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Weekly Report - 26 July 2005

BRAZIL: Lula pays a high price for corruption scandal

President Lula da Silva is paying a high price for the corruption scandal that has engulfed the upper reaches of his Partido dos Trabalhadores (PT) - in terms of both personal prestige and the concessions he has had to make to his political allies, to the detriment of his own party. The full bill may not have been presented yet: still pending is the election of a new party leadership, in which the dominance of the Campo Majoritário faction will be strongly contested.

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