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Weekly Report - 26 May 2011 (WR-11-21)

BRAZIL: Trouble in paradise

President Dilma Rousseff's political honeymoon is over. It has been a bad few weeks for the novice administration, which is fire fighting on several fronts, including a festering ethics scandal involving Rousseff's second in command, the minister of the presidency, Antonio Palocci, a case that has finally given the shrunken opposition something into which to sink its teeth. More worryingly, cracks are emerging in the broad 11-party coalition that supports Rousseff. Emboldened, deputies are venting their frustration with Rousseff's top-down managerial style by refusing to toe the line and this week the main government ally, the Partido do Movimento Democrático Brasileiro (PMDB), handed the executive a humiliating defeat in congress over controversial reforms that weaken the country's forestry code.

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