Weekly Report - 29 November 2007 (ISSN 1741-7422)

President Lula da Silva lost his second minister of the year last week. The institutional affairs minister, Walfrido Mares Guia, tendered his resignation to Lula after the prosecutor general asked the supreme federal tribunal to investigate alleged electoral corruption in 1998. Lula did not attempt to dissuade Mares Guia from leaving but it is a blow for his government, not least because the ministry of institutional affairs performs an important function for Lula as the bridge between the government and congress. José Múcio Monteiro picks up the portfolio. His main challenge will be persuading congress to approve the tax on financial transactions (CPMF).