Stage success outside but big storms on the inside stage. While his visit to COP27 in Sharm El-Sheikh, Egypt, aroused hope and enthusiasm, Luiz Inacio Lula da Silva finds himself faced with a more difficult transition than expected in Brazil. Victorious over Jair Bolsonaro in the October 30 ballot, the left-wing president-elect has multiplied false notes and controversy in recent days.
It all started well though. It only took a few days for the very official transitional cabinet to set itself up. Responsible for preparing Lula’s assumption of office on 1er next January, it has thirty-one technical groups and dozens of experts, placed under the authority of the elected vice-president, Geraldo Alckmin. From the economy to health through diplomacy or agriculture, all areas of government policy are taken into account.
But, after a fanfare debut, the “lulists” were quickly disillusioned. “This is the most complex transition since the fall of the dictatorship in 1985”entrusts in off one of the coordinators of the process. “Not all departments are ready to collaborate. Some are clearly dragging their feet and slowing down.he adds, pointing in particular to the Ministry of Family and Human Rights, a bastion of radical evangelicals.
Strong tensions in the coalition
Strong tensions also run through the victorious coalition. In order to obtain a majority in Congress, Lula had to further widen his coalition, which could eventually aggregate up to fourteen political formations, ranging from the right to the extreme left. Between these motley allies, the battle for obtaining future ministries is fierce. Within Lula’s Workers’ Party (PT), some fear being dispossessed of the most prestigious portfolios.
The first serious pitfall of the transition concerned the budget. Lula has indeed announced his intention to free himself from the principle of capping public expenditure, enshrined in the Constitution. The objective: to negotiate with Congress an additional envelope of 175 billion reais (31 billion euros) in order to finance the revaluation of social minima. “Why do people have to suffer to ensure such fiscal stability in this country? »questioned Lula on November 10, during a speech in Brasilia.
The market reaction was immediate. In the wake of the president-elect’s speech, the markets panicked and the Sao Paulo stock market fell 3.35%, while the real plunged against the dollar. Lula drew criticism from his right-wing and center allies, as well as from the press. ” Lula embraced the lowest demagoguery”said the daily Folha de S. Paulo in a vitriolic editorial, dubbed “Bad Start”.
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