Political Risk Latin America Blog @PolRiskLatam

Dilma faces first Congress test

Posted in News and Articles, Political Risk by politicalrisklatam on February 16, 2011

by Joe Leahy for Financial Times – Beyond Bric, February 15th, 2011.

No sooner had Guido Mantega, Brazil’s finance minister, finished a teleconference with the international media and analysts on Brazil’s agenda for the G20 than he moved onto the next big fight for the new government – the minimum wage.

Brazil’s Congress is set to decide as early as Wednesday on a government proposal to increase the wage by about 6.9 per cent in nominal terms to R$545. Adjusted for inflation, which is running at near to 6 per cent, this will represent a very restrained pay rise indeed for Brazil.

The vote will be the first test in Congress of Dilma Rousseff, Brazil’s new president, who is seeking to make a break with the spendthrift ways of the government over the past two years. She lacks the popularity of her predecessor, Luiz Inácio Lula da Silva, prompting concern that she might have more trouble getting difficult issues through Congress. (continue reading… )



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