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Michel Temer's Tall Task to Heal Brazil's Economy
May 13, 2016
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Joel Velasco, senior VP at Albright Stonebridge Group, discusses the challenge facing Brazil's Acting President Michel Temer to restore Brazil's business climate and fix the nation's economy. He speaks on "Bloomberg Markets." (Source: Bloomberg)
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Monica de Bolle, Peterson Institute visiting fellow, discusses the challenges facing Brazil's new acting President Michel Temer. She speaks with Bloomberg's Carol Massar on "Bloomberg Markets." (Source: Bloomberg)
SOURCE/LINK:http://www.bloomberg.com/news/videos/2016-05-12/the-big-challenges-facing-brazil-s-michel-temer
SOURCE/LINK: VIDEO: http://www.bloomberg.com/news/videos/2016-05-13/michel-temer-s-tall-task-to-heal-brazil-s-economy
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The Big Challenges Facing Brazil's Michel Temer
May 12, 2016
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Monica de Bolle, Peterson Institute visiting fellow, discusses the challenges facing Brazil's new acting President Michel Temer. She speaks with Bloomberg's Carol Massar on "Bloomberg Markets." (Source: Bloomberg)
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Michel Temer's Tall Task to Heal Brazil's Economy
34:08 - Joel Velasco, senior VP at Albright Stonebridge Group, discusses the challenge facing Brazil's Acting President Michel Temer to restore Brazil's business climate and fix the nation's economy. He speaks on "Bloomberg Markets." (Source: Bloomberg)
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SOURCE/LINK:https://www.youtube.com/watch?v=R3S9oa9RMbc
Inauguração Eldorado Brasil - Entrevista Michel Temer
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Michel Temer, Presidente da República em exercício, cumprimenta os empresários pela inauguração da Eldorado Brasil em Três Lagoas (MS) e mostra o otimismo do Governo Brasileiro com o desenvolvimento da região e do País.
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Brazil impeachment New leader Temer calls for trust
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Published on May 12, 2016
Brazil's new interim President Michel Temer has addressed the nation after the Senate voted to back the impeachment trial of Dilma Rousseff.
"Trust in the values of our people and in our ability to rebuild the economy," Mr Temer said.
He has named a business-friendly cabinet that includes respected former central bank chief Henrique Meirelles as finance minster.
Ms Rousseff denounced her removal as a "farce" and "sabotage".
Mr Temer was the leftist Ms Rousseff's vice-president before withdrawing his party's support in March. She has accused him of involvement in a "coup".
After Wednesday's all-night session that lasted more than 20 hours, senators voted by 55 votes to 22 to suspend her and put her on trial for budgetary violations.
In her final speech on Thursday afternoon, she again denied the allegations and vowed to fight what she called an "injustice" by all legal means.
Where did it all go wrong for Rousseff?
Real-life House of Cards? How Brazil reacted
Profile: Interim President Michel Temer
The challenges facing Brazil's interim president
How impeachment came about
Mr Temer, 75, has now taken over as president for up to 180 days - the maximum time allowed for the impeachment trial of Ms Rousseff, 68.
He said: "It is urgent to restore peace and unite Brazil. We must form a government that will save the nation."
Stressing that "economic vitality" was his key task, he added: "It is essential to rebuild the credibility of the country at home and abroad to attract new investments and get the economy growing again."
But he also said Brazil was still a poor nation and that he would protect and expand social programmes.
Brazil’s acting president meets with new cabinet
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Brazil's Interim President Michel Temer has met with his newly-installed cabinet. Temer took power on Thursday after the Senate voted to suspend Dilma Rousseff pending a decision on whether to remove her from office permanently. Temer charged his new ministers with enacting business-friendly policies while maintaining the still-popular social programs that were the hallmark of Rousseff's Workers' Party.
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Michel Temer faz primeiro pronunciamento como presidente | COMPLETO | 12/05/2016
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Michel Temer é o novo presidente do brasil.Michel Temer faz primeiro pronunciamento como presidente - 12/05/2016. O presidente em exercício Michel Temer afirmou nesta quinta-feira (12), em seu primeiro pronunciamento como substituto de Dilma Rousseff no comando do Palácio do Planalto, que irá manter os programas sociais da gestão petista, como Bolsa Família, Pronatec e Minha Casa, Minha Vida.Primeiro Pronunciamento de Michel Temer à Nação Como Presidente
Michel Temer faz primeiro pronunciamento como presidente
Temer também afirmou que, além de melhorar o ambiente de negócios no país para o setor privado, para produzir e gerar emprego, é necessário restaurar as contas públicas. “De imediato, precisamos também restaurar o equilíbrio das contas públicas, trazendo a evolução do envidividamento do setor público de volta ao patamar de sustentabilidade. Quanto mais cedo formos capazes de reequelibrar as contas públcaas, mais rápido consehuiremos retomar o crescimento”, declarou.
