ASSESSMENTS

Brazil's President Strikes a Deal With Her Allies

Oct 1, 2015 | 09:15 GMT

Brazil's President Strikes a Deal With Her Allies
Brazilian President Dilma Rousseff arrives at Planalto Palace in Brasilia on Sept. 17.

(EVARISTO SA/AFP/Getty Images)

Summary

Brazil's ruling party has had a difficult year, and its political rivals are looking to leverage the party's troubles to their advantage. Falling commodity prices and diminishing Chinese demand have left Brazil's economy in tatters, and the country's leaders have several difficult choices ahead if they are to mitigate the ongoing economic crisis. But disagreement between Brazilian President Dilma Rousseff's Workers' Party and the Brazilian Democratic Movement Party (PMDB) — the two most powerful parties within the ruling coalition — could threaten any efforts to make the tough reforms needed to get Brazil's economy back on track.

With an upcoming Cabinet reshuffle expected on Oct. 1, the PMDB will likely try to pressure Rousseff into granting it as many as seven ministerial posts in exchange for its support for the president's proposed economic measures. Public approval ratings for Rousseff's Workers' Party are low amid corruption scandals and a flagging economy. Because of this, the party cannot afford to lose its biggest political ally — particularly one that holds the power to prevent Rousseff's removal from office. Therefore, the president will likely yield to the PMDB's demands and cede it greater power within the Cabinet in hopes of holding the coalition together and protecting herself from the looming threat of impeachment.

The ruling Workers' Party cannot afford to lose its most important coalition partner -- especially since it has the power to block the president's impeachment. ...

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