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Bolivian President Carlos Mesa announced May 15 that he would not enact a controversial new hydrocarbons law, because doing so would only deepen the internal political conflicts tearing the country apart. However, Mesa's veto of the new energy legislation did not stop anti-government protests from erupting in La Paz on May 16.

Tens of thousands of highland indigenous protesters and residents of the industrial, impoverished city of El Alto filled the streets of downtown La Paz and tried to occupy the central squares where the presidency and Congress are located. Police managed to stop the protesters without triggering major violence, although they reportedly employed some tear gas and water cannons. Several injuries were reported, and police arrested one protester after discovering that he was carrying dynamite. Legislators and congressional staff were evacuated from the area. Outside La Paz, protesters also blocked the La Paz-Oruro and Oruro-Cochabamba highways. Stratfor thinks the protests will continue to escalate this week and could become increasingly violent.

Indigenous, peasant and labor leaders have combined forces in a renewed effort to force regime change in Bolivia. Jaime Solares, president of the Bolivian Workers Confederation, said the protesters demand the immediate nationalization of the natural gas industry without any compensation to foreign oil companies. The protesters also demand the dissolution of Congress and the resignation of Mesa from the presidency.

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