Home Corruption How the world sees Brazil’s governance crisis

How the world sees Brazil’s governance crisis

President says political support is strong enough to pass key pension reform

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The credibility of President Temer has been shaken ever since Joesley Batista revealed a disturbing dialogue between him and Temer. During the conversation, Joesley talks about bribery, manipulation and buying of witness, connivance with judges and several other crimes.

Temer participates in the dialogue and demonstrates agree to interlocutor. Even more serious, Temer indicates an advisor to receive $ 500,000 as a portion of a larger bribe. The advisor is a federal deputy who has been tracked by the Federal Police receiving the bribe. Even so, Temer insists on remaining as President and pleads innocence.

The Financial Times newspaper publish today an article on the Temer government current moment and revealed details about the official discourse ambiguities.

Financial Times:

Brazil’s Temer says coalition steady despite bribery allegations

Brazil’s President Michel Temer has said that support in his ruling coalition remains firm enough to pass key reforms, including flagship pension changes, despite a corruption scandal that has threatened to engulf his government.

In his first comments to the foreign media after a recording showing him allegedly discussing bribes surfaced nearly two weeks ago, Mr Temer said that despite the defection of one mid-sized party, the PSB, the rest of his sprawling coalition in congress remained solid.

“That [the controversy over the tape] has perhaps created the idea that maybe the parties are not behind me but not one party has come to me saying they won`t support me,” he told a briefing for foreign correspondents in São Paulo on Monday.

The tape recording, made by the former chairman of meatpacker JBS, Joesley Batista, during a late-night conversation with Mr Temer in March, sent markets plunging when it was released.

The president has questioned the veracity of the tape and denied further allegations contained in a plea bargain signed by Mr Batista with public prosecutors. In the meantime, the government has sought to portray an air of business as usual while mounting a charm offensive to attract investors.

Brought to power by the impeachment of his leftist predecessor, President Dilma Rousseff, Mr Temer is one of Brazil’s most unpopular presidents, according to opinion polls.

But his fiscal reforms to restore Brazil’s sinking public finances and lift Latin America’s largest economy out of its worst recession on record have won market support. The most important of these reforms is the proposed overhaul of the over-generous pension system.

Analysts remain sceptical the Temer government will survive. “The government is hanging from a thin thread,” said Jimena Blanco, head of Latin America research at Verisk Maplecroft, a risk consultancy.

But in the interview with foreign correspondents, Mr Temer said he was confident he could still govern and garner the three-fifths of congress — 308 votes — needed to get the pension reform through.

“We will get there,” he said, without providing a timetable for a vote.

When the controversy erupted, there was speculation that Mr Temer might resign immediately, in which event a caretaker president would be chosen by a vote in congress and would serve until elections next year.

But with the president managing to survive the initial days of the scandal, attention is turning now to a separate case in the country’s electoral court, the TSE, which will decide in a hearing starting on June 6 whether to terminate his mandate.

Originally brought by the centre-right PSDB, then an opposition party but now the Temer government’s most important coalition partner, the case in the TSE will decide whether Ms Rousseff’s campaign used illegal finances in the last election in 2014.

Mr Temer at the time ran on Ms Rousseff’s ticket as her vice-president.

“Our political desire is that this is decided quickly,” Mr Temer said. He declined to comment on whether he would appeal against a decision to terminate his mandate.

Earlier, Aloysio Nunes, the foreign minister and a senior member of the PSDB, reaffirmed the party’s support for the Temer government, despite reports it was reconsidering its place in the coalition.

“There’s no one better than President Temer to conduct these reforms,” he said in a briefing with foreign correspondents.

Henrique Meirelles, the finance minister, said he was operating on the assumption that Mr Temer “would continue” but said Brazil could weather a delay in the pension reform as long as it was passed in some form by 2020.

“The Temer reforms today have become a national agenda,” he said.