Michel Temer faz primeiro pronunciamento como presidente. Primeiro Pronunciamento de Michel Temer à Nação Como Presidente
Temer assumiu interinamente a Presidência na manhã desta quinta, após o Senado aprovar, por 55 votos a favor e 22 contra, a instauração de seu processo de impeachment. Logo depois de a petista ser intimada sobre o afastamento, o vice-presidente foi notificado da decisão dos senadores.Temer faz primeiro discurso
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SOURCE/LINK:http://www.reuters.com/article/us-brazil-politics-idUSKCN0Y206H
World | Fri May 13, 2016 12:13pm EDT
Related: World
Brazil's Temer calls for unity, confidence for Brazil recovery
BRASILIA | By Lisandra Paraguassu and Alonso Soto
Brazil's interim President Michel Temer called on his country to rally behind his government of "national salvation," hours after the Senate voted to suspend and put on trial his leftist predecessor, Dilma Rousseff, for breaking budget laws.
Temer, a 75-year-old centrist now moving to steer Latin America's biggest country toward more market-friendly policies, told Brazilians to have "confidence" they would overcome an ongoing crisis sparked by a deep economic recession, political volatility and a sprawling corruption scandal.
"It is urgent we calm the nation and unite Brazil," he said, after a signing ceremony for his incoming cabinet. "Political parties, leaders, organizations and the Brazilian people will cooperate to pull the country from this grave crisis."
Brazil's crisis brought a dramatic end to the 13-year rule of the Workers Party, which rode a wave of populist sentiment that swept South America starting around 2000 and enabled a generation of leftist leaders to leverage a boom in the region's commodity exports to pursue ambitious and transformative social policies.
But like other leftist leaders across the region, Rousseff discovered that the party, after four consecutive terms, overstayed its welcome, especially as commodities prices plummeted and her increasingly unpopular government failed to sustain economic growth.
In addition to the downturn, Rousseff, in office since 2011, was hobbled by the corruption scandal and a political opposition determined to oust her.
After Rousseff's suspension, Temer charged his new ministers with enacting business-friendly policies while maintaining the still-popular social programs that were the hallmark of the Workers Party. In a sign of slimmer times, the cabinet has 23 ministers, a third fewer than Rousseff's.
A constitutional scholar who spent decades in Brazil's Congress, Temer faces the momentous challenge of hauling the world's No. 9 economy out of its worst recession since the Great Depression and cutting bloated public spending.
He quickly named respected former central bank governor Henrique Meirelles as his finance minister, with a mandate to overhaul the costly pension system.
ROUSSEFF DEFIANT
The Senate deliberated for 20 hours before voting 55-22 early on Thursday to put Rousseff on trial over charges that she disguised the size of the budget deficit to make the economy look healthier in the runup to her 2014 re-election.
Rousseff, 68, was automatically suspended for the duration of the trial, which could be up to six months. Before departing the presidential palace in Brasilia, a defiant Rousseff vowed to fight the charges.
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In her speech, she reiterated what she has maintained since impeachment proceedings were launched against her last December by the lower house of Congress. She denied any wrongdoing and called the impeachment "fraudulent" and "a coup."
"I may have made mistakes but I did not commit any crime," she said.
Rousseff's mentor, former President Luiz Inacio Lula da Silva, who now faces corruption charges, stood behind her and looked on dejectedly. Even as outgoing ministers wept, Rousseff remained stolid.
"I never imagined that it would be necessary to fight once again against a coup in this country," Rousseff said, in a reference to her youth fighting Brazil's military dictatorship.
"This is a tragic hour for our country," said Rousseff, an economist and former Marxist guerrilla, calling her suspension an effort by conservatives to roll back the social and economic gains made by Brazil's working class.
The Workers Party rose from Brazil's labor movement in the 1970s and helped topple generals who had held power for two decades ending in 1985.
