New Bill will Cut the Brazil's Royalties Received from Oil Threatening Olympic Games

[Seabastian.Smith]

Brazilian President Dilma Rousseff is under pressure to veto an oil royalty bill that will slash the revenues of Rio de Janeiro state and put the 2016 Olympics and the 2014 World Cup in peril.

The bill passed by Congress on Tuesday cuts royalty payments to governments where about 80 percent of the country's oil and natural gas is produced and shares it out more equally among Brazil's 27 states and more than 5,500 municipalities. It also redirects royalties to a national fund for social programs.

[The Oil Baron]

This could be interesting. I wonder what FIFA or the IOC will think about this.

Could Brazil have the Olympic Games or the World CUp taken from them and passed to someone else? If so then it seems unlikely that the government will approve such a bill, at least not before 2016. The blow to their international reputation, and economy, would be huge.