Ecuador’s Correa rescued, now faces political fight

QUITO, (Reuters) – Ecuadorean President Rafael Correa  emerged triumphant after a military raid to rescue him from  protesting police, but still faces a political fight to push  through austerity measures testing his popularity.
Troops stormed a hospital in Quito late yesterday and  freed the 47-year-old leftist leader from dissident police who  attacked him during a demonstration over bonus cuts, forcing  him to seek refuge in the building for hours.
He accused his rivals of trying to topple him in a coup.
But Correa was buoyed by his return at the end of a day of  turmoil in the South American OPEC member that brought messages  of support from Washington to Havana.
“I give so much thanks to those heroes who accompanied me  through this hard journey,” Correa told cheering supporters  from the balcony of his presidential palace.
“Despite the danger, being surrounded, ministers and  politicians came, to die if necessary. With that bravery, with  that loyalty, nothing can defeat us.”
The local Red Cross said two police officers died as troops  stormed the building. At least 88 people were injured yesterday as Correa supporters skirmished with police outside  the hospital. There was some unrest in other cities, too.
Ecuador has a history of coups and instability.
Oil prices rose to a seven-week high of near $80 a barrel  on Thursday, partly due to the unrest in the crude producer.
Correa, a U.S.-trained economist and ally of Venezuela’s  socialist firebrand, Hugo Chavez, took office in 2007 and  alienated international investors a year later when his  government defaulted on $3.2 billion in global bonds.
But he won strong public approval for policies such as  exerting greater state control over natural resources,  including thrashing out new contracts with foreign oil firms.
His efforts to cut back spending made him enemies, however,  including some of the rank and file in the security forces.
Correa was attacked by police demonstrating against cuts to  their bonuses and frozen promotions when he tried to talk to  them yesterday. They jostled him and threw a tear-gas  cannister that exploded close to his face. Then, outside the  hospital, the police fired tear gas at his supporters before  troops moved in.
Analysts predicted Correa would ride out the crisis thanks  to his public support, the lack of unified opposition to his  administration, and the fact that the police high command did  not back the protests by their subordinates.
The Eurasia Group think-tank said recent events suggested  his government would likely be left with less political room to  make necessary economic adjustments.
“How he responds to this crisis may very well shape his  ability to complete his term,” it said.
Correa still faces a potentially damaging showdown with  Congress, where half the 124 members are officially allied with  him, but some in his left-wing Country Alliance party have been  blocking budget proposals aimed at cutting state costs.
Ecuador’s 2-year-old constitution lets the president  declare an impasse, dissolve Congress and rule by decree until  a new presidential and parliamentary election.
Such a move — which Correa has said he is considering —  would still need to be approved by the Constitutional Court.
South American leaders who met in Buenos Aires for an  emergency meeting of the Unasur group welcomed Correa’s return  to the presidential palace and said they would send their  foreign ministers to Quito to show support for him.
“We can celebrate the fact that our comrade, the president  of Ecuador, Rafael Correa, has been freed and is well … the  situation in Ecuador is under control,” Argentine President  Cristina Fernandez said.
Colombian President Juan Manuel Santos said the region’s  condemnation of yesterday’s turmoil showed “South America is  united.”
“We’re united in the region to defend democracy. That’s a  very important signal,” he said.