power in Brazil to replace the disastrous Dilma Rousseff government presenting numerous weaknesses, very few strengths and very many threats to its success.It seems that Michel Temer will not have enough time to reverse the economic collapse of Brazil. Considering the Michel Temer inability to resolve the economic crisis and Dilma Rousseff incapacity to achieve this goal if she comes back to power after no impeachment in the Senate may emerge a scenario of uncontrollable political, economic and social chaos in Brazil. This scenario should be characterized by a permanent state of violence in the social environment in the country. To build social peace in Brazil will need to call new elections or a Constituent Assembly Exclusive to reorder the national life, seek the country's consensus in resolving the economic and social crisis, prevent the escalation of violence in Brazil and hold new general elections in the country.

1. 1
CHALLENGES OF MICHEL TEMER GOVERNMENT IN BRAZIL
Fernando Alcoforado *
Michel Temer government takes power in Brazil to replace the disastrous Dilma
Rousseff government presenting numerous weaknesses, very few strengths and very
many threats to its success. Strengths of Michel Temer government lie in the fact of
being able to count on one hand, with the parliamentary majority in Congress as
evidenced by the victory of impeachment in the House of Representatives and the
Senate and, secondly, with the confidence of the holders of capital linked to production
and domestic financial sectors. The conquest of the parliamentary majority in Congress
was consolidated with the assembly of the new government ministry that was occupied
mostly by parliamentarians from various parties.
Among the Michel Temer government's weaknesses include the following: 1) the new
government ministry does not convey credibility among the population because, with
rare exceptions, all members of the failed Dilma Rousseff government, including his
own acting president, are share responsibility for economic bankruptcy of the country,
some of them being investigated by Lava Jato Operation that investigate corruption in
Brazilian government; 2) not set up a government ministry composed of persons of
recognized competence and integrity to earn the trust and respect of the nation; 3) new
government's difficulty to get the support of civil society by the fact that Michel Temer
have a pattern of rejection very close to the of Dilma Rousseff; 4) does not have the
support of the people because it is a government that did not emerge from the polls or a
social pact to give support to a government of national salvation as want Michel Temer;
and 5) the ministerial composition announced does not reflect the will of the nation
which hinders the formation of a government of national unity.
Among the threats to the Michel Temer government include the following: 1) the
difficulty of solving the short term the huge economic crisis in Brazil; 2) the difficult
bankruptcy situation of the Union, states and municipalities that endangers the national
federative unit; 3) the frontal opposition of social movements that supported the Dilma
Rousseff government to paralyze it and make Rousseff return to power in the next 6
months; 4) social movements in favor of impeachment of Rousseff may arise against the
new government if it demonstrated inability to solve the economic crisis in the country;
5) the emergence of uncontrollable political and social chaos in the country as a result
of worsening economic crisis; 6) the process of impeachment against Rousseff in the
Senate may result in the return of Dilma Rousseff to power and put the need to hold
new presidential elections or the conclusion of a new constituent in Brazil; and 7) the
lack of solution to the economic, political and social crisis can lead to the end of the
new government and put the need to hold new presidential elections or the conclusion
of a new Constituent Assembly in Brazil.
The key to the success of Michel Temer government to face the threats described above
is to be successful in addressing the solution of the economic crisis affecting Brazil.
Therefore, the Michel Temer government made to reduce the number of ministries
signaling to promote drastic reduction of government spending, improving the
economic environment and reversing the growth of unemployment in the country. In
order to reduce the public deficit, the Michel Temer government signals in order to raise
current taxes or create new taxes, and perform the pension reform all of them unpopular.
A measure intended to revive the economy is the public service concessions program or
privatization that the new government wants to launch continuing to held in Dilma

