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After serving two five year terms, he stepped down in 2001; in the 2001 election, Movement for Democracy candidate Carlos Veiga, who had served as Prime Minister under Monteiro, was defeated by Pedro Pires of the African Party for the Independence of Cape Verde (PAICV).
The African Party for the Independence of Cape Verde (PAICV), led by Prime Minister Jose Maria Neves, had been the governing party since 2001; it faced the main opposition Movement for Democracy (MpD), led by Carlos Veiga.