As no candidate for president received more than 50% of the vote, a second round was held on 29 November between the top two candidates, José Mujica of the ruling Broad Front (who received 48% of the vote) and former president Luis Alberto Lacalle of the National Party (29%).

[2] After taking office in 2005, Vazquez cut the unemployment rate from 12.3 to 7.3 percent, encouraged trade and foreign investment, increased wages and social spending, and boosted the central bank reserves and the country's credit rating.

The historically dominant Colorado made gains and increased its representation to 5 senators and 17 deputies.

Pedro Bordaberry led the Colorado Party to a notable electoral recovery, practically doubling its votes cast in 2004.

The Independent Party, with candidates Pablo Mieres and Iván Posada, gained an additional seat in the Chamber of Deputies.