(AP) A congress wholly loyal to President Hugo Chavez approved a law Wednesday granting him authority to enact sweeping measures by decree.

Meeting at a downtown plaza in a session that resembled a political rally, lawmakers unanimously approved all four articles of the law by a show of hands.

"Long live the sovereign people! Long live President Hugo Chavez! Long live socialism!" said National Assembly President Cilia Flores as she proclaimed the law approved. "Fatherland, socialism or death! We will prevail!"

Chavez, who is beginning a fresh six-year term, says the legislation will be the start of a new era of "maximum revolution" during which he will consolidate Venezuela's transformation into a socialist society. His critics are calling it a radical lurch toward authoritarianism by a leader with unchecked power.

Hundreds of Chavez supporters wearing red — the color of Venezuela's ruling party — gathered in the plaza, waving signs reading "Socialism is democracy," as lawmakers read out passages of the law giving the president special powers for 18 months to transform 11 broadly defined areas, including the economy, energy and defense.

"The people of Venezuela, not just the National Assembly, are giving this enabling power to the president of the republic," said congresswoman Iris Varela, addressing the crowd.

Lawmakers discussed the law by each of its four articles, approving one after the other by a show of hands. At the end, they stood and cheered.

Chavez, a former paratroop commander who easily won re-election in December, has said he will use the law to decree nationalizations of Venezuela's largest telecommunications company and the electricity sector, slap new taxes on the rich, and impose greater state control over the oil and natural gas industries.

The law also allows Chavez to dictate unspecified measures to transform state institutions; reform banking, tax, insurance and financial regulations; decide on security and defense matters such as gun regulations and military organization; and "adapt" legislation to ensure "the equal distribution of wealth" as part of a new "social and economic model."

Chavez plans to reorganize regional territories and carry out reforms aimed at bringing "power to the people" through thousands of newly formed Communal Councils, in which Venezuelans will have a say on spending an increasing flow of state money on neighborhood projects from public housing to road repaving.

Chavez's opponents, however, argue the law dangerously concentrates power in the hands of single man.

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