In the heady days of Lula's presidency, starting in 2003, it helped lift millions of people out of poverty before running into recession and scandal, with many of its leaders now tainted by corruption investigations and criminal convictions.
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Despite Rousseff's vows to fight, she is unlikely to be acquitted in the Senate trial. The size of the vote to try her showed the opposition already has the support it will need to reach the two-thirds majority required to remove her definitively from office.
"It is a bitter though necessary medicine," opposition Senator Jose Serra, who became the new foreign minister, said during the marathon Senate debate. "Having the Rousseff government continue would be a bigger tragedy."
ECONOMIC CHALLENGES
Temer aides said the incoming government would soon announce a series of austerity measures to help reduce a massive budget deficit. An immediate goal is a reform of Brazil's costly pension system, possibly setting a minimum age for retirement, said one advisor.
Brazilian markets, which for weeks have rallied because of expectations for a business-friendly Temer administration, traded similarly to a day earlier.
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Upon being notified of her suspension early Thursday, Rousseff dismissed her cabinet, including the sports minister, who is in final preparations for the Olympics in Rio de Janeiro in August. The central bank governor, who has ministerial rank, was the only minister to remain.
As suspended head of state, Rousseff can continue to live in her official residence, and is entitled to a staff and use of an Air Force plane.
Fireworks erupted in cities across Brazil after the Senate vote, but the country took the change in stride. Some celebrants in São Paulo and other cities draped themselves in Brazil's green, yellow and blue flag, while some Rousseff backers protested.
Temer, of the grab-bag Brazilian Democratic Movement Party, must stabilize the economy and restore calm at a time when Brazilians, increasingly polarized, are questioning whether their institutions can deliver on his promise of stability.
In addition to the gaping deficit, equal to more than 10 percent of its annual economic output, Brazil is suffering from rising unemployment, plummeting investment and a projected economic contraction of more than 3 percent this year.
"Only major reforms can keep Brazil from moving from crisis to crisis," says Eduardo Giannetti da Fonseca, an economist and author in São Paulo who has written extensively about the country's socioeconomic problems.
But those changes, including the pension effort, overhauls of tax and labor laws and a political reform to streamline fragmented parties in a mercenary Congress, could remain elusive at a time of turmoil.
Elected leaders from parties that had been in the opposition expressed optimism on Thursday that they could come together to help spur a recovery. Even some leftists said Temer may enjoy Congressional goodwill because, after his long experience there, he could ably negotiate with disparate parties and interests.
"Temer is someone who knows Congress, said Hugo Leal, a socialist Congressman from Rio de Janeiro. "He understands the logic."
Wild cards remain for Temer himself, including still-pending investigations by an electoral court into financing for his and Rousseff’s 2014 election campaign.
Then there is the far-reaching kickback probe around state-run oil company Petroleo Brasileiro SA (PETR4.SA), which has ensnared dozens of corporate and political chieftains, and helped set the scene for the discontent that engulfed Rousseff.
(Additional reporting by Paulo Prada, Brad Brooks, Alonso Soto, Leonard Goy and Silvio Cascione. Writing by Paulo Prada. Editing by Frances Kerry and Diane Craft)
Brazil's interim President Michel Temer smiles during a ceremony where he made his first public remarks after the Brazilian Senate voted to impeach President Dilma Rousseff at the Planalto Palace in Brasilia, Brazil, May 12, 2016.
Reuters/Adriano Machado==//==
This is Brazil's new leader: Michel Temer - BBC News
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Michel Temer: The man who now leads Brazil
By Daniel Gallas BBC South America Business Correspondent, Brazil
12 May 2016
From the section Latin America & Caribbean
Image copyright Reuters Image caption Michel Temer may soon be president
Until recently most Brazilians would have struggled to recognise Michel Temer if they were shown a picture of the vice-president.
But the 75-year-old law professor has played a key role in the impeachment proceedings against President Dilma Rousseff.
Under Brazil's constitution, he became acting president after the Senate voted in favour of launching an impeachment trial against Ms Rousseff, suspending her.
Mr Temer is a discreet politician who seems always to be hovering around the centre of everything important, yet - up until now - never in the spotlight.
But recently he has come out of the shadows, as a skilled politician intent on ending the Rousseff presidency and beginning a new era in Brazil.
