According to Folha de Sao Paulo, they would be Fernando Haddad, from the PT, in Finance and the liberal Pérsio Arida in Planning. Distrust in the markets.
The elected president of Brazil, Luiz Inácio Lula da Silva, would have decided to create a curious combination at the head of the economic area, with a man from the kidney of his Workers’ Party, Fernando Haddad, in the Ministry of Finance, and a tough liberal like Pérsio Arida, in the Ministry of Planning. This last portfolio is the one in charge of the Budget and the State reform plans.
The newspaper Newspaperwho consigned the version, affirmed that the intention of the next ruler, who will take office on January 1, will be keeping the party in charge of strategic decisions (Haddad) but opening space for the influence of an economist with an orthodox profile (Arida).
The version, at least regarding Haddad, seemed to be confirmed this Friday when the president-elect dispatched him to offer the speech at the annual luncheon of the Brazilian banking chamber, Febraban. But the message, considered vague and without precision, did not conform. The stock market fell again on the last day of the week 2% and the dollar rose.
Arida, who is a member of Lula’s transition teams, did not comment on whether he would agree to enter the next government under those conditions. The intention of the next president would be to announce the two names together to alleviate any backlash that might occur.
Combining two opposing personalities in economic leadership it is at least a risky bet.
Haddad, a former education minister with a Ph.D., law degree and master’s degree in economics, is not particularly liked by the markets. He was the candidate for president chosen by Lula in 2018, when the PT leader was imprisoned, accused of corruption.
Haddad is questioned about his ideological bias and also a tough negotiator, at a time that would require a delicate fencer due to the complex opposition front that the new government will face.
challenges
Lula won the elections but by a minimal difference of 1.8% of the votes. Outgoing President Jair Bolsonaro gathered almost half of the country’s votes, his allies control the legislature and the governments of several key states in the country. The economy in Brazil is discussed in Congress, precisely.
The most urgent proposal to negotiate in Parliament is precisely the one that allows a license in spending that exceeds the ceiling that the law sets for public expenses. This issue has become a mess for Lula’s party and has stalled in the midst of serious articulation problems, he maintains. Newspaper in his Time.news.
Haddad sidestepped that issue in his speech to the bankers, amplifying the concern of that sector of economic power.
Lula’s victory in the elections was well received by the markets, with increases the day after the elections. But soon those reactions turned negative.
The delay in naming the new head of the economic portfolio operated in this sense, as did the speeches by the president-elect in which he maintained that he preferred to cede to fiscal responsibility for the sake of a greater appreciation of the social.
Isaac Sidney, president of Febraban, stated in his opening message at the lunch that “banks are in favor of income distribution, but what the country needs is to believe to sustain these social policies.”
Haddad, in turn, stated in his speech that one of the priorities of Lula’s third government will be tax reformwith a reformulation of taxes on goods and wealth.
Sheet He pointed out that the former Minister of Education has two important characteristics for Lula: affinity and trust.
Source: Clarín newsroom