A brewing constitutional crisis in Brazil could threaten to derail President Michel Temer’s fiscal reform agenda as he works to implement austerity measures to reduce the country’s budget deficit.
On Tuesday, the head of Brazil’s Senate, Sen. Renan Calheiros, a Temer ally, continued to defy a Supreme Court ruling that stripped him of his post. The decision by a high-court judge followed Calheiros’ indictment last week on embezzlement charges.
Senate leaders met on Tuesday to consider the judge’s ruling and later backed Calheiro’s refusal to step down. Lawyers for the legislative body filed an appeal, requesting the Supreme Court make a final decision.
In comments to reporters, Calheiros criticized the judicial decision to remove him from office. “Democracy doesn’t deserve this, not even in Brazil,” he said.
The showdown reflects escalating political tensions in Brazil, months after the impeachment of former President Dilma Rousseff and the removal of the former speaker of the lower house, Eduardo Cunha, who led the efforts to oust her.
If Calheiros is removed from office, he would be replaced by opposition Sen. Jorge Viana, a member of the Worker’s Party (PT), which has voiced opposition to government-backed legislation aimed at putting a cap on federal spending. Last week, in a preliminary vote, lawmakers approved the plan, a key element of Temer’s efforts to overhaul the budget and rein in the budget deficit. A final vote is scheduled for December 13.
Hoping to move ahead with his reform plan, Temer on Monday also unveiled a proposal to overhaul Brazil’s pension system. The plan, which needs congressional approval, would raise Brazil’s retirement age to 65 and reduce spending by about $200bn between 2018 and 2027, according to government officials.
However, given the political turmoil in the Senate, it was unclear when a vote on that proposal might take place.