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Ask Hollywood Wed, Aug 17 2011 Brazil's Rousseff scrambles to control ally rebellion Tweet Share this Email Print Related News Anna Hazare to launch public fast as government relents 11:23am EDT UPDATE 3-Brazil gov't in crisis as fourth minister quits Wed, Aug 17 2011 India protests swell as Anna Hazare fasts Wed, Aug 17 2011 Analysis: India risks facing its own Arab Spring Wed, Aug 17 2011 Police order India activist freed after protests Tue, Aug 16 2011 Analysis & Opinion It’s time India reposes faith in itself Among the protests, India’s poor get on with life Related Topics World » Brazil » By Raymond Colitt BRASILIA | Thu Aug 18, 2011 11:48am EDT BRASILIA (Reuters) - Brazilian President Dilma Rousseff reached out to political allies on Thursday to stem a growing rebellion within her coalition after the resignation of a fourth minister pushed the government deeper into crisis. Agriculture Minister Wagner Rossi resigned on Wednesday following corruption allegations against his aides, ratcheting up tensions within the unwieldy ruling coalition and adding to a sense of disarray in Rousseff's eight-month-old government. The large PMDB party, of which Rossi is an influential member, and other coalition allies are angry at Rousseff's drive to cut costs and root out corruption in ministries and is threatening to block her economic reform agenda in Congress. Rossi's resignation raised the risk of a damaging showdown between Rousseff and the PMDB, the largest party in her alliance. The party's leadership has said it could "protest" against the government in Congress, potentially derailing her attempt to control spending and pass reforms such as streamlining the tax code to help raise economic growth. "No government can emerge unscathed from the dismissal of four ministers in eight months. The new ghost haunting (the presidential palace) is named instability," newspaper Folha de Sao Paulo wrote in an editorial. Rossi will be replaced by Mendes Ribeiro, a little-known PMDB legislator in the lower house of Congress, the government said. The political crisis in Brasilia comes at a bad time for Brazil's economy, which is showing signs of slowing after breakneck growth last year. Rousseff faces the tricky task of spurring growth while maintaining fiscal austerity that is crucial to keeping inflation under control. ALOOF STYLE Rousseff, a center-left technocrat whose aloof style has contributed to the souring of coalition ties, will personally reach out to political allies in an attempt to ease tensions, a senior source in the president's office told Reuters on Thursday. Rousseff's drive to tackle the notorious graft of Brazil's public administration has put her on a collision course with political parties that are crucial for her to advance her legislative agenda. Jose Dias, a political consultant in Brasilia, said Rousseff had shaken a "wasps' nest" with the anti-graft drive and appeared to be losing control. "This corruption sweep is snowballing out of control, it's extremely dangerous. She's already lost her legislative agenda, and now she risks growing instability," he said. Her transport minister left the government under a cloud of graft accusations in July and the high-profile arrest this month of a group of tourism ministry officials on corruption charges has angered PMDB leaders. Her chief of staff Antonio Palocci, seen by investors as a guiding hand in economic policy, quit in June following allegations of illicit enrichment. Rousseff also lost her defense minister, Nelson Jobim, after he complained that he was surrounded by "idiots." "This string of resignations is worrying. There's a growing feeling of 'who is next?'" one Rousseff aide told Reuters. (Writing by Brian Ellsworth; editing by Stuart Grudgings and Will Dunham) World Brazil Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above. Social Stream (What's this?) 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