Brazil Supreme Court Halts Rousseff Impeachment Efforts

Brazilian Supreme Court Justice Luiz Edson Fachin suspended for a week the creation of a congressional committee that would recommend whether to continue impeachment proceedings against President Dilma Rousseff after the government was defeated in a secret vote to appoint members of that committee.

Fachin, appointed by Rousseff to the top court earlier this year, issued the ruling just hours after Congress accepted the committee members appointed by the opposition on Tuesday evening, in a tumultuous session marred by physical scuffles between congressmen. Pro-government lawmakers objected to the vote, saying it should have been public.

Brazilian assets traded overseas jumped higher on Tuesday as the approval of the committee members in a secret vote was considered a defeat to Rousseff, who has been struggling to keep enough votes to stop impeachment proceedings in Congress. Many investors believe that a solution to the impeachment impasse would be positive for the economy as it would remove a major source of uncertainty.

Committee members must be chosen by party leaders and elected in an open vote, Fachin said in his decision on the challenge filed by Brazil’s Communist Party. Congress must hold off on any other activities related to the impeachment process until the court rules next week on the rest of the challenge, he said.

Once it is created, the 65-member committee is supposed to hear Rousseff’s defense and recommend whether the full lower house should allow impeachment hearings to start in the Senate.