After the major defeat in Congress with the rejection of the changes in the sanitation framework, media sources informed that Lula’s government accelerated the distribution of resources to congressmen. Meanwhile, outside Brasília, the new ruler still faces resistance from the agribusiness. In addition, businessmen from various sectors fear the removal of measures implemented by the past government and that are well regarded.
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Resources to Congressmen
The Luiz Inácio Lula da Silva (PT) government accelerated the release of resources to be used by deputies and senators at their political bases after a defeat in a vote in the National Congress and threats of new setbacks.
About R$ 1.15 billion was announced for parliamentarians. In the previous months, the values made available had not yet reached R$ 200 million. The amount released so far represents about 6% of the R$ 21.2 billion foreseen for 2023.
The Planalto Palace plans to release more resources, which could reach R$ 1 billion, amid discussions on the project of the new fiscal framework in the National Congress. The urgency in processing the proposal was approved on Wednesday (17/05).
Problems in Political Articulation
The Lula government has been criticized for problems in political articulation, including by Federal Chamber President Arthur Lira. The situation gained new proportions last week with the first relevant defeat in the National Congress, with the overthrow by federal deputies of the decree that changed some rules in the Sanitation Framework.
Rejected by the Agribusiness
Resistance to the current government by the agribusiness was made clear after the reception given to former President Jair Bolsonaro in the biggest fair of the sector in Brazil. The invitation by the fair’s organization led to the absence of the current Agriculture Minister Carlos Fávaro. Sources from the sector say that Lula’s historical connection with the Landless Rural Workers Movement (MST) – which invades lands to pressure for the agrarian reform – is completely at odds with the sector aspirations. In contrast, his predecessor, brought safety for the agribusiness.
Changes in Measures
The attempts by the Luiz Inácio Lula da Silva government to try to dismantle measures approved during the tenures of Michel Temer and Jair Bolsonaro have become a major concern for a significant part of the business community, according to media sources.
Businessmen that spoke to Folha de São Paulo, informed that a few actions by the government have raised a red flag among their peers. Doubts about the government’s intentions to tamper with labor and social security reforms, as well as Lula’s statements against the independence of the Central Bank are among these subjects that displease them. However, the worst came with the Workers’ Party (PT) movements against the privatization of Eletrobras and the Sanitation Framework.
Our Analysis:
The government’s ability to negotiate with these groups will be essential to achieve political success and avoid the obstacles that are expected to be set by the large opposition in Congress, where the Liberal Party (PL) – Bolsonaro’s party – is the one with the biggest number of senators and federal deputies.