Could Rousseff be impeached?
Where did it all go wrong for Rousseff?
A critical month ahead
What has gone wrong in Brazil?
Rousseff faces a perfect storm
Mr Temer's most notable achievement as a politician has been to help the country's biggest political party - the PMDB - form coalitions with every president in the past two decades. He is currently party president.
He presided over Brazil's lower house of Congress during the years of the Fernando Henrique Cardoso government (1995-2002), when Brazil underwent a liberal programme of privatisations and opening-up of the economy.
And under Luiz Inacio Lula da Silva (2002-10, known as Lula) and Ms Rousseff, he has played a key role in helping push forward their Workers' Party agenda of state-led investments.
But rather like his party, which has not held outright power for over two decades, Mr Temer has always been a kingmaker, but never king.
Both party and man avoid clear ideological positions, which leaves them in a comfortable position for negotiating their participation in coalitions of any political colour.
As Brazil's political crisis worsened and Ms Rousseff's Workers' Party bore most of the brunt for the many scandals in the country, the PMDB saw an opportunity to finally seize power.
For most of last year, as Ms Rousseff's situation deteriorated, Mr Temer kept a low profile.
Image copyright AP Image caption Mr Temer also worked with the government of Luiz Inacio Lula da Silva
But in December, things began to change.
The then-speaker of Brazil's lower house of Congress, Eduardo Cunha, also a PMDB politician, opened impeachment proceedings against Ms Rousseff for allegedly doctoring government public finances - an allegation the president denies.
A few days later, a bitter letter written by Mr Temer to Ms Rousseff was leaked to the press, in which he complained that he had been neglected in making key decisions in the coalition.
In March, the PMDB officially abandoned the coalition.
Open battle
In April, the battle between Mr Temer and Ms Rousseff for Brazil's top job finally came out into the open.
Mr Temer sent a WhatsApp recording to a few MPs with a draft of the speech he had prepared in case Ms Rousseff lost the 17 April impeachment vote in the lower house.
In it, he outlined how Brazil needed a "government to save the country".
Mr Temer said the message was sent by mistake, but Ms Rousseff accused him of deliberately releasing his speech.
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Furthermore she accused both Mr Temer and Mr Cunha of being "chief and vice-chief of a coup" against her.
Both men denied they were conspiring for Brazil's top job.
In the days leading to the 17 April vote, both Mr Temer and Ms Rousseff met dozens of lawmakers, with some accounts of tough negotiations of jobs and promises in exchange for votes in Congress from both sides.
So what could Brazilians expect now?
In October 2015, the PMDB launched a manifesto called Bridge to the Future, which outlined what policies they would defend within the coalition.
Most policies are popular with businesspeople and investors and would go a lot deeper into rebalancing Brazil's budget than President Rousseff has done so far - such as creating a minimum age for retirement, changing the scope of social programmes, opening up the oil sector, making labour laws more flexible and cutting mandatory spending in health and education.
However, many of those policies are likely to find a lot of resistance.
"It is the type of programme that even a government that was elected by the people with total legitimacy from the vote would have a very hard time approving in the middle of such a big crisis," says economist Laura Carvalho, from USP university.
"They will try to push that through and there's going to be a lot of resistance from social movements and labour unions."
Swiss bank accounts
Mr Temer has signalled he may approach the opposition PSDB party to secure a majority in Congress - but that would be a hard sell for many, as the majority of Brazilians rejected the party in the 2014 elections.
There are also questions of how Mr Temer would handle corruption investigations, as his party features prominently in many scandals, including the speakers of the Senate, Renan Calheiros, and the former speaker of the lower, Mr Cunha.
Mr Cunha was suspended from the post of lower house speaker earlier this month over allegations he tried to obstruct a corruption investigation against him.
Image copyright Getty Images Image caption Eduardo Cunha opened impeachment proceeding against Ms Rousseff
So far Ms Rousseff has refrained from intervening in the Federal Police and court investigations into alleged corruption at state oil firm Petrobras - even when the scandal caused serious damage to her party.
Would Mr Temer do the same?
He is not under direct investigation, but Mr Cunha - a powerful ally who has led much of the impeachment process that may benefit Mr Temer in the end - is alleged to hold millions of dollars in Swiss bank accounts. Mr Cunha denies the allegations.
There is a public outcry against Mr Cunha, so Mr Temer will be under pressure to turn against him and keep investigations independent.
