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▲ 1.28% B3SA3 15.32 ▲ 1.32% WEGE3 44.25 ▼ 0.32% PRIO3 57.03 ▼ 0.30% SUZB3 41.14 ▼ 0.84% RENT3 40.35 ▲ 0.37% AZZA3 18.81 ▼ 2.13% CSAN3 3.89 ▼ 0.26% RAIZ4 0.32 ▼ 3.03% PCAR3 2.47 ▼ 4.63% GMAT3 3.96 ▲ 0.51% PSSA3 54.07 ▲ 0.06% CVCB3 1.28 ▲ 2.40% POSI3 3.94 ▼ 1.25% SLCE3 13.71 ▼ 1.15% NATU3 8.51 ▼ 1.05% BRKM5 6.66 ▼ 4.03% RANI3 8.02 ▲ 0.88% CSNA3 5.20 ▼ 0.76% CMIN3 5.22 ▼ 4.22% USIM5 8.29 ▼ 1.07% GGBR4 23.11 ▲ 1.27% ENEV3 26.82 ▼ 0.22% CPFE3 47.02 ▲ 0.38% CMIG4 11.12 ▲ 0.45% EQTL3 40.48 ▲ 0.67% LREN3 14.13 ▼ 0.14% VIVT3 35.30 ▲ 1.64% RAIL3 14.14 ▲ 0.21% KLABIN 17.39 ▼ 0.51% RAIA DROGASIL 18.38 ▲ 0.99% RDOR3 35.60 ▲ 0.11% HAPV3 10.68 ▲ 2.10% FLRY3 16.31 ▲ 0.99% SMTO3 16.22 ▼ 0.92% UGPA3 30.25 ▼ 2.20% VBBR3 32.86 ▲ 0.31% BBSE3 40.15 ▼ 0.32% BPAC11 58.01 ▲ 0.85% CURY3 32.86 ▼ 0.79% AERI3 2.09 ▲ 0.48% VIVARA 23.26 ▲ 0.65% COMPASS 25.13 ▲ 1.45% VAMOS 3.05 ▲ 0.99% SANB11 27.32 ▼ 0.18% ASAI3 8.65 ▼ 0.69% SBSP3 30.31 ▼ 0.20% WALMEX 49.64 ▼ 0.02% GMEXICO 201.59 ▲ 3.07% FEMSA 233.69 ▲ 3.70% CEMEX 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SILVER 59.10 ▲ 2.54% SOY 1,192 ▼ 0.83% CORN 460.75 ▲ 5.25% WHEAT 646.75 ▲ 3.15% COFFEE 326.65 ▼ 4.32% SUGAR 14.89 ▲ 0.95% ORANGE JUICE 138.80 ▼ 2.63% COTTON 81.68 ▲ 2.32% COCOA 5,901 ▲ 3.60% BEEF 231.80 ▼ 1.25% CATTLE 349.40 ▼ 1.40% LITHIUM 71.40 ▲ 1.65% PETR4 40.82 ▲ 0.39% VALE3 74.08 ▲ 1.69% ITUB4 43.51 ▼ 0.02% BBDC4 18.59 ▼ 0.96% ABEV3 15.89 ▲ 0.38% BBAS3 20.50 ▲ 1.28% B3SA3 15.32 ▲ 1.32% WEGE3 44.25 ▼ 0.32% PRIO3 57.03 ▼ 0.30% SUZB3 41.14 ▼ 0.84% RENT3 40.35 ▲ 0.37% AZZA3 18.81 ▼ 2.13% CSAN3 3.89 ▼ 0.26% RAIZ4 0.32 ▼ 3.03% PCAR3 2.47 ▼ 4.63% GMAT3 3.96 ▲ 0.51% PSSA3 54.07 ▲ 0.06% CVCB3 1.28 ▲ 2.40% POSI3 3.94 ▼ 1.25% SLCE3 13.71 ▼ 1.15% NATU3 8.51 ▼ 1.05% BRKM5 6.66 ▼ 4.03% RANI3 8.02 ▲ 0.88% CSNA3 5.20 ▼ 0.76% CMIN3 5.22 ▼ 4.22% USIM5 8.29 ▼ 1.07% GGBR4 23.11 ▲ 1.27% ENEV3 26.82 ▼ 0.22% CPFE3 47.02 ▲ 0.38% CMIG4 11.12 ▲ 0.45% EQTL3 40.48 ▲ 0.67% LREN3 14.13 ▼ 0.14% VIVT3 35.30 ▲ 1.64% RAIL3 14.14 ▲ 0.21% KLABIN 17.39 ▼ 0.51% RAIA DROGASIL 18.38 ▲ 0.99% RDOR3 35.60 ▲ 0.11% HAPV3 