that traffickers are trying to sway the political process. The ambush and murder of a gubernatorial candidate in northeastern Mexico spooked investors and hit the peso. Mexico grapples with the endemic federal and local-level corruption left over from the PRI's seven-decade rule, and even under the PAN cartels have sought out new relationships with officials. A number of candidates from different parties in the state elections were accused by rivals of working for cartels. The PRI is working to move away from its past and rebrand itself under the fresh-faced Pena Nieto, a pro-business lawyer with an MBA who is trying to energize young voters. (Additional reporting by Caroline Stauffer; Editing by Catherine Bremer) World Mexico 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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