Temer may face truncated term in Brazil

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.