During many occasions throughout the current crisis, Ms Rousseff has stressed that she was elected by 54.5 million Brazilians in 2014 and therefore has legitimacy to lead the country.
As her vice-president, Mr Temer indirectly received the same votes.
He will now lead the whole nation - even those who until a few weeks back did not even know who he was.
==//==
World | Fri May 13, 2016 12:13pm EDT
Related: World
Brazil's Temer calls for unity, confidence for Brazil recovery
BRASILIA | By Lisandra Paraguassu and Alonso Soto
Brazil's interim President Michel Temer called on his country to rally behind his government of "national salvation," hours after the Senate voted to suspend and put on trial his leftist predecessor, Dilma Rousseff, for breaking budget laws.
Temer, a 75-year-old centrist now moving to steer Latin America's biggest country toward more market-friendly policies, told Brazilians to have "confidence" they would overcome an ongoing crisis sparked by a deep economic recession, political volatility and a sprawling corruption scandal.
"It is urgent we calm the nation and unite Brazil," he said, after a signing ceremony for his incoming cabinet. "Political parties, leaders, organizations and the Brazilian people will cooperate to pull the country from this grave crisis."
Brazil's crisis brought a dramatic end to the 13-year rule of the Workers Party, which rode a wave of populist sentiment that swept South America starting around 2000 and enabled a generation of leftist leaders to leverage a boom in the region's commodity exports to pursue ambitious and transformative social policies.
But like other leftist leaders across the region, Rousseff discovered that the party, after four consecutive terms, overstayed its welcome, especially as commodities prices plummeted and her increasingly unpopular government failed to sustain economic growth.
In addition to the downturn, Rousseff, in office since 2011, was hobbled by the corruption scandal and a political opposition determined to oust her.
After Rousseff's suspension, Temer charged his new ministers with enacting business-friendly policies while maintaining the still-popular social programs that were the hallmark of the Workers Party. In a sign of slimmer times, the cabinet has 23 ministers, a third fewer than Rousseff's.
A constitutional scholar who spent decades in Brazil's Congress, Temer faces the momentous challenge of hauling the world's No. 9 economy out of its worst recession since the Great Depression and cutting bloated public spending.
He quickly named respected former central bank governor Henrique Meirelles as his finance minister, with a mandate to overhaul the costly pension system.
ROUSSEFF DEFIANT
The Senate deliberated for 20 hours before voting 55-22 early on Thursday to put Rousseff on trial over charges that she disguised the size of the budget deficit to make the economy look healthier in the runup to her 2014 re-election.
Rousseff, 68, was automatically suspended for the duration of the trial, which could be up to six months. Before departing the presidential palace in Brasilia, a defiant Rousseff vowed to fight the charges.
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In her speech, she reiterated what she has maintained since impeachment proceedings were launched against her last December by the lower house of Congress. She denied any wrongdoing and called the impeachment "fraudulent" and "a coup."
"I may have made mistakes but I did not commit any crime," she said.
Rousseff's mentor, former President Luiz Inacio Lula da Silva, who now faces corruption charges, stood behind her and looked on dejectedly. Even as outgoing ministers wept, Rousseff remained stolid.
"I never imagined that it would be necessary to fight once again against a coup in this country," Rousseff said, in a reference to her youth fighting Brazil's military dictatorship.
"This is a tragic hour for our country," said Rousseff, an economist and former Marxist guerrilla, calling her suspension an effort by conservatives to roll back the social and economic gains made by Brazil's working class.
The Workers Party rose from Brazil's labor movement in the 1970s and helped topple generals who had held power for two decades ending in 1985.
In the heady days of Lula's presidency, starting in 2003, it helped lift millions of people out of poverty before running into recession and scandal, with many of its leaders now tainted by corruption investigations and criminal convictions.
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Despite Rousseff's vows to fight, she is unlikely to be acquitted in the Senate trial. The size of the vote to try her showed the opposition already has the support it will need to reach the two-thirds majority required to remove her definitively from office.
"It is a bitter though necessary medicine," opposition Senator Jose Serra, who became the new foreign minister, said during the marathon Senate debate. "Having the Rousseff government continue would be a bigger tragedy."
ECONOMIC CHALLENGES
Temer aides said the incoming government would soon announce a series of austerity measures to help reduce a massive budget deficit. An immediate goal is a reform of Brazil's costly pension system, possibly setting a minimum age for retirement, said one advisor.
