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Temer may face truncated term in Brazil

Friday, May 19, 2017

Significance

The tape recording allegedly implicating Temer is linked to a plea bargain by meatpacking giant JBS. Social Democrat (PSDB) Senator Aecio Neves, now an ally who narrowly lost the 2014 presidential election, is also implicated; properties owned by him were searched by police yesterday, and the procurator general has called for his detention.

Impacts

  • Temer’s fate may depend in part on the extent of popular protests demanding his departure.
  • There is no clear successor, with most leading politicians tainted by graft claims.
  • Events will undermine reform prospects and most likely extend the two-year recession.
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