[2] The presidential election was won by opposition candidate Fernando Lugo of the Patriotic Alliance for Change, who defeated Blanca Ovelar of the long-ruling Colorado Party.

Additionally, when Lugo took office on 15 August, it marked the first time since Paraguay gained independence in 1813 that an incumbent government peacefully transferred power to an elected member of the opposition.

[8] He is an advocate of land reform and other measures to address poverty, but has distanced himself from leftists such as Hugo Chávez and Evo Morales, saying that he is not left-wing or right-wing but "in the middle".

Lugo is backed by the Patriotic Alliance for Change (APC), which includes both left and right wing groups, notably the conservative Authentic Radical Liberal Party.

President Duarte caused controversy just before the election by telling the Ultima Hora newspaper that Lugo "probably sells himself" for money from Venezuela, Bolivia, and Ecuador.

She said that she would focus on job creation and the strengthening of agricultural cooperatives, hoping to reduce the number of Paraguayans who emigrate for economic reasons.

Lugo's supporters celebrated in the streets of Asuncion, and he declared that "today we've written a new chapter in our nation's political history".

[3] A couple of hours later, President Nicanor Duarte Frutos appeared at a press conference somberly but remarked that for the first time in the history of Paraguay a handover to the opposition will take place peacefully and in an orderly fashion.

[18] In August, shortly before taking office, Lugo struck a deal with Oviedo, enabling him to govern with a parliamentary majority.