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Weekly Report - 6 December 2007 (ISSN 1741-7422)

BRAZIL: Senate shenanigans over Calheiros and CPMF

The senate remained the main stage for Brazil's political squabbles this week - and is likely to remain so until the vote on extending the provisional tax on financial transactions (CPMF) is carried out. The CPMF vote was again undermined by the corruption allegations against Senator Renan Calheiros, who was forced to resign from the senate's presidency on 4 December in order to avoid punishment by his peers. The case has polarised the senate and given President Lula da Silva a headache. Lula is being forced to publicly defend the CPMF, a tax he objected to before coming to power but which is now central to his political ambitions. He ordered his allies not to attend the senate session that was supposed to seal the CPMF's fate on 6 December in order to gain more time to convince enough senators to extend the tax before it expires on 31 December.

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