Power vacuum is a growing risk in Brazil

Significance

The amendment is a flagship policy of President Michel Temer in his attempt to address Brazil’s fiscal crisis. However, the government’s victory was qualified, as the initiative was backed by fewer senators than in the first vote in late November, suggesting ebbing Congress support for the administration.

Impacts

• Early presidential elections are unlikely but remain a possibility.
• Support for Temer's coalition in Congress is shakier than ever and may become more so.
• There is no guarantee Congress will pass the pension reform, another crucial policy in Temer’s agenda.