By 1934 Vargas would develop in response what Thomas E. Skidmore and Peter H. Smith called "a legal hybrid" between the regimes of Mussolini’s Italy and Salazar’s Portuguese Estado Novo, copied repressive fascist tactics, and conveyed their same rejection of liberal capitalism, but attained power baring few indications of his future quasi-fascist polices.

Changing conditions forced Vargas to eventually abandon the arrangements of the "provisional government" (1930-34), characterized by a path of social reformism that appeared to favor the generally left wing of his revolutionary coalition, the tenentes.

Opposition from the right, however, marked Vargas’ earliest moves away from the social reformism of his early years. A conservative insurgency in 1932 was the key turning point. After the July 1932 "constitutionalist" revolt—a veiled attempt by the paulista coffee oligarchs to retake the central government—Vargas tried to recover support of the landed elites, including the coffee growers, in order to establish a new alliance of power. The revolt reacted to Vargas’ appointment of João Alberto, a center-left tenente as "interventor" (provisional governor) in place of the elected governor of São Paulo. Elite paulistas loathed Alberto, resenting his centralization efforts and alarmed by the his economic reforms, such as a mere 5 percent wage increase and some minor distribution of some land to participants in the revolution . Amid threats of revolt, Vargas replaced João Alberto with a civilian from São Paulo, appointed a conservative paulista banker as his minister of finance, and announced a date for the holding of a constituent assembly . The coffee oligarchs were only emboldened, launching the counterrevolutionary revolt in July 1932, which collapsed after some minor, lackadaisical combat.

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