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In the 1999 election Plaid Cymru gained seats in traditional Labour areas such as Rhondda, Islwyn and Llanelli, achieving by far its highest share of the vote in any Wales-wide election.
While Plaid Cymru regarded itself as the natural beneficiary of devolution, others attributed its performance in large part to the travails of the Labour Party, whose nomination for Assembly First Secretary, Ron Davies, was forced to stand down in an alleged sex scandal.
The ensuing leadership battle, won by Alun Michael, did much to damage Labour, and thus aided Plaid Cymru, whose leader was the more popular and higher profile Dafydd Wigley.
The Labour Party's UK national leadership was seen to interfere in the contest and deny the popular Rhodri Morgan victory.
Less than two months later, in elections to the European parliament, Labour support slumped further, and Plaid Cymru came within 2. 5 % of achieving the largest share of the vote in Wales.
Under the new system of proportional representation, the party also gained two MEPs.

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