MercoPress. South Atlantic News Agency

Last news from South America.

Economist Alejandro Toledo won Peru's presidential election on Sunday after a 14-month odyssey in which he narrowly beat his leftist rival Alan Garcia.

Latest official results with 61.9 percent of ballots counted gave Toledo 51.58 percent to 48.42 percent for Garcia, Peru's president from 1985 to 90

. ''I think the moment has come to extend to Mr. Toledo my congratulations as the victor,'' a calm-looking Garcia, 52, his wife at his side, told reporters. ''He will have in me a loyal collaborator to cooperate in economic, social and institutional construction of our homeland ... I will give all my help,'' he added. Thousands of delighted supporters who saw Toledo as a hero for fighting ex-President Alberto Fujimori repressive regime, were already celebrating in the streets over the victory.

''Today the change begins,'' proclaimed a huge white and green banner on the facade of the Lima hotel where Toledo was awaiting the results. He was expected to address crowds later.

Toledo, a 55-year-old centrist has promised to create a million jobs but manage Peru's struggling economy prudently. His fans cheered Toledo's campaign nickname ''Pachacutec'' -- in reference to a mighty 15th century Inca emperor -- and waved banners saying ''Thank you Peru.''

''I think this is excellent -- Toledo is best for the country,'' said Adalberto Suyon, 34, a security guard.

Renowned novelist Mario Vargas Llosa said victory for Toledo, who shares the humble Andean Indian roots of most of Peru's population, would be ''a symbolic triumph'' after Fujimori's fall last November amid a corruption scandal sparked by his fugitive spy chief, Vladimiro Montesinos.

Toledo stood unsuccessfully against Fujimori in elections a year ago described by monitors as undemocratic. He then led street protests against Fujimori's third term, which soon ended in chaos after the machinations of Montesinos and alleged manipulation of Peru's Congress, courts, media and military were exposed.

Draft for Europe-Mercosur talks

The European Union already has a draft of proposals for the coming July meeting in Uruguay with Mercosur to consider the creation of a free trade area, said Juan Manuel Silva head of Europe's Agriculture Department during a brief visit to Montevideo. Mr. Silva met with Uruguayan president Jorge Batlle and later remarked to local press that a "concrete understan