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Business: Economic Overhaul at Risk as Temer Arrest Roils Brazil Politics

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Business: Economic Overhaul at Risk as Temer Arrest Roils Brazil Politics By Bloomberg

Temer, 78, became the second former Brazilian head of state after Luiz Inacio Lula da Silva to be arrested by the so-called Carwash probe that has brought down swathes of the nation’s business and political elite. Former Energy Minister

Brazilian markets sank as news of Temer’s arrest sent shock waves across Brasilia, where lawmakers have begun analyzing the government’s pension reform bill; an unpopular piece of legislation deemed vital to shore up Brazil’s battered public finances. While the medium and long-term consequences remain unclear, in the short-term the arrests create another major distraction from the increasingly urgent task of rescuing Brazil’s anemic recovery.

The leader of the opposition in the Chamber of Deputies, Alessandro Molon, said that the arrests “create a certain amount of trouble here in the lower house that will inevitably impact the progress of the pension reform that’s going badly.”Prosecutors accused Temer of “leading a criminal organization” that received or was promised more than 1.

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