Brazil’s hard-won economic stability hangs in the balance this week as Antônio Palocci, finance minister, comes under mounting pressure from the corruption scandal that has dogged the government for the past six months and faces increasingly vocal attacks on his austere policies from fellow ministers apparently backed by President Luiz Inácio Lula da Silva.

Mr Palocci has battled hard to maintain tight controls on spending to reduce government debt. He has also championed the central bank’s use of high interest rates to control inflation. These twin pillars of stability could crumble if, as appears increasingly possible, Mr Palocci were forced out of government.