In Brazil, the Risk of Impeachment Looms Large

The ongoing corruption scandal at state-owned energy firm Petroleo Brasileiro, or Petrobras, could pose a real political risk to Brazilian President Dilma Rousseff, particularly as Brazil's economic conditions worsen. The ruling Workers' Party will have to cope with a stagnating, if not declining, economy for at least two more years, dwindling support for the president, difficult decisions on cutting government spending and the risk of criminal prosecution for key members.

However, the most immediate risk comes from other parties. As the political power of the Workers' Party deteriorates, other parties are likely to continue pushing for the president's impeachment over the next few months for their own benefit. Impeachment is unlikely at this point; the process is lengthy and depends greatly on the votes of individual congressmen and evidence uncovered by investigations. But the threat exists, and the Workers' Party will try to offset it by looking for support to counter any vote to open impeachment proceedings.