page_title: History of Brazil since 1985
section_title: Collor and Franco administrations (1990–1994)
hierarchical_section_title: History of Brazil since 1985 / Collor and Franco administrations (1990–1994)
caption_attribution_description: Português: O presidente Fernando Collor acompanhado do vice presidente Itamar Franco, chega ao Palácio do Planalto.
context_page_description: Brazilian history since 1985, also known as the Sixth Brazilian Republic or New Republic, is the contemporary epoch in the history of Brazil, beginning when civilian government was restored after a 21-year-long military regime established after the 1964 coup d'état. The negotiated transition to democracy reached its climax with the indirect election of Tancredo Neves PMDB by Congress. Neves belonged to Brazilian Democratic Movement Party, an opposition party that had always opposed the military regime. He was the first civilian president to be elected since 1964.
  Neves was set to take over from General João Figueiredo, the last of the military junta presidents appointed by their predecessor. The transition was hailed as the dawn of a New Republic in contrast with República Velha, the first epoch of the Brazilian Republic, from 1889 until 1930. It became synonymous with the contemporary phase of the Brazilian Republic and the political institutions established in the wake of the country's re-democratization.
  President-elect Tancredo Neves fell ill on the eve of his inauguration and could not attend it.
context_section_description: The first direct presidential election after 29 years was held on October 15, 1989 (first round) and November 15, 1989 (second round). Fernando Collor de Mello won the run-off election with 53% of the vote for a five-year term.
  Collor's agenda focused on fighting corruption from Sarney's administration and completing the transition from the 21 years of military rule to civilian government. Economic changes aimed to control soaring inflation and modernization.
  Although he had massive support amongst the voters, the administration had a small parliamentary base as Collor's recently founded party had few deputies and no senators and faced fierce opposition from parties that had splintered from the Democratic Alliance: the Brazilian Democratic Movement Party (PMDB), Liberals (PFL), and Social Democrats (Brazilian Social Democracy Party, PSDB).
  His first act was known as Plano Collor: all savings accounts and financial investment were frozen, and the national currency was changed from the cruzado novo to the cruzeiro (NCz$1,000 = Cr$1). Plano Collor initially succeeded, but after six months failed in its primary goal, as inflation accelerated again. This started to erode Collor's prestige. Economic changes included lifting import barriers, exposing local companies to international competition. Many companies went bankrupt or were sold, unemployment grew and support for the government deteriorated.
  Parliamentary elections were held on October 15, 1990 and the government failed to win a reliable base in Congress and the president began to lose political support.
  In May 1991, Collor's brother Pedro Collor accused him of corruption, specifically of condoning an influence peddling scheme run by his campaign treasurer, Paulo César Farias. Congress and the Federal Police of Brazil began an investigation. Some months later, with the investigation progressing and under fire, Collor went on national television to ask for the people's support, by going out on the street and protesting against coup forces. On August 11, 1992, students organized by the União Nacional dos Estudantes (UNE), thousands of students protested on the streets against Collor. They often painted their faces, frequently in a mixture of the colors of the flag and protest-black, which led to calling them "Cara-pintada" (Painted Faces).
  On August 26, 1992, the final congressional inquiry report was released, where it was proven that Fernando Collor had personal expenses paid for by money raised by Paulo César Farias through his influence peddling scheme. Impeachment proceedings began in the lower house of congress on September 29, 1992. Collor was impeached, and subsequently removed from office by a vote of 441 for and 38 votes against. Fernando Collor resigned his term in office just before the Brazilian Senate was to vote for his impeachment. The senate voted to impeach him anyway, suspending his political rights for eight years.
  His vice-president, Itamar Franco, assumed the presidency for the remainder of Collor's term.
  Franco distanced himself from Collor and made arrangements for a coalition government that included the main leaders from the PMDB, PFL, and PSDB. Franco appointed Fernando Henrique Cardoso as Minister of Treasury and gave him the responsibility of controlling inflation – the average annual inflation rate from 1990 to 1995 was 764%. Cardoso put together a successful stabilization program, Plano Real, that brought inflation to 6% annually. Franco's approval ratings rose and he supported Cardoso to succeed him.
  In the October 3, 1994 presidential elections, Fernando Henrique Cardoso was elected with 54% of the votes.
caption: Collor (smiling) and Franco (glasses). After the impeachment of Collor, his former vice-president took office
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