Clashes in Brazil as Senate approves 20-year austerity plan

Brazil’s senate has passed a controversial spending cap that will limit public spending to inflation for the next 20 years

Protesters hold placards reading ‘Temer Out’ during a demonstration against austerity measures in Rio de Janeiro, Brazil (Photo: Getty Images)
Protesters hold placards reading ‘Temer Out’ during a demonstration against austerity measures in Rio de Janeiro, Brazil (Photo: Getty Images)

The Brazilian Senate has approved a controversial amendment to the constitution capping public spending for the next 20 years, despite protests across the country against the measure.

The spending cap, known as PEC 55, will now be signed off on 15 December and freezes expenditure in the executive, judiciary and legislative branches of power, allowing them to grow only by the rate of inflation in the previous year.

The approval of the austerity measure is an important victory for President Michel Temer, who took office earlier this year promising to lead the country out of its worst recession in many decades.

Temer has staked his government’s credibility on measures to reduce public spending – which soared out of control under impeached President Dilma Rousseff as Brazil sunk into a debilitating recession – and his ability to control the bickering parties in an unruly congress.

However, the spending cap has been described by a senior UN official as the most socially regressive austerity package in the world, while Brazilian leftists argued that it will damage the country’s already fragile health and education systems.

Protests against the measure turned violent in the capital Brasilia and at least a dozen states in the country.

Masked protesters set fire to a bus and marched on the local offices of Globo TV, which they say is biased towards Temer's government. But the marchers were blocked by riot police.

In Sao Paulo, the headquarters of the state's conservative Industrial Federation (Fiesp) was attacked.

To pass the constitutional amendment, the government needed the votes of 49 senators - three-fifths of the Senate.

The measure was approved by a narrower margin than the government expected, passing by 53 to 19 votes.

The government argues it is necessary to boost growth and investments, and contain the country's growing public deficit.