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Brazil government clashes with top ally 2 BRASILIA, Brazil
Published in Saudi Press Agency on 15 - 04 - 2005

wing Progressive Party, won the lower house presidency in February amid complaints Lula used decrees -- which go into effect immediately but must be voted on in 45 days -- to bypass Congress and ignore allies.
Economists fear coalition partners may vote against the government and opt for legislation that increases public costs -- at a time when investors fear fiscal controls are slipping -- unless Lula gives more jobs and influence to allies.
In March, coalition and ruling Workers Party deputies defeated unpopular government tax hikes to cover tax cuts. That left a 2.5 billion reais ($965 million) hole in public accounts.
Lula has begun to rebuild support by handing second-tier posts to allies. Cavalcanti's son got a federal farm agency job on Monday.
The PMDB has yet to win any such posts, let-alone cabinet positions, after Lula curtailed the March reshuffle as allies fought for jobs and threatened to leave the government.
PMDB grumbles turned to opposition on Tuesday as senators voted against the government choice to head Brazil's oil regulatory agency.
--More 0044 Local Time 2144 GMT


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