A Year of Political Instability for Brazil

If President Dilma Rousseff is impeached in the next few months, it is unlikely that a new administration will alleviate Brazil's wider economic problems. One of the key objectives for a new administration would be securing the congressional support necessary to pass legislation enabling the central government to cut social spending. Brazilian law sets constitutionally mandated minimum levels of government spending on education, health and other social outlays. Achieving the political support necessary to shift minimum levels could give the government more leeway to plan public expenditures amid a severe recession. But such a move is unlikely to endear the administration to poorer segments of society, and it is plausible that the Workers' Party could capitalize on resulting discontent. ...