Guido's nineteen months in office were characterized by a severe economic recession, open conflict between competing factions within the armed forces, and anti-democratic measures including continued proscription of Peronists from Argentine politics.

Yet Guido, with critical support from the "legalist" faction of the military, prevailed in his mission to return Argentina to constitutional government with a general election held on 7 July 1963.

For over 12 hours after the coup, the Argentine Presidency remained vacant as civilian leaders and their military allies worked to forestall the installation of a dictatorship under Army Commander-in-Chief Raúl Poggi [es].

[11] Although nominally President, Guido was a "virtual captive"[13] required to "co-govern"[14] with the armed forces, which exercised the "negative power of veto" over civilian authorities.

The Azules emerged victorious in the ensuing battles, enabling Guido to remain in office and paving the way for the return to constitutional government through the July 1963 election that brought Arturo Umberto Illía of the UCRP to power.

In the final years of the Frondizi administration, the Argentine economy had recovered from the economic crisis of 1959 but continued to face high inflation (by historical standards) due to an excessive rate of credit expansion[16] and balance of payments deficits as a severe drought sharply reduced agricultural exports.

[19] However, the stabilization program succeeded in its primary goal of averting a balance of payments crisis with foreign exchange reserves increased to USD $320 million by the end of 1963.

[17] Beef exports benefitted from penetrating new markets in Italy and Spain and intensive efforts to control an outbreak of foot-and-mouth disease that locked Argentina out of the U.S.

[21] Argentina also experienced an encouraging expansion of non-traditional exports, including sugar, fruit juices, and even manufactured goods such as motor vehicle parts, agricultural machinery, tools, and textiles.

In mid-1963, the U.S. Chamber of Commerce estimated that American companies had invested over USD $1 billion in Argentina and employed over 135,000 local workers in the motor vehicle, petroleum, electric appliances, pharmaceuticals, food and beverage, and consumer products industries.

[23] U.S. and European companies contributed to Argentina's development by operating training programs, although many of the newly-trained employees subsequently sought to emigrate since their skills were in demand abroad.

[17] In addition to higher exports, Argentina saw a sharp 33% reduction in imports from 1961 to 1963 due to depressed consumer demand and the end of the Frondizi-era capital investment boom.

[28] On 29 March 1963, Guido secured a USD $322 million credit package that included new loans, foreign exchange agreements, and refinancing existing debts.

[29] One month before the 1963 general election, the U.S. government agreed to lend USD $35.5 million to Argentina at less than 1 percent interest for a housing program and to address balance of payments issues.

Private Argentine companies held USD $532 million in foreign debt, nearly half of which was payable by the end of 1963, setting up continued pressure on the balance of payments.

[17] The Guido administration borrowed heavily from multilateral institutions, including a USD $25 million 15 year loan from the Inter-American Development Bank for farm mechanization.

The Azules moved first on 20–21 April 1962 with non-violent troop movements led by General Enrique Rauch [es] in the streets of Buenos Aires that successfully forced the resignation of Poggi and Army Secretary Marino Carreras, who were linked to the Colorados.

[37] Domestic opposition to Argentina's involvement was suppressed; on 27 October 1962, police in Buenos Aires fired tear gas into a "rock-throwing mob of about 400 people.

[40] In its 1962 Plan of Action for Argentina, the U.S. State Department established as a key objective to "[c]ooperate with and support the Guido Government in all feasible ways in order to strengthen it vis-à-vis the military.

"[43] Tensions existed with Spain in spite of ideological affinity between the two right-wing "sister republics" due to Perón continued interference in Argentine politics while living in exile in Madrid.

[44] Spanish authorities responded that they could restrain Perón's public activities but were not able to restrict private contacts, which reportedly included visits from Argentine union and political leaders.

For example, La Nación, a prominent Buenos Aires newspaper, felt free to publish an editorial commenting that the Law of Succession had been applied "with appreciable elasticity".

However, the election was carried out peacefully and in a generally "honest" manner on 7 July 1963 with an 85% participation rate,[48] demonstrating Argentines' commitment to democracy in spite of the electoral restrictions, social and political unrest, and economic stagnation at the time.

[49] Army leaders confined troops to their barracks forestall any coup attempts[50] while Onganía traveled to garrisons to encourage officers to support the election.

Two weeks prior to the election, 270,000 teachers nationwide went on strike for higher wages[53] while movie houses shut down to protest restrictions on screening foreign films.

However, Minister of the Interior General Osiris Villegas issued last-minute decrees that eliminated the seven-party Front and threatened its Presidential candidate Vicente Solano Lima with judicial disqualification.

UCRI leader Oscar Alende campaigned on continuing Guido's economic policies and encouraging foreign investment, although with better opportunities for the working class.

Several weeks after the election, Delia Parodi, a Peronist secretary general, warned that Perón's followers would turn to subversion due to continued proscription on participating in Argentine political life.