SOURCE/LINK: http://www.bloomberg.com/news/articles/2015-08-14/brazil-braces-for-protests-as-referendum-on-rousseff-impeachment
August 14, 2015 — 12:01 AM BRTUpdated on August 14, 2015 —
1:44 PM BRT
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As allegations of corruption and
incompetence swamp Brazil’s government, and plummeting commodity prices sap its
economy, hundreds of thousands of angry citizens are expected to descend on central
squares across the country on Sunday, posing a key test for President Dilma
Rousseff.
This
will be the year’s third mass protest against Rousseff, who is facing growing
calls for her impeachment. A strong showing could help support her ouster and
deepen a sell-off on financial markets.
The Free Brazil Movement, one of the groups
organizing the demonstrations, says rallies are confirmed in 114 cities.
|
Dilma Rousseff, Brazil's president.
Photographer: Pete Marovich/Bloomberg
The
Free Brazil Movement, one of the groups organizing the demonstrations, says
rallies are confirmed in 114 cities.
Congress
is watching the turnout both to judge the support for impeachment proceedings
and to measure the level of discontent in their home districts.
“Representatives
in the lower house are paying close attention to the protests on Sunday to see
if they have a national impact,” said Leonardo
Picciani the leader of the Democratic Movement Party in the
lower house, which remains in uneasy alliance with Rousseff’s Workers’ Party.
Picciani’s
party, known as the PMDB, has the largest representation in Congress. Speaker
Eduardo Cunha declared his personal opposition to the government after he was
accused of soliciting and accepting a $5 million bribe, which he denied. While
his party has not formally broken from the Workers’ Party, some of its
representatives say they’ll vote for impeachment, an aim shared by large
segments of the population.
Reconciliation Talks
The
past week has actually provided some respite for the government. The Senate,
led by PMDB member Renan Calheiros, showed signs it will cooperate, and two
events involving social movements drew supporters for Rousseff and her party.
Vice President Michel Temer, also of the PMDB, will invite Cunha and Calheiros
for a reconciliation meeting next week, according to a government official who
asked not to be named when speaking about future plans.
Cunha
told Bloomberg News he hasn’t yet been notified of the meeting, but he’s
willing to “dialogue with anyone.”
O
Globo, the newspaper of the country’s largest media group, often accused of
trying to overthrow the government, published aneditorial this
week criticizing Congress for feeding a political crisis that aggravates the
country’s economic crisis. And the widely expected decision by Moody’s
Investors Service to downgrade Brazil’s sovereign credit rating was also taken
by some as a good sign, since the country was left with a stable outlook.
Legal Infraction
In
another development interpreted by some as positive for the government,
Brazil’s audit court granted 15 additional days to respond to new
irregularities found in Rousseff’s 2014 accounting. Since impeachment requires
a legal infraction, not simply low popularity, the audit court’s
recommendation, which will be sent to Congress for a final decision, is seen as
the most likely basis to begin impeachment proceedings.
Since
narrowly winning reelection last October, Rousseff, Brazil’s first female
president, has embarked on an austerity program that has cost her political
capital. Her popularity has plummeted to 8 percent, a record low, and more than
two-thirds of Brazilians support impeachment, according to Datafolha, a polling
firm. The economy in 2015 is forecast to post its worst performance in 25 years
amid ongoing corruption probes into politicians and executives.
Expensive Measures
Rousseff
has reversed herself on some popular but expensive measures such as caps on
electricity and gasoline prices. The middle class that doesn’t qualify for
subsidies has been hardest hit as power bills rose an average 23 percent, and
more than 50 percent in some regions. Higher interest rates are restricting
consumer credit, unemployment has hit 6.9 percent and inflation is rising,
inching toward 10 percent.
Rousseff
won election in 2010 following Luiz Inacio Lula da Silva, the central figure of
the Workers’ Party. She rode his popularity for most of her first term until
demonstrations in 2013 brought millions to the streets protesting corruption
and spending on the World Cup hosted by Brazil last year.
Rousseff
recovered enough to win reelection but protests in March and April took aim at
her.
Renan
Machado, a 29-year-old lawyer from Sao Paulo said Sunday’s rallies will be an
opportunity to demonstrate the outrage shared by many Brazilians.
“I’m
going to protest to end this wave of corruption because I can’t stand this
incompetent government any longer,” Machado said.
Collor’s Impeachment
The
date of this week’s protest is no accident -- demonstrations on Aug. 16, 1992
helped lead to impeachment proceedings against Fernando Collor de Mello.
Collor,
who resurrected his political career to become a senator, is one of the more
than 30 sitting lawmakers under investigation for alleged participation in a
kickback scheme that funneled money from contracts with the state oil company,
Petroleo Brasileiro SA, to political parties. Most of the politicians under
investigation are part of Rousseff’s ruling coalition, and police arrested the
former treasurer and a senior official of her party. Prosecutors haven’t
presented evidence against Rousseff and she has repeatedly declared her
innocence.
Rousseff
has stepped up her public appearances this month, defending herself and her
plan to remain in office. She said she never considered resigning and
asked Brazilians to reject politics
that create chaos for political gain.
Miguel
Rossetto, her general secretary, said on Thursday that Sunday’s rallies should
not be over-interpreted. “There are protests in favor of the government and
those that are critical of the government,” he said. “It’s part of the learning
process of our democracy.”
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