Economy / Brazil
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Problems Mount
August 2007 | Ratings UpdateSorry, you must be a subscriber to view this article in full. If you are a subscriber please login.
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President Luiz Inácio Lula da Silva is facing problems on all sides. First of all, one of his key allies and Senate President, Renan Calheiros, has been accused of corruption, which could weigh on the government's reform agenda in our view. Secondly, the aviation crisis will pose additional problems, particularly as this is the second major crash in the country in less than a year. Unless these obstacles get resolved quickly, we are concerned that President Lula's approval ratings may decline, which could delay Lula's reform drive.