Nepal's independent elections commission Friday announced the indefinite postponement of a November 22 election that was to choose a constituent assembly which would have decided on the future of the monarchy and rewritten the country's constitution. The postponement was agreed upon to solve differences over the issues of the monarchy and the electoral system between Nepal's parties.

"Despite completion of all preparations and our wish to hold the elections on schedule, we will not be able to conduct the election on our own," the country's election commission said in a statement. "We have put off all election-related activities with immediate effect."

The European Union said it was deeply concerned while the United States said it was disappointed by the government's decision to postpone the November 22 election of a constituent assembly to draft a new constitution and decided on the future of monarchy.

Last month, after failing to reach an agreement on the abolition of the monarchy in Nepal and a new electoral system, Maoists threw the country into political chaos by leaving the interim coalition government. The Maoists demanded the abolishment of the monarchy ahead of the constituent assembly election due to be held in November, participating at several rounds of negotiations with representatives of the eight parties forming the coalition.

Also, the Maoists demanded a proportional representation that would replace the mixed system adopted by the coalition government, which included the Maoists at that time. The Maoists filed several other demands, most of them referring to compensations for the relatives of those killed during the insurgency and the adherence of Maoist rebels to the army.

But Koirala and other alliance members said Nepal’s status will be established after the upcoming election, which will be held according to the current system. Observers said the Maoists will suffer a drastic defeat in the elections and are trying to avoid them by putting forward these demands. Almost 15,000 people lost their lives and thousands were forced out of their homes in a decade of fighting which ended with a peace deal signed by the Maoists and the government.