Whether to veto those promotions will be the first decision facing Mr Paniagua's choice as defence minister.

ECONOMIST: Peru: The future without Fujimori | The

The Board of Directors was finally censured and Valentin Paniagua became President of the transitional process until new elections could be called.

CENTERFORSECURITYPOLICY: Fujimori: The other side of the story

Mr Paniagua must also manage an economy badly hurt by political turmoil.

ECONOMIST: Peru: The future without Fujimori | The

To complicate matters, Mr Paniagua's congressional majority depends on a group of slippery defectors, who have shuttled in and out of the Fujimorist benches.

ECONOMIST: Peru: The future without Fujimori | The

But Mr Paniagua can count on a new spirit of co-operation.

ECONOMIST: Peru: The future without Fujimori | The

Congress's first act under Mr Paniagua's speakership was to reinstate three Constitutional Court judges sacked in 1997 for ruling that Mr Fujimori could not stand for re-election this year.

ECONOMIST: Peru: The future without Fujimori | The

The opposition wants Valentin Paniagua, a veteran democrat, to become the new speaker of Congress, since it sees him as a suitable caretaker president were Mr Fujimori to be ousted.

ECONOMIST: Peru