The information suggested a random step, as if it had not been planned, rather a consequence of the urgency to complete the next government’s massive cabinet. But it looks like much more. Lula da Silva has achieved his known goal of arming himself an economic team with two faces… or three.
He has just appointed right-wing Senator Simone Tebet, a key ally in his run-off campaign, to the ministry of urban planning. It’s a crucial portfolio that is directly related to budgeting application and hence strong influence on the course of the economy.
This 52-year-old peasant woman with conservative cultural ideas, leader of the MDB and former lieutenant governor of Mato Grosso do Sul, will work alongside the head of the Treasury, Fernando Haddad, a heterodox economist, pure leader of the PT and who is often cited as the future political heir to the party leader.
When the novelty was known, they multiplied information on alleged unrest in the official party with internal sources warning about the different visions of both ministers which would make it difficult for them to complement each other.
Haddad has not publicly opposed it and those close to him have said they are happy with the appointment. It emerged, however, that he privately did so convince Lula to change her mindeven if necessary in favor of another member of the MDB.
functions
Information on this, released by the local press, reveals that the legislator wanted to keep public banks under the control of her ministry, but the idea was categorically rejected.
However, the newspaper portal Folha de São Paulo, he clarified that in any case Tebet will have among its secretariats the areas of strategic investment and coordination of state-owned companies. With this, you will be able to join the discussion on priority investments of the Confederation next to the Civil House (office of the Cabinet).
It will also participate in government strategic social program management committees such as Minha Casa, Minha Vida and Bolsa Família. In other words, the heart of public social investment.
Haddad’s doubts have an explanation. The senator is an intense politician, initially linked to outgoing president Jair Bolsonaro who abandoned due to the tragic handling of the Covid pandemic.
A presidential candidate, she finished third in the first round of the elections and has since become a strong ally of Lula, so much so that she even influenced the PT leader to appear publicly. against abortion and that the movement has abandoned the color red for white.
the markets wink
Tebet, unlike Haddad, is well regarded by the markets. It is linked to the agri-food sector, the central vertex of the country’s accumulation system and which has been critical of the PT, remaining aligned with Bolsonaro throughout his government.
Lula divided the economy ministry into three different portfolios, which until now had been managed in a unified manner by the liberal monetarist Paulo Guedes. They are Treasury, Planning and Industry. The latter was in the hands of the vice-president-elect Geraldo Alckmin, another man of strong link with the financial and stock market sector. They are not random political signals.
The official information was that Lula was looking for an appropriate portfolio for his ally, including Ambiente, and ended up deciding on this position. This view is supported by the fact that there is indeed some urgency for the new ruler to complete a long list of 37 ministriesagainst the current 23.
But there are other data that would indicate that the intention was to seek that balance in the management of the economy. In his first two terms, the former president promoted an economic policy of liberal court and fiscal discipline but with a social welfare system that allowed the Brazilian middle class to increase considerably.
In other words, it maintains special support for Haddad but generates two important counterweights for him. It would be partly due to strong pressure from PT a multiplied increase in public spending which in Brazil is regulated by law.
Lula recently obtained, after lengthy negotiations in a Congress dominated by the opposition, an increase in spending of 145 billion reais, above the limits. That’s just over $26 billion, which will be used to pay monthly benefits to some 21 million needy families, as well as other tools for young children and female breadwinners.
Brasilia. Special delivery
Source: Clarin
Mark Jones is a world traveler and journalist for News Rebeat. With a curious mind and a love of adventure, Mark brings a unique perspective to the latest global events and provides in-depth and thought-provoking coverage of the world at large.