Legal tools that allow the reconfiguration of the Brazilian party system, party mergers, incorporations and federations are gaining prominence as strategies to reduce the fragmentation of the Brazilian political scene. Understanding these mechanisms becomes essential to understand their direct impacts on the quality of representation in Congress, governability and political transparency. 

Currently, according to data from Superior Electoral Court (TSE), the country has 29 registered parties. The number is expected to decrease with the recent movements of the associations – federation between União Brasil and PP and the merger between PSDB and Podemos – demonstrating a reduction in the number of party legends over the last few years. 

What are party mergers? 

Provided for in article 29 of Law No. 9,096/1995 (Political Parties Law), party mergers are, in practice, a definitive union between parties. Once united, the parties cease to exist separately. Thus, a new party is created.

In such cases, the governing bodies of the political parties draw up joint drafts of the statute and programme. The national deliberative bodies of the merging parties in question then vote in a joint meeting to elect the national body responsible for registering the new political party.

As this is a definitive union, public money transfers are sent in a single way to the new party, unlike party federations.

In 2022, two new parties emerged from mergers: União Brasil, a merger between the Democrats (DEM) and the Social Liberal Party (PSL), and the Democratic Renewal Party (PRD), a merger between the Patriota and the Brazilian Labor Party (PTB).

Recently, the PSDB and Podemos parties carried out a merger, continuing the reduction of party numbers in Congress.

What are party incorporations?

Also guaranteed by article 29 of Law No. 9,096/1995, party incorporations mean that the incorporating party keeps its name and acronym, if it wishes. 

According to the Civil Code, the political party to be incorporated must decide, by an absolute majority of votes, in its national governing body, whether to adopt the statute and program of the incorporating party association. After this, it is necessary to elect a new national governing body, which will provide for the establishment of new municipal and state bodies.

The Podemos, Patriota, PcdoB (Communist Party of Brazil) and Solidariedade parties are groups that have already incorporated other parties.  

What are party federations?

The federations are the result of a recent electoral reform instituted by the National Congress in 2021 (14.208/2021). As a kind of test for a future merger or incorporation of the parties, the federations were created so that the parties act in a unified manner. The 2024 election was the first municipal election with the participation of this model, which effectively began in 2022. 

They function as a single party association, and can support any candidate, as long as they remain that way for at least four years. 

In this model, candidates can be for either major positions (positions of president of the Republic, state governor, senator and mayor), or proportional positions (federal, state or district deputy, and councilor).

Since parties within the same federation are required to remain in the same bloc for four years, the best scenario is for partnerships to be established between parties with similar interests. This reduces the risk of voters electing a candidate with an opposing ideology. 

In Brazil, there is currently the Brazilian Federation of Hope (FE Brasil), composed of the Workers' Party (PT), the Communist Party of Brazil (PCdoB) and the Green Party (PV), the first to be consolidated, in 2022. There is also the PSOL REDE Federation, composed of the Socialism and Freedom Party (PSOL) and the Sustainability Network (REDE). 

Furthermore, the PSDB Cidadania Federation, composed of the Brazilian Social Democracy Party (PSDB) and Cidadania, was in operation. However, in February of this year, the national board of Cidadania announced the breakup of the federation, which may only happen in 2026. 

In cases like this, the party that leaves a federation before the minimum period will not be able to join another one, or form a coalition in the following two elections. 

Furthermore, the party will not be able to access the Party Fund during the period remaining until the official end of the federation. In the case of federations, public resources from the party fund – monthly maintenance of the party – and the electoral fund – campaign financing – are transferred separately to each party in the federation. 

The exception to these rules only occurs in cases where the federation is dissolved due to the merger or incorporation of the parties involved. 

What is the impact of these mechanisms on the electoral system?

One of the main impacts of party mergers, federations and incorporations is the reduction of party fragmentation in Brazil. In theory, they also contribute to the formation of more ideologically cohesive benches in Congress. 

In the case of party federations, a long-term commitment is required between the parties, as a kind of test for future incorporations or mergers. Incorporations and mergers, on the other hand, promote the reduction of party fragmentation. 

In the electoral field, these mechanisms directly affect access to party funds, electoral funds and free advertising time on radio and TV, benefits distributed based on electoral performance and the number of seats in the Chamber. 

In the case of mergers and acquisitions, the sum of these resources between the parties that have been unified is permitted. In the case of federations, the distribution remains separate, even if the parties act as a single electoral entity. In addition, strategies to overcome the barrier clause come into play – constitutional amendment 97 – , which imposes restrictions on parties with low votes. 

The clause officially came into effect in the 2018 elections and, since then, its rules have been tightened in each election, until 2030 – this year, parties will have to obtain at least 3% of the national valid votes for federal deputy, distributed evenly across nine states, or elect at least 15 federal deputies, also distributed. Although the clause does not lead to the mandatory extinction of parties that do not comply with it, parties will not receive party funds if they do not reach it. 

In other words, the mechanisms influence proportional elections, as the candidates' votes are counted by the federation as a whole or by the newly formed party, affecting the legislative composition.