Markets are bracing for another tense day in Brazil after Congress on Wednesday postponed a vote that analysts say could have kept the country’s shaky finances from getting even worse.
Lawmakers seemed on track to ratify President Dilma Rousseff’s vetoes of spending bills that could add an estimated 127.8 billion Brazilian reais ($32.3 billion) to an already large budget gap. But after a full day of intense political fighting, legislators couldn’t agree on going ahead with the vote, to investors’ chagrin.
“It is terrible news,” economist Monica De Bolle, from a visiting fellow at the Peterson Institute for International Economics in Washington, D.C., said about the delay. “It shows that there is no understanding between the president” and her allies in Congress. “We are looking at another day of turbulence in the markets,” she said.