Brazil Supreme Court deal might keep Senate head in place: report
Reuters
Published Dec 07, 2016 07:41AM ET
Brazil Supreme Court deal might keep Senate head in place: report
By Anthony Boadle
BRASILIA (Reuters) - Brazil's Supreme Court is seeking an agreement to resolve a constitutional crisis that would let the indicted head of the Senate keep his post if he agrees to step out of the presidential line of succession, major newspapers reported on Wednesday.
The Supreme Court will meet at 2 p.m. (1600 GMT) to decide whether to uphold or overturn an injunction by one of its justices ordering the removal of Renan Calheiros as Senate president, after he was indicted for embezzlement last week.
Calheiros, whose mandate in charge of the chamber expires when Congress goes into its Christmas recess in a few days, refused to step down on Tuesday, heightening a standoff between the legislature and judiciary.
Calheiros is second in line to the presidency after the speaker of the lower house.
Amid fears that the crisis could derail the passage of a major reform to tackle Brazil's massive budget deficit, investors have been closely watching the situation. Until it is resolved, the Senate has suspended business.
The Brazilian real (BRBY) strengthened more than 1 percent in early trading as concerns eased that Calheiros' ouster could delay the approval of the constitutional cap on public spending growth.
The benchmark Bovespa stock index (BVSP) rose 0.5 percent in early trading.
Newspaper Folha de S.Paulo also reported that the man in line to lead the Senate if Calheiros steps aside, Senator Jorge Viana, was thinking of giving up his leadership role. The paper cited unnamed sources who spoke with Viana on Monday.
Viana, whose leftist Workers Party opposes the government's austerity agenda, was reported on Tuesday to be considering a suspension of all votes scheduled for this year if he were to assume the presidency of the Senate.
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Written By: Reuters
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