2. 2
Rousseff government. The most urgent task of the new government is, however, reverse
the explosive trajectory of the public debt, now 67% of GDP and which is expected, can
reach 90% of GDP in 2021.
It is likely that Temer government create the conditions for a sharp reduction in Selic
basic interest rates of the economy to prevent the uncontrolled rise of public debt and
the fall of the banking system's interest to promote the retake of investment and,
consequently, increase employment and income population. According to the Economy
Minister, Henrique Meirelles, "the retake of sustainable growth, which can and should
unite the country at the moment, will come from the adoption of credible and feasible
measures to balance public accounts, restore confidence, provide predictability and
unlock investments. And with them come back employment, income, consumption and
social inclusion, creating a virtuous cycle in the economy" (See the article by Henrique
Meirelles A hora da verdade [The moment of truth), published on 15.05.2016, available
on the website <http: // www1.
folha.uol.com.br/colunas/henriquemeirelles/2016/05/1771325-a-hora-da-
verdade.shtml>].
To avoid raising taxes or creating new ones, the Temer government will need to
generate the resources necessary to cover their costs and make investments in economic
and social infrastructure of the country. In this regard, the Brazilian government should
dramatically reduce the Selic rate today corresponding to 14.25% and renegotiate the
payment of the internal debt service with its extension in time. It should be noted that
the renegotiation of the terms of the domestic debt is essential. Without the adoption of
this measure the Brazilian government will not be able to promote the country's
economic growth given that almost half of the Brazilian government budget has been
allocated in recent years to pay the costs of the public debt.
To reduce public spending, it is essential to carry out cuts of unnecessary expenditure,
as well as a thorough administrative reform to rationalize the public administration in
the country and contribute also to the elimination of waste and the reduction of public
service costs. The implementation of a model of efficient and effective management for
the Brazilian State should make its tax collection capacity is expanded. The new
management model based on the rationalization of work processes will inevitably lead
to reduction of state operating costs and, consequently, the tax burden on taxpayers.
Without putting into practice this set of measures, the Brazilian government will not
acquire the ability to invest in the expansion of the economy and to adopt social
compensation policies at the level necessary to mitigate the social inequality in Brazil.
It seems that Michel Temer will not have enough time to reverse the economic collapse
of Brazil. Considering the Michel Temer inability to resolve the economic crisis and
Dilma Rousseff incapacity to achieve this goal if she comes back to power after no
impeachment in the Senate may emerge a scenario of uncontrollable political, economic
and social chaos in Brazil. This scenario should be characterized by a permanent state of
violence in the social environment in the country. To build social peace in Brazil will
need to call new elections or a Constituent Assembly Exclusive to reorder the national
life, seek the country's consensus in resolving the economic and social crisis, prevent
the escalation of violence in Brazil and hold new general elections in the country.
* Fernando Alcoforado, member of the Bahia Academy of Education, engineer and doctor of Territorial
Planning and Regional Development from the University of Barcelona, a university professor and
consultant in strategic planning, business planning, regional planning and planning of energy systems, is

3. 3
the author of Globalização (Editora Nobel, São Paulo, 1997), De Collor a FHC- O Brasil e a Nova
(Des)ordem Mundial (Editora Nobel, São Paulo, 1998), Um Projeto para o Brasil (Editora Nobel, São
Paulo, 2000), Os condicionantes do desenvolvimento do Estado da Bahia (Tese de doutorado.
Universidade de Barcelona, http://www.tesisenred.net/handle/10803/1944, 2003), Globalização e
Desenvolvimento (Editora Nobel, São Paulo, 2006), Bahia- Desenvolvimento do Século XVI ao Século XX
e Objetivos Estratégicos na Era Contemporânea (EGBA, Salvador, 2008), The Necessary Conditions of
the Economic and Social Development-The Case of the State of Bahia (VDM Verlag Dr. Muller
Aktiengesellschaft & Co. KG, Saarbrücken, Germany, 2010), Aquecimento Global e Catástrofe
Planetária (P&A Gráfica e Editora, Salvador, 2010), Amazônia Sustentável- Para o progresso do Brasil e
combate ao aquecimento global (Viena- Editora e Gráfica, Santa Cruz do Rio Pardo, São Paulo, 2011),
Os Fatores Condicionantes do Desenvolvimento Econômico e Social (Editora CRV, Curitiba, 2012) and
Energia no Mundo e no Brasil- Energia e Mudança Climática Catastrófica no Século XXI (Editora CRV,
Curitiba, 2015).