Local elections’ outcomes in Brazil undermine the new government under Michael Temer

Two local elections in Brazil showed how uncertain the political future of the country is and how impactful the scandals at Petrobras have been for the political future. Two major political parties, one backed by ousted and impeached President Dilma Rousseff and the other one backed by incumbent President Michel Temer.

Dilma Rousseff’s workers’ party (PT) got ousted from power in the city of Sao Paolo and Michel Temer’s Brazilian Democratic Movement Party (PMDB) from the city of Rio. These two parties formed an alliance after the last election, however, as Rousseff got hit by scandals at Petrobras, Temer, who has also been named in the scandal moved out of the government and became the President until the next election as Rousseff got impeached.

The elections results showed that Michel Temer’s Presidency may last only until the next election in 2018 and the opposition PSDB, which won 53.3 percent in Sao Paolo or PSOL that won Rio could come to power.

Brazilian Real is currently trading at 3.26 per dollar.