VZCZCXYZ0004
OO RUEHWEB

DE RUEHSO #0118 0611917
ZNR UUUUU ZZH
O 021917Z MAR 09
FM AMCONSUL SAO PAULO
TO RUEHC/SECSTATE WASHDC IMMEDIATE 8984
INFO RHEHNSC/NATIONAL SECURITY COUNCIL WASHDC IMMEDIATE
RUEHBR/AMEMBASSY BRASILIA PRIORITY 0139
RUEHRI/AMCONSUL RIO DE JANEIRO PRIORITY 9041

UNCLAS SAO PAULO 000118 
 
SIPDIS 
 
STATE INR/R/MR; IIP/R/MR; WHA/PD 
 
DEPT PASS USTR 
 
USDOC 4322/MAC/OLAC/JAFEE 
E.O. 12958: N/A 
TAGS: KMDR OPRC OIIP XM XR XF BR
SUBJECT: MEDIA REACTION - MIDEAST:  ISRAEL, FORMATION OF NEW 
GOVERNMENT; GLOBAL ECONOMY:  FINANCIAL MARKET CRISIS; STIMULUS 
PACKAGES; PROTECTIONISM; SAO PAULO 
 
"Time to wait" 
 
Editorial in liberal A Folha de S. Paulo (3-2) says: "Each day there 
is less probability that Israel forms a coalition 
government....Without Kadima's support, Likud is left with the 
option of leading a more radical and nationalist government, leaning 
towards the opposition to any substantial concession to the 
Palestinians and the peace process...Either way, on the Israeli side 
as on the Palestinian side, the new political scene will be 
determined by the concrete results from the political distension 
with Iran launched by new US President, Barack Obama." 
 
"Obama's budget" 
 
Editorial in center-right O Estado de S. Paulo (3-2) states: 
"....United States President, Barack Obama, began to fulfill his 
campaign promises when he presented the main points of his budget 
proposal for the fiscal year 2010.....Obama's explicit commitment is 
to reduce the U.S. deficit in the upcoming years..... During his 
campaign, Obama did not make any commitment to open the American 
market more and to contribute to the trade liberalization....Obama 
will have to negotiate his first budget in an environment filled 
with a lot of pessimism." 
WHITE