Once again, the Brazilian Congress voted against allowing the Supreme Court to try President Michel Temer for alleged corruption. Having escaped prosecution, Temer now has a clear path down which to push his economic reform proposals. However, corruption allegations against members of Temer's Cabinet will likely force him to continue to rely on his ruling coalition in Congress to stave off impeachment threats until next year's presidential election.
Brazil's attorney general accused Temer of obstruction of justice and of leading a criminal organization based on kickback schemes. But on Oct. 25, the lower house rejected the attorney general's request to try Temer. The opposition needed 342 votes out of 513 to take Temer to trial. But, it received only 233 votes; 29 lawmakers abstained from the vote.
Despite his legal battle, Temer has been steadfast in his efforts to enact economic liberalization reforms, and Congress' decision to reject the corruption charges against Temer will allow the government to focus on approving the economic reforms instead. One of the main focuses is breaking Petrobras' monopoly over certain sectors of the energy industry, such as natural gas. Other reforms include a privatization plan, which will involve over 60 state-owned companies and assets, and much-needed pension reform to reduce Brazil's fiscal deficit, which is likely to reach almost three percent of Brazil's total gross domestic product. Of the proposals, pension reform will likely be the most difficult to pass since it requires the approval of three-fifths of Congress. But its passage will be vital to Brazil's economic recovery, considering the government's pension system reported an almost $50 billion deficit last year.
With the most recent corruption charges behind him, Temer will try to remain in power until his term expires in December 2018. But the leader's troubles are far from over. Several other members of his Cabinet are facing their own corruption investigations, which will weaken the ruling Brazilian Democratic Movement Party in next year's presidential election. Though Temer is unlikely to seek re-election, his party may announce a presidential candidate or back another party's candidate. And as Brazil's campaign season gears up, many opposition parties are likely to begin announcing their presidential candidates as well, promising for a heated electoral contest in 2018.
