 At the same time, presidential elections were held which were won by a moderate, Stjepan Mesić.The new Račan government amended the constitution, changing the political system from a presidential system to a parliamentary system, transferring most executive presidential powers from the president to the institutions of the parliament and the prime minister.The new government also started several large building projects, including state-sponsored housing, more rebuilding efforts to enable refugee return, and the building of the A1 highway.