The United States reacted to the unexpected and satisfying outcome of the referendum held today in Venezuela were President Hugo Chavez lost the right to be indefinitely re-elected along with other reforms that he was trying to implement in one of the U.S.’s major oil provider.

"It looks like the people spoke their minds," White House spokeswoman Dana Perino said.

"They voted against the reforms that Hugo Chavez had recommended and I think that bodes well ... for freedom and liberty," he added. 

Perino underlined the fact that the Chavez’s defeat came despite "the opposition not being able to get out on TV and make their point."

According to his speeches and several official statements, Chavez’s plans for the oil-rich nation would have set the country on the path to socialist government and lifted term limits for the country's president. The controversial left-wing populist was already re-elected once, but after the referendum results he would have to step down in 2012 under current rules.

The Caracas inhabitants were urged to vote and government supporters roused them on Sunday, starting at 4 am, with trumpets and fireworks. Long queues had been forming at polling stations and the voting began at 6 am (1000 GMT).

However, there was an abstention rate of about 44 per cent and 51 per cent of the Venezuelans voted against Chavez’s reforms, while 49 per cent were in favor.

Chavez acknowledged his defeat as soon as he found out about the outcome of the referendum. He "thanked and congratulated" everybody for taking part at the referendum and mentioned that his thanks go even to those who voted against the reform because they did it democratically.

The outcome of this referendum comes as a bit of a surprise not only for Chavez and this especially because the fact that the controversial left-wing populist had won all previous elections and referendums since he took office in 1999 with at least 60 per cent of the vote. Many have accused Chavez of having a dictatorial way of governing.

"We respect the rules of the game. We have said so, but it is not the first time," said Chavez and also noted that "the Venezuelan democracy is maturing". He also said that if he would have won the referendum in a similar fashion – with just 51 per cent - "I would not have wanted that victory".