10.68 ▲ 2.10% FLRY3 16.31 ▲ 0.99% SMTO3 16.22 ▼ 0.92% UGPA3 30.25 ▼ 2.20% VBBR3 32.86 ▲ 0.31% BBSE3 40.15 ▼ 0.32% BPAC11 58.01 ▲ 0.85% CURY3 32.86 ▼ 0.79% AERI3 2.09 ▲ 0.48% VIVARA 23.26 ▲ 0.65% COMPASS 25.13 ▲ 1.45% VAMOS 3.05 ▲ 0.99% SANB11 27.32 ▼ 0.18% ASAI3 8.65 ▼ 0.69% SBSP3 30.31 ▼ 0.20% WALMEX 49.64 ▼ 0.02% GMEXICO 201.59 ▲ 3.07% FEMSA 233.69 ▲ 3.70% CEMEX 22.15 ▲ 1.70% GFNORTE 186.99 ▲ 2.70% BIMBO 56.37 ▲ 0.89% TELEVISA 9.48 ▼ 1.35% AMX 22.86 ▲ 1.20% GAP 386.93 ▼ 5.21% ASUR 278.43 ▼ 0.08% OMA 233.96 ▲ 0.27% KOF 182.17 ▲ 0.50% GRUMA 283.44 ▲ 0.74% KIMBER 38.46 ▲ 0.63% SQM-B 67,880 ▲ 1.00% COPEC 6,082 ▲ 0.41% BSANTANDER 78.65 ▲ 0.58% FALABELLA 5,889 ▼ 0.27% ENELAM 85.49 ▲ 1.53% CENCOSUD 2,064 ▲ 1.19% CMPC 1,081 ▲ 0.26% BANCO CHILE 188.12 ▲ 1.69% LATAM AIR 24.60 ▼ 1.20% YPF 77,375 ▲ 0.26% GGAL 8,025 ▼ 0.68% PAMPA 5,210 ▼ 0.29% TXAR 664.00 ▼ 0.08% ALUAR 960.00 ▼ 0.47% TGS 9,725 ▲ 1.62% CEPU 2,300 ▼ 0.82% MIRGOR 16,825 ▼ 1.03% COME 45.16 ▲ 0.85% LOMA NEGRA 3,565 ▲ 1.93% BYMA 306.00 ▼ 0.73% TELECOM ARG 4,263 ▲ 0.29% ECOPETROL 16.05 ▲ 1.07% BANCOLOMBIA 81.99 ▲ 1.95% GRUPO AVAL 4.92 ▲ 0.20% CREDICORP 390.96 ▲ 0.45% SOUTHERN COPPER 180.16 ▲ 3.23% BUENAVENTURA 30.80 ▲ 3.29% MERCADOLIBRE 1,878 ▲ 0.56% NUBANK 14.01 ▲ 2.45% XP 16.83 ▲ 2.78% PAGSEGURO 9.25 ▼ 0.38% STONE 11.23 ▲ 0.67% GLOBANT 31.86 ▼ 0.81% TECNOGLASS 43.41 ▲ 1.33% GAP AIRPORT 222.39 ▼ 4.46% ASUR 278.43 ▼ 0.08% OMA AIRPORT 107.40 ▲ 1.20% AMX ADR 26.25 ▲ 0.85% FEMSA ADR 134.15 ▲ 3.98% CEMEX ADR 12.72 ▲ 2.17% PETROBRAS ADR 18.00 ▲ 0.64% VALE ADR 14.56 ▲ 2.64% ITAU ADR 8.56 ▲ 1.00% SANTANDER BR 5.40 ▲ 0.84% AMBEV ADR 3.11 ▲ 1.63% CSN 1.03 ▼ 0.49% GERDAU 4.57 ▲ 1.78% LATAM ADR 53.46 ▲ 0.24% BTC 64,712 ▲ 3.97% ETH 1,872 ▲ 5.54% SOL 77.28 ▲ 3.23% XRP 1.10 ▲ 3.64% BNB 581.53 ▲ 2.63% ADA 0.17 ▲ 5.26% DOGE 0.07 ▲ 3.73% AVAX 6.65 ▲ 3.19% LINK 8.27 ▲ 5.06% DOT 0.86 ▲ 2.45% LTC 44.62 ▲ 2.60% BCH 237.99 ▲ 0.74% TRX 0.32 ▲ 0.24% XLM 0.18 ▲ 2.39% HBAR 0.07 ▲ 0.43% NEAR 2.03 ▲ 6.06% ATOM 1.55 ▲ 1.04% AAVE 100.00 ▲ 5.98% 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Opinion: Brazil’s Electoral Reform, Part IV

