The Lugo government expected to cooperate with the Congress controlled by the opposition and abandoned the plan replacing political parties with social movements，which relaxed tension between the government and the opposition. President Lugo was expected to complete his four-year term because the planned impeachment by the opposition was on the verge of abortion. In the local election held in November，the opposition Colorado Party won a great victory. In 2010 Paraguay gained a strong economic growth due to the good performance of the agricultural sector and the expansionary fiscal policy. The Lugo government had announced the “state of exception” in five provinces to cope with security challenges from the “Paraguay People’s Army”. Diplomatically Paraguay gave priority to urging Brazil to approve the Itaipu hydropower agreement.