President Hugo Chavez suffered defeat today as Venezuelans rejected his bid to run for re-election indefinitely and accelerate his socialist revolution.
Despite an oil-financed, state-backed campaign, Chavez narrowly failed to muster enough support for a constitutional reform package that would have scrapped term limits on his rule and given him broad new powers
Venezuelan President Hugo Chavez
Election officials said the "No" camp won with about 51 per cent of the vote against the reform package, while Chavez scored around 49 per cent support.
The defeat curbs for now his plan to control foreign currency reserves, erode private property rights and enshrine socialism as a state priority in the constitution.
Venezuelan debt prices jumped today, helped by Chavez's defeat and a concession speech that was unusually conciliatory. The country's currency and debt prices had both fallen sharply in recent weeks on fears that a victory for Chavez would increase tensions in Venezuela and lead him to intensify his assault on "evil" capitalism.
Chavez quickly accepted defeat and called for calm. He said the people had spoken and that he heard them, but he also pledged to find another way to pass his reform plans.
"I will not withdraw even one comma of this proposal, this proposal is still alive," he said. "For me, this is not a defeat."
Along with the controversial measures expanding his powers, his package also included popular moves to reduce the working day to six hours and give pensions to street vendors and housewives.