Venezuela's opposition won control of the legislature from the ruling Socialists for the first time in 16 years on Sunday, giving it a long-sought platform to challenge President Nicolas Maduro.
The opposition Democratic Unity coalition won 99 seats to the Socialists' 46 in the 167-national National Assembly, the election board said, with some districts still to be counted.
When the results were announced soon after midnight, fireworks were set off in celebration in pro-opposition districts of Caracas while government supporters dismantled planned victory parties.
Maduro, 53, quickly acknowledged the defeat, the worst for the ruling "Chavismo" movement since its founder Hugo Chavez took power in the South American OPEC nation in 1999.
"We are here, with morals and ethics, to recognize these adverse results," Maduro said in a speech to the nation, blaming an "economic war" against him for the results.
Opposition leaders, who have lost over-and-over since Chavez's first election victory 17 years ago, were jubilant, even though their victory was mainly thanks to public disgust at Venezuela's deep economic recession.
"The results are as we hoped. Venezuela has won. It's irreversible," tweeted Henrique Capriles, a former presidential candidate and one of the leading figures in the coalition.
Various opposition sources predicted that once counting was finalised, they would win as many as 113 seats.
That would give them a crucial two-thirds majority needed to shake up institutions such as the courts or election board.
The result could embolden government foes to seek a recall election against Maduro in 2016 if they garner the nearly 4 million signatures needed to trigger a referendum.
The government's defeat was another blow to Latin America's left following last month's swing to the center-right in Argentina's presidential election.
The Democratic Unity coalition capitalized on discontent among Venezuela's 29 million people with the world's highest inflation and product shortages that many blame on Maduro.
Critics say failed nationalizations, rigid currency controls, and hostility towards the private sector spurred a crisis that was then exacerbated by the global slump in oil prices. Venezuela depends on crude for 96 percent of its export revenue.
"I used to be a proud Chavista," said Rodrigo Duran, a 28-year-old security guard who switched allegiance in his vote on Sunday. "But how can I carry on when my salary doesn't allow me to feed my children?
They deceived us." Venezuela's opposition will now have the chance to break the ruling party's control over the budget and seek amnesty for dozens of jailed activists, including hardline leader Leopoldo Lopez.
"I'm so happy," said his beaming wife, Lilian Tintori, who has become a prominent campaigner for the opposition.
(Writing by Andrew Cawthorne; Editing by Kieran Murray)
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