Rousseff supporters to lead Brazil Congress

Two allies of President Dilma Rousseff won leadership posts in Brazil's Congress, but both are seen as defenders of the status quo and unlikely to support reforms to boost business competitiveness.

Legislators elected Marco Maia, a former unionist and junior deputy of Rousseff's ruling Workers' Party, or PT, to head the lower house Chamber of Deputies. Jose Sarney, Brazil's president from 1985 to 1990 and a heavyweight in the centrist PMDB party, was confirmed in his current job as Senate leader.

The two posts are key in setting the legislative agenda and help consolidate Rousseff's control in Congress, where her 10-party coalition holds 60-70 percent of the seats.

The election of Maia and Sarney will, in many ways, be a relief to Rousseff. A power struggle last month between the PT and PMDB -- the two biggest parties in her coalition -- had raised the possibility of a split vote that could lead to the election of an outsider from a small party.

Maia and Sarney are widely seen as defenders of the status quo who are unlikely to champion pro-business reforms or measures to make politics more transparent.

"It's not an ideal team. Both seem more interested in satisfying their constituencies than pushing reforms," said Rafael Cortez, political analyst with Sao Paulo-based consultancy Tendencias.

Sarney, 80, served as president during the 1980s and is a symbol of Brazil's old-style oligarchy. He has repeatedly failed to deliver on reform promises in the past and was embroiled in a corruption and ethics scandal in 2009 that nearly cost him his post.

Maia is closely linked to labour unions that oppose reforms, such as making it easier to hire and fire workers.

With a strong currency fast eroding their market share, industry leaders have urged Rousseff, who took office on Jan. 1, to cut generous pension benefits, simplify unwieldy taxes, and ease rigid labour laws.