Brazilian markets, which for weeks have rallied because of expectations for a business-friendly Temer administration, traded similarly to a day earlier.
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Upon being notified of her suspension early Thursday, Rousseff dismissed her cabinet, including the sports minister, who is in final preparations for the Olympics in Rio de Janeiro in August. The central bank governor, who has ministerial rank, was the only minister to remain.
As suspended head of state, Rousseff can continue to live in her official residence, and is entitled to a staff and use of an Air Force plane.
Fireworks erupted in cities across Brazil after the Senate vote, but the country took the change in stride. Some celebrants in São Paulo and other cities draped themselves in Brazil's green, yellow and blue flag, while some Rousseff backers protested.
Temer, of the grab-bag Brazilian Democratic Movement Party, must stabilize the economy and restore calm at a time when Brazilians, increasingly polarized, are questioning whether their institutions can deliver on his promise of stability.
In addition to the gaping deficit, equal to more than 10 percent of its annual economic output, Brazil is suffering from rising unemployment, plummeting investment and a projected economic contraction of more than 3 percent this year.
"Only major reforms can keep Brazil from moving from crisis to crisis," says Eduardo Giannetti da Fonseca, an economist and author in São Paulo who has written extensively about the country's socioeconomic problems.
But those changes, including the pension effort, overhauls of tax and labor laws and a political reform to streamline fragmented parties in a mercenary Congress, could remain elusive at a time of turmoil.
Elected leaders from parties that had been in the opposition expressed optimism on Thursday that they could come together to help spur a recovery. Even some leftists said Temer may enjoy Congressional goodwill because, after his long experience there, he could ably negotiate with disparate parties and interests.
"Temer is someone who knows Congress, said Hugo Leal, a socialist Congressman from Rio de Janeiro. "He understands the logic."
Wild cards remain for Temer himself, including still-pending investigations by an electoral court into financing for his and Rousseff’s 2014 election campaign.
Then there is the far-reaching kickback probe around state-run oil company Petroleo Brasileiro SA (PETR4.SA), which has ensnared dozens of corporate and political chieftains, and helped set the scene for the discontent that engulfed Rousseff.
(Additional reporting by Paulo Prada, Brad Brooks, Alonso Soto, Leonard Goy and Silvio Cascione. Writing by Paulo Prada. Editing by Frances Kerry and Diane Craft)
Brazil's interim President Michel Temer smiles during a ceremony where he made his first public remarks after the Brazilian Senate voted to impeach President Dilma Rousseff at the Planalto Palace in Brasilia, Brazil, May 12, 2016.
Reuters/Adriano Machado==//==
SOURCE/LINK: http://www.economist.com/blogs/economist-explains/2016/05/economist-explains-9
The economist explains. Michel Temer's plans for Brazil
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The Economist explains
Michel Temer’s plans for Brazil
by J.P.
ON MAY 12th Michel Temer became the third Brazilian vice-president in 30 years to be thrust into the top job, after the Senate voted to commence the impeachment trial of the president, Dilma Rousseff. As she steps aside for up to 180 days while senators consider her fate, she leaves behind a mess. The country's economy may shrivel by 7.5% in 2015-16. Inflation and unemployment hover around 10%; so, as a proportion of GDP, does the budget deficit. The political system is a shambles, with Congress home to an unwieldy 25 political parties. What can—and should—Mr Temer do about it all?
He won’t be receiving congratulatory phone calls from foreign leaders just yet. Although Ms Rousseff is suspended from office, she clings onto the presidential sash until the upper chamber actually convicts her for the dodgy government accounting of which she stands accused. This looks likely: 55 senators voted to try her, already one more than the two-thirds needed to boot her out for good (four of the chamber’s 81 members did not vote). For the time being, though, she will hunker down in the Alvorada, as Brazilian presidents’ official home is known; Mr Temer stays in the Jaburu, a smaller residence next door in the capital, Brasília. But he will commute to the Planalto, the seat of presidential power—and enjoy all other prerogatives of the head of state, starting with picking his own administration (which includes the Central Bank governor) and shaping the legislative agenda.
