Brazil approves 20-year austerity plan amidst protests

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Sharecast News | 14 Dec, 2016

Brazilian senators have approved a constitutional amendment which will place a limit on public spending for the next two decades, in an attempt to bring the country out of a crippling recession.

Protests erupted across various states in the South American country on Tuesday after the measure was passed, with the demonstration in the capital Brasilia turning particularly violent.

Demonstrators attacked key government buildings such as the Federation of Industries in Sao Paulo, with windows being smashed before the crowd was dispersed by security forces.

The legislation was introduced by president Michel Temer, who took the position earlier this year after the impeachment of predecessor Dilma Rousseff amidst a widespread corruption scandal.

Temer took office on promises of leading the country out of its worst economic situation in decades, but opposition to the amendment say that public services such as health and education will suffer as a result.

Brazil's GDP has shrunk for the last seven consecutive fiscal quarters, including the most recent figures which have shown a reduction of 0.8%.

"We have won. That was the main thing: to deliver the product in the middle of a storm," said government representative in the Senate, Romero Juca.

President Temer is embroiled in a corruption scandal, in which he is accused of soliciting millions of dollars in donations from construction giant Odebrecht.

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