Bloomberg's Colitt on Impeachment of Brazil's Rousseff(Audio)

this morning. It's a bit behind schedule. Only twelve of the sixty three senators that signed up to speak have done so so far, so we're expecting this actually to go well into the night or the early morning hours of Thursday. UM. The latest polls show that the opposition will have the votes to have her stand a trial and and and stepped down temporarily, meaning that the Vice President, Michelle Tamer will will power takeover UM sometime on Thursday.

So what has been delmo recess biggest sin? Please explain to our listeners. Is it a recession? Is it a budget deficit that wants to get into control? Is it a taint of scandal that's a good question. I mean, technically, the charges against her in the Senate currently is for having illegally used tapped into state banks UH to finance a budget deficit. Now, obviously it goes much further than that. There's a sense that she mismanaged the economy in recent years.

The budget deficit, for example, tripled in only two years UM to to around ten per of GDP. Inflation is way above target, there's no investor confidence, UM, the economies in its worst recession in over a century. UM. So you get a picture of Brazilians are not happy. They're not happy with their president. And this is not entirely a legal process. In other words, it's not based only on legal facts, but it is also a political process. Hence it went to Congress and not to the Supreme

Court for her to stand trial. Can you outline the process of what happens next if indeed she is impeached? As I said that, we're expecting the vote sometime late to night early tomorrow morning. Then the Senate officially UH communicates the the vote to the president she will have to step down. The Senate also decides under what conditions

what kind of privileges does she maintain? If any she for example, she's likely to stay in the presidential palace but probably won't be able to, you know, use the presidential plane and those kinds of things. Then hours later the Vice President takes over UM as acting presidents and in essence that the country will be in his hands. A very few people expect rusself to be able to bounce back to find the support in in in the Senate to avoid a definitive ousta with a two thirds

majority in the Senate. So Raymon, tell us more about Vice President Michael Tamayer. Uh, there is a question of what kind of leader he would be. Delmo Roussef herself has accused him throughout this process of deliberately undermining her prolotting to get her out of office. What's he like? How would he? But what is for his prospects vetted in Brazil well, the financial markets, of course, UH see him very favorably. He's more of a business friendly UM

person than than Dilma was. Thema, of course, from a leftist party, from the Workers Party. UM. Timor has already outlined some of his economic policies. Downsized government, try to cut spending, give more room to the private sector, especially in the oil industry and telecommunications. So for for the

better part of this year, financial markets have been been rallying. Now, as we said, there are also some clouds hanging over Michelle timer Um One is several of his aids, closest allies within his own party are being investigated in the same corruption probe that essentially rattled Brazil's political establishment, including roussef In over the past two years. So that that is a big caveat that that he faces that some of his closest aids maybe become involved in the same

scandal as well. And the political establishment as a whole is not very popular. As a matter of fact, two thirds close to two thirds of the Brazilians are extremely disenchanted, and that is something that will make his life difficult when he tries to push for more austerity measures to

put the economy back on track. Thanks for spending time with us and bringing us up to date, Raymond call It is Bloomberg bureau chief in Brazilia and the Brazilian Ebovespa index, the stock index is up nearly four so far this year.