Other emerging economies in Latin America and Africa have struggled this year with slumping Chinese demand for their commodities, but none is suffering as dramatically as Brazil, whose political and economic crises have inflamed each other.
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Rousseff is now battling single-digit popularity due to a vast corruption scandal at state-run oil firm Petrobras and an economy in a prolonged recession.
The petition accepted by Cunha accuses Rousseff of breaking Brazil’s fiscal responsibility law by approving a series of irregular accounting maneuvers aimed at shoring up last year’s fiscal results. The PMDB is a member of the governing coalition formed by the president, though it has distanced itself from the government in recent months.
“Statistics are saying that employers are discouraged from investing in this year of intense political turmoil and disorder in public finances”, said economics columnist Beth Cataldo on the G1 news portal. Two-thirds of the Senate would then have to vote to remove Rousseff.
The party’s deputy leader in the lower house, Henrique Fontana, said Cunha’s actions represent a break with democracy.
However, she has repeatedly said she will fight impeachment, which she calls a “coup plot”.
Politicking aside, the legal issues are not clear, experts say.
The lower house ethics committee is expected to open an investigation of Cunha next week with the backing of Rousseff’s Workers’ Party.
Brazil’s President Dilma Rousseff arrives for a news conference at the Planalto Palace, in Brasilia, Brazil Wednesday. The Eurasia political risk consultancy said pro-impeachment forces do not have the two-thirds votes in Congress to oust Rousseff, and gives her a 60 per cent chance of serving out her term.
Even if her opponents fail to muster enough votes to unseat Rousseff, their impeachment bid could not come at a worse time for her weakened government as it heightens political uncertainty and market volatility.
Currencies painted a more mixed picture, as Fed chair Janet Yellen said she was “looking forward” to raising rates, but European Central Bank chief Mario Draghi appeared set to announce more stimulus measures later on Thursday. It also says her re-election campaign received money stemming from a kickback scheme at state oil company Petrobras.
-A special commission of 66 members of the House of Deputies, with representatives from all political parties, will be formed to decide whether impeachment proceedings should go before the full lower house.
The defeated opposition candidate in last year’s presidential election, Senator Aecio Neves, has tweeted that he supports the impeachment request.
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But his power to start impeachment proceedings has given him a trump card against Ms Rousseff.
