Nicolás Maduro emerges from Chávez's shadow Nicolás Maduro, the Venezuelan president, has pledged to continue his "economic offensive" against private business after the victory of his ruling PSUV in Sunday's local elections strengthened his hand. But despite his rhetoric, analysts said the result could give him enough political muscle to undertake less populist measures such as a devaluation. The socialist PSUV won 49 per cent of the vote in 337 mayoral contests, confounding efforts by the opposition coalition, which took 43 per cent, to cast the elections as a referendum on Mr Maduro's seven-month old government and the legacy of the late Hugo Chávez. They underestimated us. They called me a donkey," Mr Maduro told a late-night rally on Sunday. This week we are going to deepen the economic offensive to help the working class and protect the middle class . . . We're going in with guns blazing, so watch out. Although the opposition coalition won the mayorships of Venezuela's four largest urban areas, including metropolitan Caracas, government supporters reacted with glee to the result and gathered to sing a Christmas carol that played on St Nicholas and the president's Christian name. People of peace, lower your prices! Nicolás has arrived!" trilled the jingle, referring to a pre-election giveaway by Mr Maduro that forced shops to cut prices on electrical goods. But critics say extending forced price cuts will only increase shortages of basic goods and that Venezuela needs to lift restrictions on private business and scrap foreign exchange controls. With a budget deficit estimated at 16 per cent of gross domestic product largely financed by money-printing, inflation is running at 54 per cent. On the black market, the bolivar trades at around 10 times the official 6.3 to the dollar rate. "The mother of all problems here is the foreign exchange regime," says Leonardo Vera, an economist at the Central University of Venezuela. A devaluation is inevitable. In a post-election note to clients, Barclays said it expected a devaluation of the official rate to 12.5 to the dollar within the next 30 to 60 days. Henrique Capriles, leader of the opposition, recognised the results but said they showed continuing division over Chávez's legacy. "Nobody should feel defeated," he said in a late-night press conference. In the past couple of months, despite still acknowledging Chávez is the icon, he has made an effort to do things differently Steve Ellner, University of the East, Venezuela Still, it was disappointing result for Mr Capriles, after he lost the presidential election in April by just 1 percentage point, and has led to renewed talk of a change of opposition leadership ahead of parliamentary elections in 2015 and the possibility of a national referendum on Mr Maduro's presidency in 2016. "We will have to redefine our strategy," one opposition political strategist said. Meanwhile, Mr Maduro appears strengthened by the results, or at least to have won some political breathing space, after struggling to emerge from Chávez's shadow and to assert his authority over the faction-ridden PSUV. "The fact that PSUV candidates were able to retain important posts across the country shows discontent over worsening economic conditions has yet to translate into massive support for the opposition," said Eurasia, the risk consultancy. This is further evidence that President Nicolás Maduro and chavismo have more staying power than some observers believe. In the run-up to the elections Mr Maduro's own governing style began to emerge. Instead of becoming more emollient than his predecessor and building bridges with the private sector, as some had expected, he has instead been more Chávez than Chávez. He won the ability to rule by decree, launched ever more strident anti-capitalist tirades and increased state control over media outlets, while two television broadcasters critical of the government were recently sold to businesses more willing to toe the government line. "At first people said he was a copycat of Chávez," says Steve Ellner, a leftist historian at Venezuela's University of the East. But in the past couple of months, despite still acknowledging Chávez is the icon, he has made an effort to do things differently. So far the "plasma TV effect" - as some have called the imposed price cuts on electrical goods shops - and the vilifying of businessmen accused of speculation have gone down well with the chavista rank and file. "Although not socialist in character, the measures have given the government oxygen and had a positive impact on the chavista base," says Heiber Barreto, a leftwing political analyst with close knowledge of the PSUV. Nonetheless, Mr Maduro's pledge to continue "the economic offensive" amid a deteriorating economy, coupled with PSUV infighting, only increases the uncertainty hanging over Venezuela. The big question now is which direction Mr Maduro will lean towards politically and economically now election campaigning is over. "There is a struggle between the democratic and non-democratic forces within the party," warns Mr Barreto. We will soon have a clearer idea of which side will win, and who stands on which side.