Daily chart: A history of presidential impeachments
If his proposed cabinet is anything to go by, Mr Temer plans to replace Ms Rousseff’s confidence-stifling interventionism with market-friendlier policies. He appears commendably keen to chip away at Brazil’s bloated state. He has named a respected former Central Bank governor, Henrique Meirelles, as his finance minister and created a new super-ministry whose task is to spur private investment in Brazil’s shoddy infrastructure. The number of ministries is to be slashed from 32 to something like 23, to show that the government, not just citizens, can make sacrifices.
In principle, all this is welcome. In practice, Mr Temer may face an uphill struggle. To begin mending the economy, Mr Meirelles needs most urgently to tackle the vast budget deficit. Congressmen, never exactly keen on spending cuts and tax rises, may resist the necessary belt-tightening, especially in the run-up to October’s important local elections. And Mr Temer’s caretaker administration—which supporters of Ms Rousseff’s left-wing Workers’ Party regard as coup-mongering usurpers—lacks the voter legitimacy for more radical structural reforms, such as to Brazil’s overgenerous public pensions, rigid labour laws, byzantine taxes or graft-prone electoral system. That will still be the case if and when he is handed the keys to the Alvorada.
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==//==
SOURCE/LINK:http://www.noticialivre.com.br/index.php/ultimas-noticias/48181-brasil-itamaraty-repudia-criticas-de-paises-vizinhos-ao-impeachment
Brazil: Foreign Ministry rejects criticism from neighboring countries to impeachment
Details
Photo: Disclosure
The Foreign Minister, José Serra (Brazilian Social Democratic Party-PSDB), repudiated criticism from Latin American countries and the Secretary General of the South American Nations Union (UNASUR), Ernesto Samper, the impeachment of Rousseff. The new positioning for of the Foreign Ministry and is a distancing of countries whose governments maintain good relations with the Workers' Party (PT). In two notes, Sierra file points to Unasur, which warned of the risk of "instability" in Brazil spread to the region, and the governments of Venezuela, Cuba, Bolivia, Ecuador and Nicaragua. In national network radio and television, Venezuelan President Nicolas Maduro announced the convening of the country's ambassador to Brazil, Alberto Castellar. The principle of reciprocity should confirm the withdrawal of the Venezuelan diplomat, the Foreign Ministry may call back his ambassador in Caracas. (ESTADÃO)
==//==
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Last updated: May 13, 2016 3:03 am
Temer vows to protect Petrobras probe
Samantha Pearson in São Paulo and Joe Leahy in Brasília
Brazil’s new leader Michel Temer on Thursday pledged that investigations into corruption at Petrobras, the state-owned oil company, would be protected from political interference.
In his first speech as interim president since President Dilma Rousseff was this week suspended by the senate, he also promised to maintain social welfare spending for the poor and rein in a ballooning budget deficit by cutting some government jobs.
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“Lava Jato has become a point of reference,” he said, referring to the Portuguese name for the Petrobras investigation, which translates as Car Wash. “As such, it must continue and be protected against any attempt to weaken it.”
Analysts have expressed concern that the federal police, prosecutors and judges pursuing the investigation might come under pressure in a Temer administration.
The interim president’s PMDB party is deeply implicated in the scandal, with important party figures and allies of Mr Temer accused of accepting bribes in relation to Petrobras.
“It is urgent that we form a government of national salvation,” said Mr Temer in a ceremony at the presidential palace surrounded by his new cabinet and other supporters.
After more than 20 continuous hours of speeches, Brazil’s senators voted 55 to 22 to remove Ms Rousseff from office and put her on trial over allegations she broke Brazil’s budget laws. She is expected to be formally impeached within several months. It is the first time a Brazilian leader has been ousted in more than two decades, bringing the 13-year rule of the Workers’ party (PT) to an end as leftwing governments across Latin America fall out of favour.
Mr Temer, who was Ms Rousseff’s vice-president, took over as interim president immediately following her suspension, ushering in a new market-friendly government.
Ms Rousseff, who insisted on Thursday that she is the victim of a “coup”, will have the opportunity to present her defence during the Senate trial, headed by the Supreme Court president. But barring any new political developments, Brazil's senators are unlikely to change their minds, with the necessary two-thirds likely voting for her impeachment as the trial comes to an end later this year.
While investors will hope her exit marks the conclusion — or at least the beginning of the end — of one of the most turbulent periods of Brazil’s modern history, analysts warned the country faces a potentially dangerous power vacuum.
