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Brazil Politics - Brazil

Lula’s party fry Finance Minister Haddad again and compromise the new fiscal rule project

By · April 11, 2023 · 4 min read

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By Wesley Oliveira

The Workers’ Party (PT) president, Congresswoman Gleisi Hoffmann (PR), is one of the party members who has shown the most resistance to the text.

Still, after interference from Lula, she remained publicly silent.

After that, Congressman Lindbergh Farias (PT-RJ) became the main opponent of the proposal.

Finance Minister Haddad has sought support from President Lula and Vice-President Geraldo Alckmin
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For example, on Monday (10), the Workers Party member said in an interview with Forum magazine that the “framework is a mistake and can be deadly for Lula.”

For Farias, the president may pay a “high price for not adopting more expansionist economic positions and for keeping the conservative framework proposed by Haddad.

Just last week, Farias had already affirmed in an interview with the newspaper Folha de S. Paulo that the presentation of the new fiscal framework would be a “pact with the devil”.

Haddad even rebutted his colleague, claiming that it is not possible to “please 100% of the people” and demanded that the government create a “hegemonic core” to “put Brazil back on a sustainable development path”.

“Critical and praiseworthy manifestations will happen in any organization.”

“Now, who speaks for the Workers’ Party is its Executive, with all due respect to internal voices.”

“Nothing prevents a parliamentarian in office from presenting a project”, Haddad declared.

Discretely, government members evaluate that Farias’ manifestations occur through the political wing of the PT, led by Gleisi Hoffmann.

Behind the scenes in the Planalto, the evaluation is that Haddad’s frying is a “fight of egos” but that there is no expectation of obstruction to the fiscal rule project.

LULA COMES OUT IN DEFENSE OF HADDAD AND THE GOVERNMENT’S NEW FISCAL RULE

President Lula came out in defense of the new fiscal framework to get around the friendly fire within the government.

The orientation, according to advisors from the Planalto, is that the President of Brazil will speak publicly about the proposal as a way to strengthen Haddad within the government.

In the president’s evaluation, the new fiscal rule, which will be sent to Congress for analysis at the end of the week, has “realistic solutions”, puts an end to “the unfulfilled ties of the failed spending cap” and “puts the poor back in the budget”.

“Here, Haddad, I know you hear some criticism from time to time.”

“I have to praise you and the team you worked with because certainly, when it comes to the economy and tax policy, we will never have 100% solidarity,” said Lula when defending the Finance Minister.

Lula also said that the government would “reap the rewards” when the proposal is approved. “I am sure it will be successful. I am sure it will be approved, and we will reap the fruits planted in our proposal [of the fiscal framework],” added the president.

After Lula’s public nod in favor of Haddad, allies of the Finance Minister evaluated that he came out of the dispute strengthened against the political wing of the PT.

“This week, I saw a very bad article against you; I considered answering it.”

“My conciliator, [Alexandre] Padilha, thought it wasn’t worth it, better to keep quiet because society’s understanding of what was done is worth more than one person’s criticism,” Lula said without publicly quoting Congressman Lindbergh Farias.

HADDAD GOES AFTER SUPPORT FROM THE ‘CENTRÃO’ TO TRY TO APPROVE THE FRAMEWORK

To get around the criticism within the PT, Fernando Haddad will seek the support of congress members and senators from the center to approve the new fiscal rule.

In addition, the head of the economic portfolio also has the support of the presidents of the House, Arthur Lira (PP-AL), and the Senate, Rodrigo Pacheco (PSD-MG).

“The reception of the leaders and presidents was very good, as were the ministers, who got to know the framework on Friday. We are confident,” said Haddad.

Haddad’s allies affirm that, at this moment of negotiation, the minister intends to guarantee that Lira and Pacheco can shield the project.

According to the government leader in the House, Congressman José Guimarães (PT-CE), the discussion about the name of the rapporteur will take place in the coming days.

In another strategy to increase support for the new fiscal framework, Haddad will call on vice-president Geraldo Alckmin (PSB) and Planning Minister Simone Tebet to file the proposal in Congress.

The official justification is that the Minister of Finance will be at Lula’s party in China, and the text needs to be registered by the 15th of this month.

“Minister Simone will be here. The 15th is the deadline to send it. And she will be tranquil that all the ministers will validate it,” said the Finance Minister.

The internal evaluation within the government is that Alckmin and Tebet are names that operate outside the left-wing camp and can broaden support for the text within Congress.

The expectation, for example, is that Alckmin will seek votes even in the PSDB, his former party.

“My wish as the government leader is to vote on these matters until the end of June so we can start in July or August when we will vote on the Budget.”

“The base is going up a step each week. Since the beginning, we say that the priority is the framework and tax reform; everything else is an accessory,” said Congressman José Guimarães.

With information from Gazeta do Povo

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