MercoPress. South Atlantic News Agency

Brazilian Congress sends disturbing message.

Conservative Deputy Severino Cavalcanti from the Progress Party was elected president of Brazil's Lower House, an unexpected defeat for the administration of President Luiz Inacio Lula da Silva and setback for his reform plans.

This is the first time in recent history that a ruling Brazilian party with a majority in Deputies is incapable of having its candidate elected to head the House.

Cavalcanti, 74, close ally of the Brazilian Church was seen as a "corporative" candidate who was involved in an intense Congressional campaign promising greater allowances and better working conditions for his colleagues in the Lower House.

The actual voting demanded several rounds plus ongoing complicated negotiations that extended over twelve hours. Mr. Cavalcanti finally defeated the incumbent candidate 300 to 195 with 498 of Brazil's 513 federal Deputies present in Congress. The job also controls many other congressional posts and has wide powers over how and when legislation is voted. Besides he manages a billion US dollars annual budget, well above that of 16 Brazilian states.

The new Lower House president who belongs to a small party will be holding the chair until October 2006, President Lula's last year and when general elections will be held.

Political analysts believe the defeat signals Mr. Lula da Silva will have to work harder to appease some elements of his ruling coalition to build support for his economic legislation this year.

''The government's defeat is an extremely important event, as it gives a very clear sign that there's a problem in its political dialogue with the Congress'' indicated Elio Jaguaribe adding that "it's a very significant protest that shows how unhappy the allied base is.''

The president of the Lower House is third in the succession line and sits in for the President when the vice-president is absent.