The vote may have been a defeat for the PT but the farcical events over recent months — including fist fights in Congress — have destroyed Brazilians’ faith in the entire political class, according to Juliano Griebeler, analyst at the Barral M Jorge Associates consultancy.
“It’s a tricky situation as it opens the way for ‘adventurers’ to come forward and take positions of power,” he says, looking ahead to the 2018 presidential election.
Eighty-nine per cent of respondents to a recent survey conducted in Brazil’s slums by the Data Popular consultancy said they could not think of a single person capable of rescuing the country from its crisis. Among the 11 per cent who could, the top choice was Pope Francis himself.
Meanwhile, Mr Temer has already begun the task of forming his government, announcing Henrique Meirelles, a respected former banker, as Brazil’s new finance minister and José Serra, a former presidential candidate for the more conservative PSDB party, as foreign minister.
Blairo Maggi, whose family is one of the biggest producers of soyabeans in Brazil, was appointed agricultural minister and Mr Temer’s ally Eliseu Padilha was named his chief of staff. Mr Temer is also expected by some to name Ilan Goldfajn, chief economist at banking group Itaú Unibanco, as central bank president.
His government is expected to capitalise on a rare moment of consensus in Brasília to push through fiscal reforms and austerity measures, including cutting Brazil’s number of ministries from 32 to 22.
“With state and local governments facing an acute fiscal crisis, the country in a deep multiyear recession and big business interests all aligned to impeached Rousseff, the sense of urgency in Congress to approve some reforms has gone up,” says Christopher Garman at Eurasia Group, the consultancy.
Yet as Mr Temer seeks to haul Brazil out of a deep recession and the PT fights to rebuild itself, the country’s core problem, its political dysfunction, will probably go unsolved, says Mr Griebeler.
“Our electoral system is organised in such a way that it is not capable of making the population feel represented,” he says, citing issues such as murky campaign finance and continued impunity in spite of advances made by the Petrobras investigation. “There’s little chance of moving forward with political reform, even in a Temer government,” he concludes.
Brazil
Dilma Rousseff vows to fight impeachment
Vice-president Michel Temer becomes acting president after Senate votes for trial
Read
One of the biggest risks facing Mr Temer includes the continuing investigation into Petrobras, with his own name mentioned in some witness testimony. Mr Temer will also face severe pressure from Brazil’s 35 political parties, most of which supported his rise.
Markets were also subdued following the ruling following sharp gains in the months leading up to the decision. “[This] will not eradicate the political uncertainty that has prevailed during a protracted process,” said Samar Maziad, a senior sovereign analyst at Moody’s. “Brazil still faces significant credit challenges.”
After months of political chaos that has at times bordered on comedy, alienating ordinary Brazilians and drawing ridicule abroad in the process, Thursday’s vote ended true to style.
After roughly 80 speeches, one man to cast his vote was Fernando Collor, the last Brazilian president impeached for corruption, in 1992, who has made a somewhat remarkable comeback as a senator.
“This is all a symptom of a supreme crisis, a moral crisis,” he said. “A new form of politics needs to be established . . . we need to turn the page”.
==//==SOURCE/LINK:http://www.noticialivre.com.br/index.php/ultimas-noticias/48181-brasil-itamaraty-repudia-criticas-de-paises-vizinhos-ao-impeachment
[PORTUGUESE VERSION]
Brasil: Itamaraty repudia críticas de países vizinhos ao impeachment
Detalhes
Foto: Divulgação
O ministro das Relações Exteriores, José Serra (PSDB), repudiou críticas de países da América Latina e do secretário- geral da União das Nações Sul- Americanas (Unasul), Ernesto Samper, ao impeachment de Dilma Rousseff. O posicionamento marca nova postura do Itamaraty e representa um distanciamento de países cujos governos mantêm boas relações com o PT. Em duas notas, a pasta de Serra cita a Unasul, que alertou para o risco de a “instabilidade” no Brasil se alastrar à região, e os governos de Venezuela, Cuba, Bolívia, Equador e Nicarágua. Em rede nacional de rádio e televisão, o presidente venezuelano, Nicolás Maduro, anunciou a convocação do embaixador do país no Brasil, Alberto Castellar. Pelo princípio da reciprocidade, caso se confirme a retirada do diplomata venezuelano, o Itamaraty poderá chamar de volta seu embaixador em Caracas.(Estadão)
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