Although a narrow plurality was achieved by Fretilin, a coalition involving the next three largest groups formed a government.

At the time of the parliamentary elections, Timor-Leste was the poorest country in Asia, with 41% of the population below the poverty line ($0.55 per day).

At least 37 people died in the 2006 unrest, when nearly half the army mutinied and skirmishes broke out between the mutineers and the police.

Looting, arson and fighting between youth gangs [de] also took place, and ethnic conflicts erupted.

An international intervention force led by Australia restored peace and order, and a new United Nations police mission (UNMIT) was sent to Timor-Leste to provide security during the 2007 elections.

[4] One of the mutinous soldiers, Alfredo Reinado, and several companions broke out of a prison where they were serving time for unauthorized possession of weapons.

Twelve of these seats had previously been held by Fretilin, and the 13th district representative was an independent candidate.

[6][7] A week before the election, the ballots reached Timor-Leste by chartered plane accompanied by representatives of CNE and the electoral authority STAE (Secretáriado Técnico de Administração Eleitoral).

Former President Xanana Gusmão contested the elections with his newly founded National Congress for Timorese Reconstruction.

[13] Pedro da Costa of the PST criticized that some parties give money to the voters.

CNRT member Alfonso "Kuda Lay" Guterres, 35, was hit three times by bullets and died.

When Guterres' body was taken to his hometown of Ossu that evening, 24-year-old CNRT member Domingus was shot dead, and a 16-year-old was injured.

The International Stabilization Force (ISF) moved a unit to Viqueque, and the UN increased its security efforts for the election campaign.

[17][18][19][20][21] In October 2008 the Baucau District Court sentenced police officer Luis da Silva to six years in prison for killing Guterres.

[22] On 27 June the election campaign ended with some violent incidents: Fretilin accused CNRT members of throwing stones at one of its convoys.

Atul Khare, the head of UNMIT, reported violent incidents at only four of the more than 150 election campaign events so far.

Three localities in the district of Viqueque opened late because bad weather the day before meant that election documents could not be delivered here by helicopter until the morning.

The ballot boxes were taken to the 13 counting centers in the district capitals, in some cases by helicopter, after voting had ended.

Provisional results announced on 9 July 2007, shows that Fretilin leads in first place with 29.02% of the vote, followed by the CNRT with 24.10%, the ASDT-PSD with 15.73%, and the Democratic Party with 11.30%.

The C-ASDT-PSD prevailed in the western highlands, becoming the strongest force in Aileu (47.30%), Ainaro (29.13%) and Manufahi (26.79%).

Gusmão has reportedly offered Fretilin positions in the government[44] though this probably refers to the ex-Fretilin members such as José Luís Guterres.

On 23 August, violence occurred in several places, including Dili, and two people were reported killed in Ermera.

In Metinaro, near Dili, there was fighting in the streets with machetes and other weapons; at least ten houses were reportedly burned and the town's market was destroyed.

[49] President José Ramos-Horta also mentioned the possibility of a national unity government, but Alkatiri, reiterating that a coalition including both Fretilin and the CNRT was out of the question, said that it would be better for democracy for there to be a strong opposition.

[54] However, he subsequently expressed interest in a government of national unity and said that Fretilin's doors were "open for all parties, including CNRT".

[55] On 16 July, President Ramos-Horta said that Fretilin and the CNRT-led alliance of parties had agreed to form a national unity government, although details remained to be discussed and it had not been decided who would be prime minister.

[60] Alkatiri said on 1 August that he would be Fretilin's candidate for prime minister, while criticising Gusmão's record as president.

[61] In a statement, Alkatiri called for a national unity government, saying that this would bring stability and citing what he described as "the will of the electorate".

[64] Ramos-Horta announced on 6 August that the CNRT-led coalition would form the government and that Gusmão would become prime minister.

[68][40] José Luís Guterres, the leader of a dissident Fretilin faction, became deputy prime minister.