By Thomas Favaro, Special for USDR.
Eduardo Cunha, speaker of the Chamber of Deputies, on 2 December opened an impeachment proceeding against President Dilma Rousseff. Cunha accepted a request filed by three prominent jurists and supported by the opposition Brazilian Social Democratic Party (PSDB), which contends that the Rousseff administration breached fiscal discipline legislation in 2014 and 2015.
The development represents a critical political defeat for Rousseff and the ruling Workers’ Party (PT). The government has been unable to address the chronic issues eroding Rousseff’s approval ratings – currently at a mere 10%, according to the latest poll – including an economic recession, an ongoing corruption scandal and the implementation of an unpopular austerity plan.
Members of Congress are expected to take weeks until they reach a final decision, meaning that high levels of political uncertainty will continue to pose a significant challenge for businesses.
|Thomaz Favaro is Control Risk’s associate director. Based in São Paulo, he analyzes political, operational and security risks in the country, and previously worked as a journalist in Brazil and Argentina|