Lula finally managed to convince investors that he is committed to economic growth. But a widening corruption scandal threatens to discredit his work.
Brazil is no stranger to turbulence,
but the shockwaves hitting the country since the beginning of
June are something out of the ordinary. President Luiz
Inácio Lula da Silva's ruling Workers Party (PT) was
once a byword for probity in Brazil's notoriously seedy body
politic. Now PT bosses stand accused of orchestrating the
systematic and widespread bribery of ruling coalition
lawmakers. If it becomes clear that Lula himself knew what was
going on, then his chances of reelection in October 2006
once a given will become remote and his government could
Lula initially promised the government would "cut its own
flesh" if necessary to get to the truth of the allegations. In
late July, however, in what seemed an attempt to stifle
investigation, he warned that Brazil's economy "is still very
vulnerable" and cautioned against "playing around in this area
so that we don't take...
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