Brazil's President Dilma Rousseff has let her Defence Minister Nelson Jobim go after he made disparaging remarks about fellow ministers. Jobim reportedly called one fellow minister a "weakling" and described others as "idiots".

Jobim is the third minister to lose his job since Rousseff's inauguration in January. He will be replaced by former foreign minister Celso Amorim. Jobim is one of several ministers who also served under Rousseff's predecessor, Luiz Inacio Lula da Silva.

It has been reported in recent weeks that Jobim has been making crude remarks about fellow ministers; he went even further at an opposition event by saying he was surrounded by "idiots".

There has also been speculation that Jobim was disgruntled with Rousseff for overruling him on a multi-billion dollar contract to buy fighter jets. He caused further controversy when he admitted in a television interview that he had voted for Rousseff's opponent Jose Serra in last year's presidential election.

Jobim is the third minister to go since Rousseff took office on 1st January. Last month, her Transport Minister Alfredo Nascimento resigned over a corruption scandal and in June her chief of staff, Antonio Palocci, stepped down in the face of questions about his rapid accumulation of personal wealth.

Sources: BBC News, Reuters, The Guardian

For more news and expert analysis about Brazil, please see Brazil Focus.

Brazil: Fissures in the ruling coalition

A watershed vote on the Forest Code on 25th May in the Chamber of Deputies revealed both the internal divisions of Workers' Party (PT) and the unity of Brazilian Democratic Movement (PMDB). The result frightened the Workers' Party, which now has grounds to fear a possible alliance of PMDB with PR and PP.

Together, they amount to 179 votes, more than enough to deter any PT aspirations to succeed Marco Maia (PT-RS) as president of the Cham­ber of Deputies. PMDB covets the job and will almost certainly get it. This election will take place in 2013, and will be strategic with a view to the presidential ballot in 2014.

PT has been counting on a coalition with PDT, PCdoB and PSB, but these parties have given indications of pursuing their own goals. It remains to be seen whether President Dilma Rousseff, with or without Lula's help, will be able to bring her contentious allies into line.

For more news and expert analysis about Brazil, please see Brazil Focus.

© 2011 Menas Associates

Brazil's Unions push for higher minimum wage

Brazil's President Dilma Rousseff met with the country's unions to discusstheir demand for a higher minimum wage. Rousseff, who endorsed the increase in the past, is now faced with the challenge of trying to contain the already overstretched public spending budget.

Brazil's minimum wage rose 62 per cent under former president Luiz Inacio Lula da Silva, but Rousseff wants to up the number by an additional 6.8 per cent this year to 545 Reals, using a formula set by the unions and Lula in 2006. The unions want the boost to go up to 580 Reals. If the goal of the unions is met, Rousseff's plans to curb spending needed to cool inflation will be put on hold.

Under the formula, spending is already set to increase 10 billion Reals this year because pension benefits are indexed to the wage. The pressure on resources is being compounded by Rousseff's pledge to invest 955 billion Reals to modernise the country's airports and carry out infrastructure improvements ahead of hosting the 2014 World Cup and 2016 Olympics.

In a speech at the opening session of Congress on 2nd February, Rousseff told lawmakers she was committed to “maintaining a macro-economic policy compatible with fiscal balance, a firm control of inflation and rigorous use of public money.” While promising to continue Lula's policy of granting workers' wage increases above inflation, she said stable rules needed to be put in place so that the salary gains are “compatible with the state's financial capacity.” The vote on minimum wage increase is expected to take place in March.

Sources: FT, Latin America Monitor, Bloomberg

For more news and expert analysis about Brazil, please see Brazil Focus.

Rousseff sworn into office

Dilma Rousseff has been sworn into office as Brazil's first female president. An estimated 70,000 people gathered for the inauguration ceremony in the country's capital, Brasilia.

Rousseff has taken over from President Luiz Inacio Lula da Silva who left office after two terms. Shortly after the official inauguration ceremony, Rousseff spoke to the nation and pledged to protect the most vulnerable and govern for the benefit of all. In a speech addressing the country, she also made clear that she was aware of the key problems faced by Brazil and assured that she would fulfil her promise of "consolidating the achievements" of her mentor, former president Lula.

Brazil's economy, currently enjoying a boom, inspires confidence in the country's future but Brazil still remains one of the main countries with the most unequal distribution of wealth.

Rousseff, who was appointed as energy minister in President Lula's government in 2003, later served as his chief of staff until 2010. Elected in October 2010, defeating opposition candidate Jose Serra by 56 per cent to 44 per cent in the second round, Rousseff said that her time in office was "just the beginning of a new era."

Sources: Radio Free Europe, Wall Street Journal, BBC News, Al Jazeera

For more news and expert analysis about Brazil, please see Brazil Focus.