This article was originally posted by Buisness Week
Venezuelan President Hugo Chavez suffered his worst setback at the ballot box since taking office and lost his two-thirds majority in a congressional vote as support for his rule wanes ahead of 2012 presidential elections.
Opposition candidates, who boycotted the 2005 congressional race, secured 52 percent of the overall popular vote, giving them enough seats to force Chavez to negotiate on key decisions, said Ramon Guillermo Aveledo, head of the Democratic Unity Table alliance. Election officials didn’t provide a tally of the overall vote.
Chavez’s party, while securing at least 90 of 165 seats in the National Assembly after redrawing electoral districts, fell short of the 110-seat threshold needed to be given decree powers, approve the national budget and pass new laws single- handedly. Opposition candidates won 61 seats and non-aligned indigenous candidates won 3 seats according to the results announced at 2 a.m. local time, eight hours after polls closed. Another 11 seats remain to be decided.
“This is a tremendous defeat of the Bolivarian project,” said Friedrich Welsch, political analyst at the Simon Bolivar University in Caracas. “Chavez built his campaign on a vote of confidence in his socialist project and the majority of the people gave their votes to forces opposed to it.”