Brazil Politics: Lula Targets Economic Reform Agenda in Speech

(Bloomberg) -- Former Brazil President Luiz Inacio Lula da Silva gave a strong speech on Saturday to a crowd of supporters gathered in front of a metalworkers union headquarters outside the city of Sao Paulo. He criticized the Carwash corruption probe and the market-friendly agenda that is being implemented by President Jair Bolsonaro’s administration and Economy Minister Paulo Guedes’ team. Bolsonaro and his ministers struck back, while military army representatives worry about the risk of violence, according to the local newspapers.

Criticism of Guedes

“I doubt that the dream-destroying minister, the job-destroyer, the destroyer of Brazilian public companies called Guedes, sleeps with a clear conscience,” Lula said in a speech on Saturday. At the same time, Lula said that Bolsonaro was democratically elected and that the result must be accepted.

Lula’s Travels

Lula has pledged to travel around Brazil and Latin America, offering support for leftist leaders at a moment when the region is engulfed by growing political turmoil. Lula is expected to start his tour in the Northeast of Brazil, this Sunday, according to Folha de S.Paulo.

Bolsonaro’s Reply

Bolsonaro broke his silence about Lula’s release and wrote that he will not respond to “criminals who are now free,” via Twitter. Bolsonaro also met top military officials on Saturday morning to assess the outlook after the former president’s release, according to Estado.

Military Concern

Among the military, there is concern that Lula’s speech may incite violence, according to Estado. According to Folha de S.Paulo, the army fears the risk of radicalization between Bolsonaro and Lula’s supporters, but considers that both were reasonably reserved in their initial comments.

Counterattack

Guedes’s team is preparing for ways to counter Lula’s speeches. The ministry is betting on the argument that the economy is gaining steam, and that the government has released money, such as the FGTS funds, without cutting benefits, according to Folha. Bolsonaro also endorsed Justice Minister Sergio Moro’s reaction to Lula, according to Folha de S.Paulo. Moro has become a key player in Bolsonaro’s strategy of confronting Lula. The president himself accused Lula of causing the stock market drop on Friday:

Agenda Keeps Advancing

The government is set to launch a package to encourage the hiring of young and old people. The pension reform may be enacted on Tuesday, while the Senate is expected to complete the first round vote a constitutional amendment to include states and municipalities in the pension reform. The government is expected send a proposal for public administration reform to the lower house. Congress also looks set to speed up debate about jail time for convicts, following last week’s Supreme Court decision.

Obstruction

Brazil parties pledge to obstruct other agenda items in order to discuss imprisonment. Podemos and Novo parties will obstruct the lower house’s plenary and committees until a constitutional amendment proposal dealing with the rule on imprisonment after first appeal is voted on. Moro also defended the amendment.

Bolsonaro about Bolivia

Lula and Bolsonaro’s reactions to the crisis in Bolivia reflect the growing polarization in Brazil. While Lula called it a “coup,” Bolsonaro said the word “coup” is only used when the left loses, according to O Globo.

Other highlights

• Bolsonaro has sold 91 billion reais in assets of Banco do Brasil, Petrobras and Caixa: Folha de S.Paulo
• Government arranges meetings with international oil companies: Valor Economico
• Infrastructure studies fusion between three state-owned transport area: Valor Economico

Newspaper Top Stories

• O Estado de S. Paulo, Folha de S.Paulo and O Globo
  • Newspapers highlight Evo Morales’ resignation in Bolivia
• Valor Economico
  • Reports that only 6% of cities meet basic sanitation goals

Reporter on the original story: Fernando Travaglini in in São Paulo at ftravaglini@bloomberg.net

Editors responsible for the original story: Daniela Milanese at dmilanese@bloomberg.net, Josue Leonel

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