In January 2007, President Chávez named a new Vice President (the former head of the CNE) and cabinet, drawing largely from deputies of the National Assembly. Chávez announced a renewed effort to implement his vision of "21st Century Socialism" in Venezuela. He asked the National Assembly to grant him special constitutional powers via an "enabling law" to rule by decree over a broad range of society and subsequently received those powers for a term of 18 months. He also took major steps to nationalize the telecommunications and electricity sectors, as well as to finalize a majority government share in many oil projects, all sectors with significant foreign investments.

On August 15, 2007, President Chávez proposed a package of reforms to his own 1999 Constitution, including measures that would have allowed indefinite presidential re-election, a reorganization of the geographic boundaries of government, and a redefinition of private property. On December 2, 2007, the proposed reforms were narrowly defeated in a public referendum after student groups, traditional opposition leaders, and former Chávez allies urged Venezuelans to reject the package. The vote was the first electoral loss for President Chávez since he assumed office and was viewed by many as a rebuke of his efforts to consolidate greater power in the executive office. President Chavez has since signaled his intent to pass many of the changes defeated in the referendum by presidential decree.

Gubernatorial and mayoral elections are scheduled to be held in November 2008.