Interim President Rodriguez confirmed 4 December elections, 1½ years ahead of official due date. Constituent assembly elections and regional autonomy referendum, key demands in protests against previous Mesa government, scheduled for July 2006.

Political upheaval and mass demonstrations continued. President Carlos Mesa’s resignation finally accepted by Congress 9 June. Demonstrations against appointment of constitutional successor, Senate President Hormando Vaca Diez, led to Supreme Court Chief Eduardo. Rodriguez selection as caretaker. Rodriguez now charged with calling new presidential and congressional elections, made difficult as no consensus among social movements and political parties as to establishment of constituent assembly and holding of referendum on regional autonomy.

Energy bill continued to generate tension. Thousands marched through La Paz opposing bill throughout month - police forcibly restrained crowd. President Carlos Mesa opposed law, deeming 50% tax rate on foreign energy firms as unworkable, but allowed it to go to Congress. Protests escalated amid demands natural gas be nationalised and constitution rewritten. Opposition MAS party and El Alto residents organised large marches and massive road blocks. Army high command announced intention to preserve national unity - stemming fears of imminent coup attempt.

Political unrest continued with ongoing disagreement over energy policies. Senate approved controversial hydrocarbon law increasing taxes on foreign oil companies 29 April: President Carlos Mesa opposes bill. Mesa refused to accept Foreign Minister Juan Ignacio Siles' resignation after lower house censure for failing to defend Bolivia's interests in water dispute with Chile. Movement Towards Socialism leader Evo Morales proposed presidents of Argentina, Brazil and Venezuala help resolve water dispute and praised government verdict that outlaws concessions to foreign oil companies accused of exploiting domestic gas and oil without Congressional approval.

Political turmoil and nation-wide protest over government and its energy policies. President Carlos Mesa’s credibility damaged after resignation vacillations: 6 March resignation to Congress rejected by parliament – after massive display of public support, Mesa agreed to govern until end of term in 2007. Opposition Movement Towards Socialism supported disruptive anti-Mesa street protests and roadblocks, but called them off without extracting concessions. Lower house passed hydrocarbon bill 16 March – to be discussed in Senate, where disagreement continued over terms of bill.

After 3 weeks of pro-independence demonstrations in Santa Cruz, President Carlos Mesa agreed to hold referendum that could extend greater autonomy to other provinces and allow Santa Cruz residents to elect own local leaders; Mesa also reshuffled cabinet. Executive and legislative branches agreed new agenda covering 4 key points: hydrocarbons law, autonomy referendum, election of governors and constituent assembly. Recent poll revealed 52% approval for Mesa (up from 42% in January).

Country hit by wave of strikes and protests as fuel price hike reignited calls for autonomy in gas-rich Tarija region and economic capital Santa Cruz. President Mesa’s government made partial concession - only to face escalation of protests: 30,000 marched in Santa Cruz 21 January. Call for open assembly to ratify protesters’ autonomy declaration rejected by government. Indigenous and MAS leader Evo Morales, while not directly involved in Santa Cruz crisis, stoked opposition with calls for nationwide strikes. Thousands took to streets in protest against threat to national unity. On 27 January, Mesa administration gave in to demands for direct election of local authorities in Santa Cruz and referendum on regional autonomy before August.

Political tension over hydrocarbons law and Constituent Assembly continued. Armed forces reaffirmed support for President Carlos Mesa to protect natural gas. Preliminary municipal elections results showed Movimiento al Socialismo party obtained most mayoral posts, followed by Movimiento Nacional Revolucionario. Attorney General Gareca announced plan to request extradition of former President Sanchez de Lozada from U.S.

Protesters in Santa Cruz and Tarija called for greater autonomy from La Paz and referendum on regional autonomy in 11 November strikes – referendum ruled out by president of parliament. President Mesa's hydrocarbon bill still not passed. Supreme Court ruled Mesa's designation of 6 Supreme Court judges unconstitutional. Renewed rumours about right-wing conspiracy to overthrow Mesa administration.

Calls for complete nationalisation of gas continued even after parliament passed amended version of President Mesa’s bill proposing tougher conditions for multinational gas companies 4 October. 5,000 gathered in La Paz to commemorate killing of at least 56 during 17 October 2003 violent ousting of President Sanchez de Lozada.