'Temer's arrest complicates voting on pension reform', assesses the financial market.
According to XP Política, the analysis arm of the investment group, the arrest creates a "more turbulent and heated environment in Congress" that is not good for the vote on the pension reform.
247 - XP Política, the analysis arm of the investment group, negatively assessed the decision by the Lava Jato task force in Rio de Janeiro to arrest Michel Temer. This is because, according to the financial market, the measure will have repercussions on the vote for the pension reform.
According to XP, the arrest is already causing "panic" in the political class, which had already been feeling the effects of the crises created by Jair Bolsonaro's own government.
"A more turbulent and heated environment in Congress cannot be good for pension reform. The Judiciary and the Public Prosecutor's Office, which are currently holding Temer accountable, are the same groups that, along with other elite members of the civil service, will exert heavy pressure against the reform in Congress. The greater the empowerment outside, the greater the firepower inside the Houses," the analysts wrote in a note sent to clients.