The leftist ruling coalition led by President Lugo was confronted with challenges due to the failure of the constitutional amendment for re-election. It was a thorny issue for the ruling coalition to name a competitive candidate for the upcoming presidential election in 2013. Horacio Carters strengthened the control over the Colorado Party who is expected to get the party's nomination. In 2011 the national economy maintained growing. But, in 2012, the growth rat might slow down due to the European debt crisis. With regard to social situation, Paraguay People's Army was still underway for kidnapping, but did not lead to political instability. The Itaipu hydroelectric compensation agreement with Brazil entered into force which facilitated Paraguay to improve financial position. At the same time, Paraguay continued to promote relations with the United States, Latin American countries and Japan. <<