By · August 24, 2017 · 3 min read

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Opinion, by Michael Royster

RIO DE JANEIRO, BRAZIL – Another controversial measure about to be introduced into the “political reform” bill is the “barrier clause” or, as its proponents prefer, the “performance clause”. Its purpose is to reduce the number of political parties in Congress.

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The proposed constitutional amendment just approved by a committee in the Chamber of Deputies requires at least 1.5 percent of the total vote, although the proposal has it rising to three percent by 2030.

Moreover, the clause does not prohibit representation for parties not reaching the threshold, it simply cuts off financing for “minnow” political parties. Nevertheless, the threshold eventually enacted will probably be sufficiently low to ensure that there are at least a dozen parties represented in Congress—too many, but much better than the 26 now there, so not to be complained of.

Together with the performance clause, the bill will, finally, outlaw the forming of electoral “coalitions”, where several parties join together to have all their votes counted in the allocation of seats. These coalitions vary cynically from state to state, with sworn political enemies becoming bedfellows for one election only. One of the functions of the coalitions has been to permit the election of politicians from the “minnow” parties, and these will presumably disappear.

But of course, the many political parties that now depend upon coalitions and the absence of a barrier clause to ensure representation in Congress and access to public funding, will be seeking to undermine these provisions as well. These minnow parties include some ideologically left-wing parties such as PSOL, PCdoB and PV. They all resist being drawn into the maw of PT, the only mass party with leftward leanings and enough votes to pass the barrier.

The proposed amendment includes a clause which permits parties to form “federations”, which are similar to coalitions but are supposed to be ideologically coherent, and valid nationwide rather than locally.

In other words, “federation” ABCD made up of 4 parties cannot, in certain state elections, become “federation” ACDE. It remains to be seen whether the full Chamber will pass this measure without further diluting the requirements for election.

Additionally, there is a similar Amendment now before the Brazilian Senate. It calls for a two percent barrier clause in 2018, rising to three percent in 2026. In order for a proposed Amendment to be passed, it must receive sixty percent of the total number of Deputies and Senators, with two votes in both houses.

At the moment no one knows whether agreement by both houses will be possible by the first week of October deadline, one year before the first round of the 2018 federal and state elections.

And, finally, just to complicate things a little, the Brazilian Supreme Court, in 2006, declared unconstitutional a “barrier” clause enacted by a federal statute, as it limited the freedom of parties to organize and compete in elections.

Since the new clause will be included in a constitutional amendment, not a mere statute, it seems likely the STF will approve it. But one never knows.

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