Identifier
Created
Classification
Origin
07BRASILIA208
2007-02-06 17:22:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Brasilia
Cable title:  

BRAZILIAN POLITICAL ROUNDUP, JAN. 29-FEB. 5, 2007

Tags:  PGOV BR 
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UNCLAS SECTION 01 OF 03 BRASILIA 000208 

SIPDIS

SENSITIVE
SIPDIS

E.O. 12958: N/A
TAGS: PGOV BR
SUBJECT: BRAZILIAN POLITICAL ROUNDUP, JAN. 29-FEB. 5, 2007

REF: A. BRASILIA 107

B. BRASILIA 140

C. BRASILIA 149

UNCLAS SECTION 01 OF 03 BRASILIA 000208

SIPDIS

SENSITIVE
SIPDIS

E.O. 12958: N/A
TAGS: PGOV BR
SUBJECT: BRAZILIAN POLITICAL ROUNDUP, JAN. 29-FEB. 5, 2007

REF: A. BRASILIA 107

B. BRASILIA 140

C. BRASILIA 149


1. (SBU) Summary. The new Congress took office and each
house elected a leader from the pro-government coalition,
although the choice in the Chamber of Deputies widened a
painful split in the government's base. President Lula da
Silva must now find ways to repair the damage, and he may use
ministerial appointments to advance the process, or he may
reward the faithful. The large party blocs in the Chamber
took shape, but it is not clear they will last. The
government's bloc is larger than ever, with well over 50
percent of deputies. The opposition lost members, as some
deputies switched parties. End summary.

53rd Congress Opens in Atmosphere of "Renewal"
-------------- --


1. (SBU) The 53rd Congress of Brazil opened on February 1
with the swearing in of 513 Federal Deputies from 20 parties
in the Chamber of Deputies, and 81 Senators, 27 of them newly
elected or reelected, from 13 parties.


2. (SBU) Media coverage highlighted expectations that the
new Congress will be more "ethical" than the 52d Congress,
whose four years produced some of the worst and largest cases
of official corruption in Brazilian history, resulting in
numerous congressional committees of inquiry and the
resignations of cabinet ministers and members of Congress.
Federal Deputy Ricardo Izar (Brazilian Labor Party - PTB),of
Sao Paulo, chairman of the Chamber's Ethics Committee, told
the Chamber's news service on February 1 that "the last
Congress was the worst in the Chamber's history," and said he
hoped the next one would be better because 46 percent of the
deputies were new.

Congressional Leadership Elections
--------------


3. (SBU) The first order of business for the Senate and
Chamber of Deputies was the election of the leadership. The
Senate and Chamber of Deputies leadership consist of the
presidency, six lower positions, and four positions for
alternates. A heated contest for the Chamber presidency had
developed in the run-up to opening day, revealing a major
split in the government's base, which opened up the
opportunity for a third candidate from a major opposition
party. The Senate contest was a calmer, less divisive
exercise, and the opposition candidate never appeared likely
to win.

Emergence of Two Pro-Government Blocs

--------------


4. (SBU) In order to guarantee a position on the
leadership, in principle decided on the basis of
proportionality, two small parties, the Communist Party of
Brazil (PCdoB) and the Brazilian Socialist Party (PSB) )
both supporting incumbent Aldo Rebelo (PCdoB, Sao Paulo) for
president of the Chamber -- announced on January 17 they were
forming a bloc (ref A). Soon after, the Democratic Labor
Party (PDT),and two tiny parties, the National Mobilization
Party (PMN),and Party of the Nation's Retirees (PAN),joined
them. The bloc's strength is about 68 deputies. (Note:
numbers are inexact because some deputies are still in the
process of switching parties. We are using official Chamber
of Deputies figures.) The two other groups of allied parties
soon responded: The result was the formation a "megabloc" of
all the parties supporting the candidacy of Arlindo Chinaglia
(Workers Party - PT),of Sao Paulo, to be president of the
Chamber of Deputies, as well as another smaller bloc of
opposition parties.


5. (SBU) These parties make up the megabloc:

Brazilian Democratic Movement Party (PMDB)
Workers Party (PT)
Party of the Republic (PR)
Brazilian Labor Party (PTB)
Progressive Party (PP)
Christian Social Party (PSC)
Christian Labor Party (PTC)

BRASILIA 00000208 002 OF 003


Labor Party of Brazil (PTdoB)

(Note: Although in opposition to each other over the
leadership, Chinaglia's bloc and Rebelo's bloc are both
largely composed of parties officially in, or allied with,
the government coalition of President Lula, hence the split
in the government base. Political commentator and blogger
Fernando Rodrigues is calling Rebelo's bloc the "governistas
de oposicao," or the pro-government opposition.) The
"megabloc's" strength is estimated at 283 deputies, so large
that it was dubbed the "tectonic plate."

Opposition Bloc
--------------


6. (SBU) The new, real opposition bloc includes the
Brazilian Social Democracy Party (PSDB),the Liberal Front
Party (PFL),and the Socialist People's Party (PPS),with a
combined strength of about 140 deputies. It supported the
candidacy of Gustavo Fruet (PSDB, Parana) for the Chamber
presidency. The PFL was an eleventh hour addition, as its
Chamber leader, Rodrigo Maia, of Rio de Janeiro, had pledged
the PFL's support to Aldo Rebelo until January 31. A few
parties, notably the Green Party (PV) and Socialism and
Freedom Party (PSOL),remain outside the new blocs.

