Lula’s opposition articulates calling on Haddad to “frame” the government after criticism of the Central Bank

By Rodolfo Costa

The opposition to President Luiz Inácio Lula da Silva (PT) in the House of Representatives is articulating the summoning of the Minister of Finance, Fernando Haddad (PT), to clarify the government’s economic policy and to take a position on the recent criticism from Lula and part of the governing coalition against the autonomy of the Central Bank (BC) and the management of the monetary authority’s president, Roberto Campos Neto.

The objective of the opposition is to respond to the criticisms and movements of the government and the left in a strategic way.

Federal congressman Lindbergh Farias (PT-RJ), for example, filed a request on Wednesday (8) for Campos Neto to be summoned by the Finance and Taxation Commission (CFT) and explain the country’s monetary policy.

The summoning requests are different from the invitation ones.

They are used politically to “frame” the authority in question since, in summoning, there is the obligation to attend under the penalty of incurring a crime of responsibility.

It is with the same intention that the opponents plan a summoning of Haddad to wall up Lula and his government with his head of the economic team as an intermediary.

“We will just wait for the carnival to be over and, as soon as the commissions are installed, and the workers come back all right, we can propose this,” says federal congressman Evair Vieira de Melo (PP-ES), who is tipped to assume the leadership of the minority in the House, a space of opposition to the current government.

The congressman proposes a programmatic and strategic opposition to Lula and maintains that the Chamber’s regulations allow the instrument of inviting and even summoning a minister of state.

The parliamentarian cites, however, the proposal of an invitation, which Haddad could deny.

“The opposition has no difficulty making an invitation for a public hearing, and I can even be the author of an invitation,” he highlights.

The invitation proposal does not prevent a later summons, but other opponents disagree with the strategy.

Federal congressman Sanderson (PL-RS) talks about summoning Haddad and the chief minister of the Civil House, Rui Costa, as an example.

“We are going to ask for both of them to be summoned so that they can answer about this issue of the Central Bank, as well as about the issue of the replacement of the current president of the BRICS Bank, a respected economist, by [former Petista president] Dilma Rousseff,” he says.

Congressman Otoni de Paula (MDB-RJ) is another one to defend the idea.

He understands and agrees with Lula’s criticism of the current basic interest rate (Selic) level of 13.75% a year but disagrees with how the PT has positioned itself.

For him, the party builds a narrative of associating Campos Neto with former president Jair Bolsonaro (PL) and holding the Central Bank president responsible for high-interest rates.

“The PT tries to create a narrative of politicization of the Central Bank that it has a Bolsonarist in the presidency who would have interests in the non-growth of the country [to harm Lula].”

“So, if the PT thinks that Bolsonaro has the presidency of the Central Bank, Lula has the leadership of the Treasury,” he comments.

“If they want to politicize by calling on President Campos Neto to do politicization, we will also call on Lula’s man [Haddad]. And then, each one will have space to defend their economic policy,” Otoni adds.

HADDAD’S OPPOSITION MOVEMENT PLEASES EVEN INDEPENDENT DEPUTIES

Besides the opposition, the idea that Haddad clarifies his economic policy is defended by some congressmen that are more independent in relation to the government, especially in a context of debate about the monetary policy with Campos Neto.

Congressman José Nelto (PP-GO) is one of the enthusiasts of the idea.

“It has my full support because I am in Congress neither to please Bolsonarists nor Petitioners. I am in Congress in defense of Brazil and the people. It will be a great moment to debate why Brazil does not open its financial market to all banks on the planet.”

“What is the reason? Is it the labor laws? Other laws? What can the government and the Central Bank do about it? What do international banks want from Brazil?”

The congressman defends a wide opening of the financial system, as occurs in the United States and in other developed economies, and promises to act in defense of a wide debate about the theme by inviting Haddad and Campos Neto.

“We are going to dot the ‘i’s and cross the t’s to discuss how to break the bank monopolies in Brazil and open up the market,” he comments.

The congressman expresses his interest in questioning Haddad and Campos Neto about the government’s economic policy and the Central Bank’s monetary policy, such as how the Selic rate is evaluated and the composition of the Monetary Policy Committee (Copom) of the monetary authority.

Nelto reiterates his understanding of taking advantage of the occasion to open a debate about the financial system.

“The financial system is so perverse that it controls the President of the Republic, the Minister of Finance, the Central Bank, and even the National Congress,” he criticizes.

Congressman Evair de Melo thinks that the idea of a round table between the Minister of Finance and the president of the Central Bank is interesting.

“We can invite Haddad to debate with Roberto Campos in a round table on the topic [monetary policy of the Central Bank and its autonomy],” says Melo.

“It will even give Haddad time to study. It will be, at least, fun and democratic,” provokes the opposition parliamentarian.

How Lula’s opposition in the Senate positions itself on the government’s stance
Author of the bill (PLP 19/2019) that originated the law that ensured the autonomy of the Central Bank, Senator Plínio Valério (PSDB-AM) says he is “totally in favor” of inviting not only Haddad but also Campos Neto.

“Campos Neto so that we can clear up all these doubts that still exist and so that he can defend himself and explain to the senators,” he says.

The Toucan senator clarifies, however, that, as the author of the law, he prepared a dossier that he plans to deliver this week to each senator to clarify the Central Bank’s autonomy.

“It’s a small report about what an autonomous Central Bank is, and the advances obtained [with the law]. It is good that he [Campos Neto] speaks,” he says.

Valério explains that the very law that assures autonomy provides that the president of the monetary authority must appear before the Senate once every semester to present “the inflation report and the financial stability report, explaining the decisions taken in the previous semester.

About an invitation to Haddad, Valério defends under the argument that it is necessary to “understand what he really wants.”

“Because Haddad says one thing, although he is later rebuked, and Lula says another in relation mainly to autonomy. Parliament is the House for us to clarify and remove the doubts that harm and make Brazilians tense,” he says.

The PSDB adopted the opposition against the Lula government.

The government base in the Senate is already manifesting an interest similar to the one organized in the House.

On Wednesday, the PSD leader in the Senate, Otto Alencar (BA), said that the base plans to invite Campos Neto to debate interest rates in the Economic Affairs Commission (CAE).

The senator expects that Campos Neto will respond to the invitation.

“After the carnival, the CAE will invite him [Campos Neto] to debate the interest rate issue. He will come, as he always has,” declared the PSD leader.

Alencar clarified that he has a good relationship with the president of the monetary authority and defended the criticism made by Lula.

“President Lula’s criticism is of high-interest rates. If he [Campos Neto] lowers interest rates, the president will say that he is the best president [of the Central Bank] in the world,” he commented.

Opponents criticize Lula’s posture and understand it is a way to pressure Campos Neto’s resignation.

“To force out the president of the Central Bank, Lula wants to allege incompetence. Campos Neto helped Brazil to overcome inflation in the post-pandemic scenario! Make up another one, president! Just to remind you, the Central Bank is independent,” said Senator Luiz Carlos Heinze (PP-RS) in a post on Twitter.

Leader of the opposition in the Senate, Rogério Marinho (PL-RN), used social networks to assure that the opposition will do its part to “defend the structuring achievements of the country”.

“Instead of governing, Lula continues to say lulices: sabotages the economy by attacking the autonomy of the Central Bank, the modernization of regulatory frameworks and, now, the capitalization of Eletrobras,” he said on Twitter.

With information from Gazeta do Povo