Temer makes appointments before the State-Owned Enterprises Law is sanctioned.

By José Marcio Mendonça, from Infomoney

The newspaper "Folha de S. Paulo" gives an idea of ​​the difficulties that Michel Temer's interim government is encountering in the world of "realpolitik" in carrying out its project to reorganize the Brazilian public administration and contain the explosive growth of public spending.

1. According to the column “Painel”, written by reporter Natuza Nery, in just one day, in the last 24 hours, approximately 140 appointments to various positions were signed in the Civil House, before Temer sanctions the new State-Owned Enterprises Law. The law was quickly approved in the Chamber and the Senate by instances of the Presidential Palace. Now, the government is reportedly regretting its excessive rigor.

The acting president has already postponed signing the text twice, claiming he needs to make legal adjustments to what was approved by Congress, with some vetoes. However, politicians want him to veto the three-year quarantine period for the appointment of former officeholders and party leaders. Meanwhile, a flurry of appointments could clog the "Official Gazette of the Union".

2. After a meeting with union leaders, which failed to reach a consensus, the government decided, due to pressure from them, to postpone sending the pension reform proposal to the National Congress. This reform is one of the main pillars of the plan to recover public finances. The initial deadline was the end of next month. A new commission was formed to discuss the proposal.

Now, the only commitment is to try to approve the changes by the end of the year. This is practically impossible given the year's political calendar – the final vote on the impeachment process in the Senate, rescheduled for after the closing of the Olympic Games on August 21st, and the municipal elections, which will occupy the parliamentarians' time in September and a good part of October due to the second rounds.

The hottest political issues, apart from daily revelations about corruption, have not progressed.

More clarity and more Realism at the Central Bank

Dilma's meeting with the PT leadership – without Lula present – ​​was merely a formality, according to available information. This fuels suspicion that PT members are not keen on getting too involved with the return of the suspended president. The PT is calculating the electoral damage this could cause – perhaps the best course of action is to go into opposition and try to exploit the difficulties of the Temer government.

As for Eduardo Cunha, with his incredible stamina, even with his back against the wall, he managed yet another favorable maneuver – the name indicated to report on the representation requesting the suspension of the proceedings against him in the Constitution and Justice Committee (CCJ) is from his group. Even so, Cunha will only buy a little time – assessments are that the expulsion of the Rio de Janeiro congressman is a foregone conclusion, despite the fear he spreads in Brasília and surrounding areas.

In the economy, without major surprises, the highlight was the speech by the new president of the Central Bank, Ilan Goldfagn, and the Quarterly Inflation Bulletin (BTI), the first one he has signed. Both were well received, and the feeling is that there is more clarity and realism in the Central Bank's communication.

One interpretation is that the start of interest rate reductions will not come now. Therefore, there was a strong reaction in the market: short-term rates, maturing in January 2017, rose, and long-term rates, maturing in January 2021, fell.

The senators, who attended dinner with Henrique Meirelles at the home of Senate President Renan Calheiros, considered the meeting "frustrating." According to the page of

According to the online newspaper "Valor Econômico," the Finance Minister has "washed his hands" of the issue regarding salary increases for various categories of public employees. This has angered members of parliament.