While the recall of parliament on Friday was seen as a significant step towards the return of democracy, Andrew Anderson, deputy director of Front Line, says the political process could still collapse again.

"Getting parliament up and running was just the first step;

the country now has to decide on the role of the monarchy in Nepal, " he says. "There is an extremely republican feeling on the streets and so there is still the potential for things to go wrong. The next month or so will be very delicate."

King Gyandendra yielded to large-scale protests last week and ordered the reinstatement of parliament. This followed five days of demonstrations which saw up to half-a-million people take to the streets every day to protest against his direct rule.

Friday's parliamentary sitting was the first since it was dissolved in May 2002 after political wrangling over extending emergency powers to combat the Maoist insurgency.

Anderson was in Nepal to monitor the cases of human rights defenders jailed by the authorities. Many leading human rights defenders, such as democracy activist Krishna Pahadi, had been in jail since the middle of January.

Demonstrations against the king's rule had led to total curfews in Kathmandu. Despite this, an estimated half-a-million protesters took to the streets to demand a return to parliamentary rule. Nineteen people were killed by police during the protests. Many died after being shot by plastic bullets, although police also used live ammunition at times.

"The feeling of opposition to the king was very strong on the streets, " says Anderson. "Most of the protests were focused on the ring-road around the city. The worst of the violence took place when people tried to get into the city itself and towards the palace."

The king made an attempt to appease demonstrators the week before last when he proposed allowing the opposition to nominate a prime minister.

However, while this was welcomed by the EU and India, it was rejected by the demonstrators. Indeed, according to Anderson, some people in Nepal are still hostile towards the EU because of its reaction to the proposal.

"The proposal didn't go nearly far enough for the protesters and so there is a degree of antiEU feeling after the EU accepted the proposal, " he says. "For the people on the streets, the recall of parliament is just the first step towards setting up a constitutional assembly and removing the monarchy completely."

At midnight on Monday, the king announced a full recall of parliament, which led to joyous scenes on the streets the following morning.

"I was quite fearful on Monday night of what was going to happen the following day, but then the king made his announcement and the atmosphere completely changed, " says Anderson. "There was an impromptu celebration in the city attended by 40,000 people, and many of the human rights defenders were released from prison and allowed to talk to the crowd."

Major issues are still unresolved, most importantly the role of the monarchy in Nepal. The emergence of Maoist rebels on the scene also raises questions over the future direction of the country.