The Paraguayan Congress approved a 30 day "state of exception" in four northern provinces. The bill, which President Lugo requested for 60 days, suspends certain constitutional rights, bans public protests and allows police to arrest people without warrants.
The move comes after an EPP attack killed four police officers last week. The EPP is a small insurgency that has committed kidnappings and murders. There are disagreements over whether they are motivated by money or by ideology. Paraguayan and Colombian authorities agree that the EPP has received training from the FARC.
Paraguay's opposition has claimed Lugo is too soft on the EPP and has previous links to some close to the group. However, Lugo has sent additional police and soldiers to the area prior to the state of exception and seems to be doubling down with this move. The president is sensitive to criticism that he has not done enough to counter violence or that he might be linked to radicals in the country.
The region appears to be quiet on the recent developments. The fight against the EPP seems like the sort of issue that would be good for UNASUR or the SADC (or the OAS) to discuss. I would think the region would be unified in backing Lugo and strengthening his government against violence on one side and political criticism on the other.