24 June 2011

BRASIL: Dilma's Programs Paralyzed...By Balking Coalition Party.

REUTERS / B. Winter

President Dilma Rousseff's agenda is paralyzed...by a strain with the PMDB, the biggest party in her coalition.

Everything from tax reform proposals...to prep for the 2014 World Cup...is in jeopardy.

Dilma has tried to unfreeze things...by appointing new ministers... and even inviting obscure party legislators to lunch. But, so far, with little success.

"Everything is frozen. It's bad. And it's not getting any better," said a senior source.

The PMDB is pissed...because early on Dilma refused to appoint its leaders to key governmental posts...and cut $30 bn of discretionary funds.