Alvaro Arzu won the first round of the 1995 general elections in November, and then narrowly beat Alfonso Portillo of the Guatemalan Republican Front (FRG, Frente Republicano Guatemalteco) in the second round, which took place in January 1996.
The main achievement of Arzus presidency was the signature of a peace accord with the guerrilla group Guatemalan National Revolutionary Unity, which ended Guatemala's 36-year-long civil war.
Negotiations had been going on since 1990, and Arzu met the URNG in Mexico 1996. A ceasefire followed and various peace agreements were signed as the year progressed. An accord legalizing the URNG was signed in Madrid. Congress passed a law giving a partial amnesty to the combatants, before the final accord for a firm and lasting peace was signed later in the year
As part of this peace accord, Arzus government proposed a series of reforms to the Constitution of Guatemala; these reforms included disbanding the Presidential Guard, reducing the armed forces and recognizing the rights of indigenous communities. The proposed reforms were later rejected.