Brazilian President Michel Temer will not stand trial for alleged corruption after the lower house voted against allowing the Brazilian Supreme Court to pursue charges against him. A formal request had been made by Brazil's General Prosecutor, Rodrigo Janot, for congress to authorize a probe into Temer. It is alleged that the Brazilian president negotiated bribes with the meat processing conglomerate JBS S.A. 

 

The Aug. 2 result is notable because it shows that despite having a record low approval rating for a Brazilian president, reaching 5 percent last week, Temer has been able to maintain congressional support to block the probe against him. Despite the lingering accusations of corruption, he will be able to stay in power, for the short term at least. Had the lower house approved corruption charges against Temer, he would have been removed from the presidency and tried by the Supreme Court. In that instance, the president of the lower house, Rodrigo Maia, would assume the presidency for up to 180 days until an indirect presidential election could be called by congress. 

 

Maintaining congressional support not only insulates Temer against further charges, but grants him the ability to get unpopular economic reforms approved. Key among the economic measures the government plans on sending to congress this year is a pension reform bill. This is a critical proposal given the fact that Brazil's pension system reported a deficit of almost $50 billion over the past year. This in turn puts more pressure on Brazil's growing fiscal shortfall, which is expected to reach 2.1 percent of the country's GDP this year. 

 

Temer is not yet of the woods, though, and more corruption charges could be levied against him in the coming weeks. Janot is expected to send further appeals for Temer's prosecution to congress before his term as the General Prosecutor expires in September. Should these charges gain traction, Brazil's lower house will have to hold another voting session. This could subsequently delay the government's efforts to speed up congressional approval for its economic reform package. Despite challenges to his power, it is likely that Temer will be able to keep his ruling coalition in congress largely united, allowing him to block any new corruption charges.