De la Rúa ran on the Alliance Party ticket as a Radical Civic Union member with running mate Carlos Álvarez.

[3] The public rejection of Menem along with the country's deteriorating economic situation strongly contributed to de la Rúa's victory.

This policy was part of an overall package intended to improve the economy and attend to outstanding debts such as the Teacher Incentive Fund.

On 8 June 2000, Menem was placed under house arrest on charges of leading a conspiracy to illegally sell 6,500 tons of weapons and ammunition to Ecuador and Croatia.

However, on 12 November, the Supreme Court of Argentina Decision ruled that there was no conspiracy and forgery and ordered Menem release Throughout 2000, the De la Rúa government sought to control public spending, lower domestic interest rates and maintain monetary and financial stability.

Through agreements with provincial governments, and with private funding, he sought to perform road, water and housing improvements throughout the country for 20 billion dollars.

De la Rúa enacted the plan through decree since, according to Interior Minister Federico Storani, there was no assurance that the Argentine Congress would approve the law as quickly as necessary.

De la Rúa's government asked for further assistance from the International Monetary Fund (IMF) and private banks to reduce the pressure of foreign debt.

In December 2000, Economy Minister Jose Luis Machinea negotiated a bailout package of about 40,000 million dollars, known as a financial shield.

The objectives of the act were seen as an attempt to weaken the power of large unions in favor of small ones, and to lower labor costs.

In October Vice President Carlos Alvarez resigned over allegations that he was bribing senator to vote for the Education Reform Act.

The Alvarez resignation and the handling of the Act brought desertions from the center-left party congressmen who were dissatisfied with De la Rúa style of government.

In 2001, the Justicialista Party controlled the Senate while De la Rúa had a slim majority in the Chamber of Deputies.

Frepaso began to distance themselves from De la Rúa after the Alvarez resignation, the appointment of Domingo Cavallo and the sustained economic policy.

He put in place plans to stimulate the economy by making large cuts in public spending, withdrawing funds from areas such as health and education.

De la Rúa replaced Lopez Murphy with Domingo Cavallo, who had held the job during the Menem government.

In the Buenos Aires downtown area, federal police were overwhelmed, but managed to keep violence out of the Plaza de Mayo.