Crs Report for Congress

On January 1, 2007, Luis Incio Lula da Silva, of the leftist Workers Party (PT), was inaugurated for a second four-year term as President of Brazil. Lula was re-elected in the second round of voting with fairly broad popular support. His immediate tasks were to boost Brazils lagging economic growth and address the issues of crime, violence, and poverty. Despite President Lulas personal popularity, many predicted that inter-party rivalries within his governing coalition would make it hard for him to push his agenda through Brazils fractured legislature. President Lula has enjoyed high approval ratings and benefitted from a strong economy throughout most of his second term. The global financial crisis, however, has slowed Brazils economic growth and is threatening to erase the social gains made in recent years. President Lula has implemented countercyclical policies to boost the economy and protect those most exposed to the effects of the economic downturn. A number of analysts believe it is unlikely that the Brazilian Congress will act on Lulas stalled legislative agenda given the need to address the effects of the financial crisis and the political parties increased focus on the October 2010 presidential election. During the first Lula term, Brazils relations with …