Chinaglia Wins Chamber Presidency
--------------


7. (SBU) In theory, the Chinaglia bloc should have been
able to win the presidency on the first round of voting,
since a win requires only a simple majority of 257, and his
bloc had 283 deputies.


8. (SBU) The result of the first round of voting was
Chinaglia, 236 votes, Rebelo, 175, and Fruet, 98. In the
second round, Chinaglia won with 261, while Rebelo came in a
close second with 243. Some observers said Chinaglia's
victory was only possible with PSDB support. Some PSDB
figures declared their support for Chinaglia in the second
round (including the new PSDB Chamber leader, Antonio Carlos
Pannunzio, of Sao Paulo),but blaming the PSDB begs the
question of why he didn't get more if his megabloc alone
should have garnered him 283 votes. The answer is probably
that many PMDB members bucked their party's commitment and
voted for Aldo. All sides expected some "treason," in spite
of party commitments, since the voting is secret.

Senate Presidency ) Pro-Government Incumbent Reelected
-------------- --------------


9. (SBU) Incumbent Senate President Renan Calheiros (PMDB),
of Alagoas, easily defeated challenger Jose Agripino (PFL,
Rio Grande do Norte) by 51 to 28. Agripino was the candidate
of the PSDB and PFL, which together have 30 senators.


11. (SBU) On February 1, the PFL, PSDB, and PPS formalized
an agreement to form an opposition bloc in the Senate, with
31 of the 81 Senators. A small number of Senators from other
parties, such as Jarbas Vasconcelos (PMDB),of Pernambuco,
are expected to vote with the opposition much of the time.

President's Message to Congress: Approve the PAC
-------------- ---


12. (SBU) On February 2 Congress held its opening ceremony
in a joint session in the Senate. Dilma Rousseff, chief of
the Civil Household, delivered a message from President Lula
that was read by the Chamber's first secretary. (Lula was in
Sao Paulo to attend Holocaust Remembrance ceremonies.)
Lula's message to Congress focused on the Accelereated Growth
Program ("PAC"; refs B and C),and he pledged his personal
attention to its success. Senate and Chamber Presidents
Calheiros and Chinaglia also spoke in support of the PAC,
although they noted that both houses of Congress will make
changes as they see fit.

PAC: Governors Want Federal Funds in Exchange for Support
-------------- --------------


13. (SBU) Twelve of Brazil's 27 governors met in Brasilia
on January 29 to draw up a list of financial demands that the
federal government would have to satisfy in order to win

BRASILIA 00000208 003 OF 003


their support for the Growth Acceleration Program. The price
tag comes to 15.5 billion reais (about USD 7 billion),
according to press reports. The governors would like to see
more federal revenues channeled to their states budgets,
certain types of tax relief, and relief for certain state
debts to the federal government. The gathering covered the
political spectrum, with eight from the government coalition
(four PMDB, two PT, one PP, and one PR) and the others from
the opposition (three PSDB, one PFL). The non-partisan
meeting was more about pork barrel than ideology. The
governors will formally present their demands to the Lula
administration in late March, according to media reports.
(Note: The PAC must be approved by Congress, not governors.
Governors can influence the process by controlling funds for
legislators' pet projects. End note.)

Party Switching: Coalition Wins, Opposition Loses
-------------- --------------


14. (SBU) Some deputies and senators switched parties after
election day on October 1, adding numbers to the government
coalition's side. (Party affiliation, especially in the
Chamber of Deputies, is a moving target, and continues to
evolve.) Numerically, the chief winner in the Chamber was
the Party of the Republic, a new party formed by the fusion
of the Liberal Party and the Party of the Reconstruction of
the Nation (PRONA). It gained eight or nine deputies. The
biggest loser was the PPS, which lost three seats. The
opposition bloc of the PSDB, PFL and PPS together lost about
eight seats. The most notable switches and those with the
greatest impact were in the Senate, where the switches, and
the return of one senator on leave, tipped the balance, gave
Lula's coalition a majority, and made the PMDB the largest
party, with 20 senators.


15. (SBU) Comment: The divisive Chamber presidency contest
left the coalition with wounds to tend. Lula said he will
try to help the healing process. But in practical terms it
also left him a dilemma, since there is a new alignment of
forces. Lula must choose whether to use his power to name
ministers and a government leader in the Chamber to reward or
assuage. Pressure from the PMDB and other coalition parties
for ministerial appointments has grown, and concessions could
likely be at the expense of the PT, which now holds several
ministries. It was conventional wisdom in January that
Rebelo, if defeated, would be appointed minister of defense.
But after Chinaglia's victory, Rebelo told media he would not
accept a position in the government. A leader of the
Chinaglia forces, Jose Mucio Monteiro (PTB, Pernambuco) is no
longer his party's leader in the Chamber, and his name has
surfaced in the media as a likely successor to Chinaglia as
government leader, a job that Lula himself will decide,
unlike other congressional leadership jobs. The alternative
would be to make a peace offering to the "pro-government
opposition" by selecting the acting government leader, Beto
Albuqueque (PSB-RS),who is close to Rebelo. Lula is not
giving signs as to how he will parcel out appointments. The
immediate impact of the rift on legislative activity may be
limited, but the real impact could come later if in 2010 the
split has not healed and the PT finds itself running against
a strong candidate from the PSB such as Federal Deputy Ciro
Gomes, of Ceara, as well as a PSDB candidate.

SOBEL